VAHH Chemicals IPO Smashes Records with 82x Subscription, UHM Vacation Completes Booking on Final Day

VAHH Chemicals IPO Smashes Records with 82x Subscription, UHM Vacation Completes Booking on Final Day​

Textile Auxiliaries Boom: VAHH Chemicals' Maiden Issue Attracts Massive Investor Demand​

The maiden public issue of VAHH Chemicals, a textile auxiliary chemicals maker, generated tremendous buzz in the market. The fixed price issue saw an impressive subscription rate of 82.78 times against its offer size. This stellar performance indicates strong investor confidence in the specialized chemical sector.

VAHH's IPO attracted bids for 18.56 crore shares from a total offering of 22.42 lakh equity shares across all categories of investors. Retail investors were particularly enthusiastic, bidding at 100.18 times their allotted quota. The non-retail portion was subscribed 74.26 times during the three-day bidding period from June 4 to June 8.

UHM Vacation IPO Closes with Moderate Success​

The public issue of UHM Vacation, a travel and tourism aggregator services provider, concluded its bidding phase on June 8th. The company's IPO successfully attracted a subscription rate of 2.29 times. Investors sought 49.75 lakh shares against the offering size of 21.69 lakh shares through 2,624 applications.

Retail investors drove significant interest in the UHM Vacation issue, bidding at 3.86 times their quota. The Qualified Institutional Buyers segment was fully subscribed, and the non-institutional investor portion achieved a subscription rate of 87 percent.

Funding Allocations and IPO Financial Details​

VAHH Chemicals is raising ₹13.45 crore through the IPO, with shares priced at ₹60 per share. Of this capital raise, ₹5.8 crore is earmarked for working capital requirements. The company also plans to utilize ₹1.9 crore to establish a new manufacturing facility in Surat and ₹1.8 crore for loan repayment.

UHM Vacation aims to raise ₹36 crore via its IPO, priced within the band of ₹157-₹166 per share. This funding includes both a fresh issue of 17.49 lakh shares and an Offer For Sale (OFS) of 4.2 lakh shares by the promoter. The proceeds from the fresh issue will be deployed for capital expenditure, marketing initiatives, working capital needs, and general corporate purposes.

Market Reception and Next Steps for IPOs​

Market observers noted that VAHH Chemicals' IPO shares traded at more than a 20 percent premium. Conversely, UHM Vacation IPO shares did not manage to attract any premium during the offering period.

Both companies are scheduled to finalize the allotment of their IPO shares on June 9th. Following this, their shares will be available for trading on the BSE SME platform starting from June 11th.

Brokering and Ancillary Listings​

The VAHH Chemicals IPO is managed by Marwadi Chandarana Intermediaries Brokers as its merchant banker. Similarly, Sobhagya Capital Options handles the book-building process for the UHM Vacation IPO. In other market movements, GenXAI Analytics, an AI-enabled workflow provider, was fully subscribed at 1.01 times on its second day of bidding, with the offer remaining open until June 9th.