Gem Aromatics IPO is all set to open for subscription on August 19, 2025, with a closing date of August 21, 2025. Incorporated in October 1997, Gem Aromatics Limited is engaged in the manufacturing of specialty ingredients, including essential oils, aroma chemicals, and value-added derivatives, with more than two decades of industry experience.
The company’s product portfolio ranges from mother ingredients to advanced value-added derivatives, catering to both domestic and international markets. Gem Aromatics currently offers around seventy products, which are classified into four main categories, including mint and its derivatives, and clove and its derivatives.
This IPO update will be followed by details on the issue size, price band, financial performance, and risk factors.
Gem Aromatics IPO Date
The key pointers for the Gem Aromatics IPO dates are:
- Bidding Opening Date: August 19, 2025
- Bidding Closing Date: August 21, 2025
- Allotment Date: August 22, 2025
- Initiation of Refunds (in case of less or no allotment): August 25, 2025
- Shares Credited to Your Demat Account: August 25, 2025
- IPO Listing Date: August 26, 2025
- Listing on Exchange: BSE and NSE
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Gem Aromatics IPO Issue Size
Gem Aromatics IPO valuation, as denoted by the market capitalisation, stood at ₹1,697.71 crores. Here are the important details:
- Gem Aromatics IPO Price Band: ₹309 to ₹325 per share
- Lot Size: 46 Shares
- Issue Size and Amount: 1,38,84,615 shares (aggregating up to ₹451.25 Cr)
- Fresh Issue: 53,84,615 shares (aggregating up to ₹175.00 Cr)
- Offer for Sale: 85,00,000 shares of ₹2 (aggregating up to ₹276.25 Cr)
Gem Aromatics IPO Proceeds Usage
The net proceeds from the Gem Aromatics IPO are proposed to be utilised for the following purposes:
- To prepay or repay, either fully or partially, certain outstanding borrowings of the company and its subsidiary, Krystal Ingredients Private Limited.
- To meet general corporate requirements.
Gem Aromatics IPO Reservations
Gem Aromatics IPO reservations to different investors are:
- For QIBs: Not more than 50% of the Net Issue
- For NIIs: Not less than 15% of the Net Issue
- For Retail Investors: Not less than 35% of the Net Issue
Gem Aromatics IPO Lot Size
Gem Aromatics IPO lot size is 46 shares, wherein bidding can be done in multiples. The minimum amount that each category of investor needs to bid in this IPO is:
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 46 | ₹14,950 |
| Retail (Max) | 13 | 598 | ₹1,94,350 |
| S-HNI (Min) | 14 | 644 | ₹2,09,300 |
| S-HNI (Max) | 66 | 3,036 | ₹9,86,700 |
| B-HNI (Min) | 67 | 3,082 | ₹10,01,650 |
Gem Aromatics IPO Details: Promoter Holding
The promoters of the company are Vipul Parekh, Kaksha Vipul Parekh, Yash Vipul Parekh, and Parekh Family Trust.
Gem Aromatics IPO: Company Overview
Gem Aromatics Limited, incorporated in October 1997, is a manufacturer of speciality ingredients in India, with over two decades of experience in producing essential oils, aroma chemicals, and value-added derivatives.
The company’s product range spans from mother ingredients to advanced value-added derivatives, catering to diverse industries such as oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness, pain management, and personal care. Its portfolio comprises seventy products grouped into four main categories — mint and its derivatives, clove and its derivatives, phenol, and other synthetic and natural ingredients.
In FY25, Gem Aromatics served 225 domestic customers and 44 international customers across 18 countries, including regions in the Americas, Asia, Africa, and Australia. The company sells its products directly to customers on a business-to-business basis, with export sales conducted through direct shipments, its U.S.-based subsidiary Gem Aromatics LLC, and third-party agencies.
As of March 31, 2025, the company had an in-house R&D team of 13 scientists, instrumental in developing advanced formulations in value-added derivatives through state-of-the-art technology.
The company’s competitive strengths include its reputation as a leading manufacturer of specialty ingredients in India, a broad product range supported by ongoing product development and strong R&D capabilities, long-standing relationships with established domestic and global customers, strategically located manufacturing facilities with a focus on sustainability, and an experienced team of promoters and management.
Gem Aromatics IPO: Financial Performance
Gem Aromatics Ltd’s key financials for different periods are as follows:
| Particulars (in ₹ Cr) | 31 Mar 2025 | 31 Mar 2024 | YoY Change |
|---|---|---|---|
| Revenue from Operations | 503.95 | 452.45 | 11% |
| Profit After Tax | 53.38 | 50.10 | 7% |
| EBITDA | 88.45 | 78.35 | 13% |
| Total Assets | 534.52 | 368.57 | 45% |
| Total Borrowing | 222.37 | 111.13 | 100% |
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- Gem Aromatics Ltd. reported an 11% increase in operating revenue, rising from ₹452.45 crores in FY24 to ₹503.95 crores in FY25, supported by steady demand across its product portfolio.
- Profit after tax grew by 7%, from ₹50.10 crores in FY24 to ₹53.38 crores in FY25, reflecting stable operations and controlled expenses.
- EBITDA rose by 13%, increasing from ₹78.35 crores in FY24 to ₹88.45 crores in FY25, indicating improved operating efficiency.
- Total assets rose sharply by 45%, moving from ₹368.57 crores in FY24 to ₹534.52 crores in FY25, highlighting investments in capacity and infrastructure.
- Total borrowings doubled, increasing from ₹111.13 crores in FY24 to ₹222.37 crores in FY25, reflecting higher leverage to support growth initiatives.
Gem Aromatics IPO Peer Comparison
Here is the competitor analysis of Gem Aromatics Limited:
| Company Name (FY25) | EPS (Basic ₹) | P/E (x) | RoNW (%) |
|---|---|---|---|
| Gem Aromatics | 11.39 | 28.52 | 18.80 |
| Clean Science and Technology | 24.88 | 57.33 | 18.67 |
| Privi Speciality Chemicals | 47.87 | 50.51 | 16.95 |
| Yasho Industries | 5.32 | 374.92 | 1.46 |
| S H Kelkar and Company | 5.40 | 42.33 | 5.83 |
| Oriental Aromatics | 10.20 | 36.97 | 5.20 |
- EPS: Gem Aromatics’ EPS is higher than peers like Yasho Industries (₹5.32) and S H Kelkar (₹5.40), which shows strong earnings per share. However, it is lower than the top earners, Privi Speciality Chemicals (₹47.87) and Clean Science and Technology (₹24.88).
- P/E Ratio: Gem Aromatics has the lowest P/E Ratio of 28.52x, which highlights its undervalued investment potential.
- RoNW: Gem Aromatics has the highest returns on net worth of 18.80%, indicating the efficient use of shareholders’ funds.
Gem Aromatics IPO Risk Factors
Gem Aromatics IPO is exposed to various risk factors that can eventually affect its business and investors’ perception:
- Revenue concentration: A substantial share of the company’s revenue comes from a small group of key customers, including its largest client, dōTERRA, making it dependent on these relationships for sustained business performance.
- Budaun facility litigation: The company is engaged in ongoing litigation before the Supreme Court of India concerning the land on which its Budaun facility is located. An unfavourable verdict could negatively impact its business, operations, financial position, and cash flows.
- Dependence on external suppliers and logistics partners: The business relies on third-party suppliers for raw materials and on external logistics providers for product delivery. This dependence exposes it to risks such as supply chain disruptions, cost volatility, and transportation challenges.
For all the insights on Gem Aromatics IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for the Gem Aromatics IPO easily on the SMC ACE Apply by opening free demat account now.
Frequently Asked Questions – FAQs
1. What are the IPO dates for Gem Aromatics?
The IPO opens on August 19, 2025, and closes on August 21, 2025. The allotment will be finalised on August 22, 2025, and the tentative listing date is August 26, 2025, on BSE and NSE.
2. What is the price band and lot size for the Gem Aromatics IPO?
The price band is ₹309 to ₹325 per share. The lot size is 46 shares, and retail investors can bid for a minimum investment of ₹14,950.
3. How will the IPO proceeds be used?
The funds will be used to prepay or repay certain borrowings of the company and its subsidiary, Krystal Ingredients Private Limited, and for general corporate purposes.
4. Who are the promoters of Gem Aromatics Limited?
The promoters are Vipul Parekh, Kaksha Vipul Parekh, Yash Vipul Parekh, and the Parekh Family Trust.
5. What are the key risk factors for Gem Aromatics IPO?
Major risks include revenue dependence on a few key customers, ongoing litigation over the Budaun facility land, and reliance on third-party suppliers and logistics providers.
References:
https://www.chittorgarh.net/reports/ipo_notes/gem-aeromatics-ipo-rhp.pdf
Author: All Content is verified by SMC Global Securities.
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