Gem Aromatics IPO
Mumbai-based specialty chemical manufacturer, Gem Aromatics Limited, has announced its plans to enter the public market with an Initial Public Offering (IPO) set to open for subscription on August 19, 2025. The company is seeking to raise an aggregate of ₹451.25 crores at the upper end of its price band, which has been fixed at ₹309 to ₹325 per equity share with a face value of ₹2 each. This public issue, which will close on August 21, 2025, presents a significant milestone for the company, which has been operating in the aroma chemicals space for over two decades since its incorporation in October 1997.
The IPO is structured as a combination of a fresh issue of new equity shares and an Offer for Sale (OFS) by the company’s existing promoters. The fresh issue component aims to raise ₹175 crores through the issuance of new shares. The proceeds from this portion will be directly infused into the company. The larger component of the IPO is the Offer for Sale, where promoters, including Vipul Parekh and associated family trusts, will divest shares, amounting to ₹276.25 crores at the upper price band. This OFS portion will not result in any capital inflow for the company, as the proceeds will go to the selling shareholders.
More About Gem Aromatics
Gem Aromatics has established itself as a notable player in the manufacturing of specialty ingredients, essential oils, and value-added derivatives. Its products are integral to a wide array of industries, including oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness, and personal care. The company’s diverse portfolio is categorized into four main groups: mint and its derivatives, clove and its derivatives, phenol, and other synthetic and natural ingredients. This diverse product base has enabled Gem Aromatics to build a strong international presence, serving a reported 225 customers, including 44 international clients across 18 countries spanning the Americas, Asia, Africa, and Australia.
Gem Aromatics Financial
A review of the company’s restated consolidated financial information reveals a pattern of consistent growth. For the fiscal year ending March 31, 2025, Gem Aromatics reported a total income of ₹505.64 crores, an 11% increase from the ₹454.23 crores recorded in the previous fiscal year. Its profit after tax (PAT) also grew by 7%, rising from ₹50.10 crores in FY2024 to ₹53.38 crores in FY2025. This performance is underpinned by a growing asset base, which expanded from ₹368.57 crores to ₹534.52 crores over the same period. However, a notable point in its financials is the significant increase in total borrowings, which more than doubled from ₹111.13 crores in March 2024 to ₹222.37 crores in March 2025.
Gem Aromatics IPO Objectives
The company has clearly outlined the utilization plan for the funds raised from the fresh issue. The primary objective is to deleverage its balance sheet. A substantial portion, specifically ₹140 crores, of the net proceeds will be allocated towards the prepayment or repayment of certain outstanding borrowings of the company and its subsidiary, Krystal Ingredients Private Limited. This strategic move is expected to reduce the company’s debt burden, lower its interest expenses, and thereby improve its profitability in the long run. The remaining funds from the fresh issue will be used for general corporate purposes, providing flexibility for future operational needs and potential growth opportunities.
Gem Aromatics IPO Lot Size & More Details
For retail investors looking to participate, the IPO requires a minimum bid for one lot of 46 shares. At the upper end of the price band, this translates to a minimum application amount of ₹14,950. The issue has been allocated across different investor categories, with not more than 50% reserved for Qualified Institutional Buyers (QIBs), not less than 15% for Non-Institutional Investors (NIIs), and a significant portion of not less than 35% for Retail Individual Investors. The IPO timeline indicates that the finalization of share allotment is tentatively scheduled for August 22, 2025. Subsequently, refunds for unsuccessful applicants and the credit of shares to the demat accounts of successful allottees are expected to be completed by August 25.
The company is anticipated to make its stock market debut with a tentative listing on both the BSE and NSE on Tuesday, August 26, 2025. The entire process is being managed by Motilal Oswal Investment Advisors Ltd., acting as the book-running lead manager, with Kfin Technologies Ltd. serving as the registrar to the issue.