Vahh Chemicals IPO Update: Listing Pop Expected at 15% Amid GMP Signals

Vahh Chemicals IPO Sees Solid Response from Investors

The initial public offering (IPO) of Vahh Chemicals, a company dealing in textile auxiliary chemicals, has received a strong response from investors for its share sale. The IPO opened for subscription on June 4 and closes today, June 8. The company's shares are also seeing solid traction in the grey market.

As of the final day of the bidding process by 11 am, Vahh Chemicals IPO had received bids for 3,44,76,000 shares as against 21,28,000 shares on offer, resulting in a total subscription of 16.20 times. The non-institutional investor (NII) quota was subscribed 12.40 times and the retail portion received 20 times bids.

The grey market premium (GMP) for Vahh Chemicals IPO stood at ₹9. This means that shares of Vahh Chemicals are trading ₹9 higher than the offer price of ₹60. At the prevailing GMP, Vahh Chemicals shares could list at ₹69, a premium of 15%. The GMP had reached its highest of ₹15 at one point, while the lowest was nil.

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Vahh Chemicals is a fixed price issue of ₹13.45 crore, with the company selling 0.22 crore shares at ₹60 apiece. Investors looking to apply for the offer can bid in lots of 2,000 shares. Retail investors need to apply for at least two lots, resulting in a minimum payout of ₹2,40,000.

The offer is entirely a fresh issue, with all proceeds going to the company. Vahh Chemicals plans to use the funds for funding working capital needs, setting up a new manufacturing facility at Surat, repayment of a loan availed by the firm and general corporate purposes.

The allotment for Vahh Chemicals IPO will be finalised on June 9 and the listing is expected to take place later this week on Thursday, June 11. According to its prospectus, Vahh Chemicals is engaged in the business of manufacturing and trading of textile auxiliary chemicals. Its operations primarily involve the sourcing and blending of textile chemicals essential for various stages of textile processing, including pre-treatment, dyeing, printing, and finishing.

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As of September 30, 2025, Vahh Chemicals' product portfolio comprises 92 SKU's in the chemical division. The chemical business is predominantly conducted on a business-to-business basis. Its facility spans approximately 301.25 square meters. Further, it has also established a strong distribution network in Surat, supported by a strategically positioned manufacturing facility.