Gem Aromatics IPO: Price Band, GMP, Dates and everything you need to know
A new opportunity is going to open for stock market investors, whose name is Gem Aromatics IPO. This IPO is making headlines even before its listing because the company’s business model is strong, financials are growing steadily and the grey market premium is also looking positive. If you are thinking of investing in new IPOs, then this IPO can be an interesting option for you.
Gem Aromatics IPO: Issue Size and Price Band
Gem Aromatics IPO will open on August 19 and will be available for investors till August 21. Price band has been decided from ₹309 to ₹325 per share. Total issue size of IPO is ₹451.25 crore, of which ₹175 crore will be raised through fresh issue and ₹276.25 crore through offer for sale (OFS).
If we talk about lot size of IPO, minimum 46 shares have to be applied. Company’s shares will be listed on both BSE and NSE. Lead manager is Motilal Oswal Investment Advisors and registrar is KFin Technologies Ltd.
Gem Aromatics IPO: Business Model and Operations
The company’s journey has been going on for the last 20 years and today Gem Aromatics IPO is giving investors an opportunity to be a part of that growth. The company manufactures essential oils, aroma chemicals and value-added derivatives that are used in cosmetics, pharmaceuticals, oral care, nutraceuticals and wellness industries.
The company has a major focus on mint and clove oil–based products, for which it has created a strong brand positioning. Subsidiary Krystal Ingredients Pvt. Ltd. is also working in the same line of business.
Gem Aromatics IPO: Financial Performance
If we talk about the numbers, the financial performance of the company is seen growing steadily. Revenue was ₹424.8 crore in FY23, which increased to ₹452.45 crore in FY24 and reached ₹503.95 crore in FY25. Profit has also been consistent – increasing from ₹44.67 crore in FY23 to ₹53.38 crore in FY25.
These numbers clearly show that Gem Aromatics IPO is the IPO of a company that is expanding its market demand and customer base.
IPO Details
- Issue opens: Aug. 19.
- Issue closes: Aug. 21.
- Issue price: Rs 309-325.
- Fresh issue: Rs 175 crore.
- Offer for sale: Rs 276.25 crore.
- Lot size: Minimum 46 shares.
Gem Aromatics IPO: Grey Market Premium (GMP)
According to market insiders, the GMP of Gem Aromatics IPO is currently ₹35. Meaning if the upper price band of the IPO is considered to be ₹325, then the expected listing price could be around ₹360. That is, there is a possibility of getting a premium of about 10% on listing. But always remember that GMP is a speculative indicator and not official data.
Gem Aromatics IPO: Use Of Funds
The company will use the ₹175 crore raised through the IPO to repay its outstanding borrowings and for general corporate purposes. This will strengthen the company’s balance sheet and reduce the debt ratio. The amount raised through OFS will go directly to the promoters.
Gem Aromatics IPO: Promoters and Management
The promoters of the company are Vipul Parekh, Kaksha Vipul Parekh, Yash Vipul Parekh and Parekh Family Trust. At the time of IPO, the promoters are selling some of their holdings.
The management team is experienced — Vipul Parekh is chairman and whole-time director, Kaksha Parekh is CFO and Yash Parekh is MD and CEO. The board has a total of 8 directors including 5 independent directors, including 2 women independent directors.
Gem Aromatics IPO: Industry Outlook
The global chemical industry is quite big and according to experts, its size will be approximately $5800 billion in 2025. It is expected to further grow to $7200 billion by 2030, which shows an annual growth rate of approximately 4.4%. India’s contribution in this is about 4.5% and Asia-Pacific region is considered to be the fastest-growing market.
If we look at the competition of Gem Aromatics, the market already has strong players like Clean Science and Technology, Privi Speciality Chemicals, Camlin Fine Sciences and Oriental Aromatics.
Gem Aromatics peers include Clean Science and Technology, Privi Speciality Chemicals, Camlin Fine Sciences and Oriental Aromatics.
Gem Aromatics IPO: Risks to consider
Like every IPO, Gem Aromatics IPO also has some risks associated with it. The biggest risk is customer concentration. The company earns approximately 56% revenue from its top 10 customers. If any one of these big customers leaves, it can have a direct impact on revenue and profit.
Another risk is geopolitical conflicts such as Russia-Ukraine war, Israel-Hamas crisis or Middle East tensions that can disturb the raw material and supply chain.
Final Verdict On Gem Aromatics IPO
If you are an investor who believes in long-term growth, then Gem Aromatics IPO can be a promising option for you. The company’s strong financial results, expanding industry and experienced management make it even more reliable. Yes, if you are looking for short-term listing gains, then you must consider market volatility and some risks associated with the company.
Disclaimer:
This article is for informational purposes only. You should consult your financial advisor before taking any financial decision based on the IPO details and analysis given here. Stock market investments always come with market risks.
Also Read
IPO Action This Week: 8 New Issues & 7 Listings to Heat Up Dalal Street
