Vahh Chemicals IPO

About this issue

Vahh Chemicals listed at +16.7% against its issue price of ₹60. The book is 87.17 times subscribed overall. The grey market premium is +₹5 (+8.8%), which is an informal figure and not a quoted price. Our call is Risky, on 78% of our checks.

Segment

SME

Price

₹60

Lot size

2,000 shares

One lot costs

₹1,20,000

Issue size

₹13 Cr

Grey market premium

+₹5 (+8.8%)

Subscribed

87.17x

Listed at

+16.7%

Our call

Risky

What we checked

• Profitable in the latest yearPAT ₹5.09 Cr
• Profit grew year on yearPAT +97%
• Revenue grew year on yearRevenue +82%
• Margin not collapsingPAT margin 10.9% vs 11.8%
• Borrowing under half of net worthDebt/net worth 0.76
• Return on net worth above 15%RoNW 38.5%
• Post-issue P/E under 40P/E 9.8
• Price to book under 6P/B 4.7
• Majority is fresh capital100% fresh issue
• Promoters keep at least half64.6% held post-issue
• Anchor investors participatedNo anchor book
• Overall book more than 10× covered87.2× overall
• Lead manager above segment medianMarwadi Chandarana Intermediaries Brokers Pvt.Ltd.: 12 past issues, +22% avg vs +8% segment median

2 further checks could not be judged, because the issue did not disclose enough. They count neither for nor against.