A Gujarat-based textile auxiliary chemicals manufacturer plans to raise Rs 12.77 crore via the BSE SME platform.
Vahh Chemicals Ltd., an ISO 9001:2015 certified manufacturer, supplier, and trader of textile auxiliary chemicals, opens for subscription on June 4 with the issue closing on June 8. The company is listing on the BSE SME platform through a fixed-price issue at Rs 60 per share.
What the Company Does
Incorporated in 2019 and operating from a leased facility in Surat, Gujarat, Vahh Chemicals manufactures customised textile auxiliary chemicals used in dyeing and printing houses across the textile industry. Its core business involves custom chemical blending engineered to improve texture and processing efficiency in textile mills — a business that requires formulation expertise and strong supplier relationships, and serves as a specialised input supplier to the textile production chain.
As of September 30, 2025, the company offered 92 SKUs and had served over 65 customers. Its product portfolio has expanded into nutraceuticals through a subsidiary, though textile auxiliaries remain the dominant revenue driver.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | June 4, 2026 |
| Issue Closes | June 8, 2026 |
| Listing | BSE SME (June 11, 2026) |
| Issue Price | Rs 60 per share (Fixed Price) |
| Face Value | Rs 10 |
| Issue Size | Rs 12.77 crore (100% Fresh Issue) |
| Lot Size | 2,000 shares (min 2 lots = 4,000 shares) |
| Min. Retail Investment | Rs 2,40,000 |
| BRLM | Marwadi Chandarana Intermediaries Brokers Pvt. Ltd. |
| Registrar | KFin Technologies Ltd. |
| Market Maker | Mansi Share & Stock Broking Pvt. Ltd. |
Financial Performance
| Particulars (Rs cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 7.46 | 10.15 | 23.75 |
| EBITDA | — | 1.12 | 4.68 |
| EBITDA Margin | — | 11.03% | 19.70% |
| PAT | 0.17 | 0.34 | 2.58 |
| PAT Margin | 2.28% | 3.35% | 10.86% |
Revenue has nearly trebled from Rs 7.46 crore in FY23 to Rs 23.75 crore in FY25. The PAT jump from Rs 0.34 crore in FY24 to Rs 2.58 crore in FY25 — a 7.6x increase on 2.3x revenue growth — is a striking margin expansion that immediately raises the question of sustainability. Top 10 customers contributed around 60% of FY25 revenue — significant concentration for a company of this size.
Risks to Consider
The business is entirely located in Surat/Gujarat, concentrating both manufacturing risk and market exposure in a single geography. Customer concentration of 60%+ in the top 10 accounts creates revenue vulnerability. The company’s trade receivables stood at Rs 16.65 crore as of September 30, 2025 — a large figure relative to annual revenues — suggesting extended credit to customers. The small post-IPO paid-up equity base indicates a longer gestation period for mainboard migration. Legal proceedings involving the promoters and related-party acquisition history of the business are worth reviewing in the RHP before applying.
Analyst View
Analysts note that the surge in bottom lines from FY25 onwards is non-convincing for a textile chemicals business operating in a highly competitive and fragmented segment. The issue appears aggressively priced based on recent financial data, and the small equity base post-IPO extends the migration timeline, point out analysts.