The specialty ingredients manufacturer aims to raise approximately Rs 451 crore at the upper end of the price band. The offering includes a fresh issue of around 53 lakh equity shares, expected to fetch Rs 175 crore, and an offer for sale (OFS) of roughly 85 lakh shares, amounting to Rs 276.3 crore.
Gem Aromatics IPO GMP Today:
Gem Aromatics’ IPO is currently trading at an 8% premium over its issue price of Rs 325 per share. Grey market activity is unofficial and unregulated. While a premium indicates demand, actual listing performance can still vary based on broader market conditions and investor sentiment at the time of listing.
Gem Aromatics IPO Subscription Status:
As of 2.42 PM, the Gem Aromatics IPO received an overall subscription of 32%, indicating a moderate early response from investors. The retail investor segment led the activity, subscribing 15% of the shares reserved for them. The Non-Institutional Investor (NII) category saw a 27% subscription. Meanwhile, the Qualified Institutional Buyers (QIBs) segment had not placed any bids in the initial trading hours.
Gem Aromatics IPO: Key Details on Subscription, Pricing, and Valuation
The Gem Aromatics IPO opened for subscription on August 19 and will remain open until August 21. The specialty ingredients manufacturer aims to raise approximately Rs 451.3 crore at the upper end of the price band, which includes a fresh issue of around 53 lakh shares worth Rs 175 crore and an offer for sale of about 85 lakh shares valued at Rs 276.3 crore.
Each share has a face value of Rs 2, with a lot size of 46 shares, meaning the minimum investment for retail investors will be about Rs 14,950 at the highest price band.
At the top end, the company’s post-issue market capitalization is estimated to be around Rs 1,697.7 crore, reflecting a price-to-earnings (P/E) ratio of 31.8 times for FY25 and an enterprise value to EBITDA (EV/EBITDA) ratio of 21.6 times.
Gem Aromatics – Business Overview
Established more than 20 years ago, Gem Aromatics produces essential oils, aroma chemicals, and value-added derivatives used in oral care, personal care, wellness, nutraceuticals, and pharmaceutical products.
The company serves leading flavor and fragrance houses as well as FMCG brands, offering about 70 products across four categories—mint and its derivatives, clove and clove derivatives, phenol, and other synthetic and natural ingredients. It operates three manufacturing facilities located in Budaun, Silvassa, and Dahej.
Gem Aromatics claims to be one of India’s largest processors of clove oil, eugenol, and eucalyptus oil by volume, with a strong foothold in mint-based ingredients.
Exports accounted for approximately 50.7% of its operating revenue in FY25, with the United States being its largest international market. The fresh funds raised will primarily be used to repay or prepay existing borrowings and support general corporate purposes.
On the financial front, Gem showed consistent growth between FY23 and FY25. Revenue increased to about Rs 504 crore in FY25 from Rs 452.5 crore in FY24, while EBITDA rose to Rs 88.5 crore and net profit after tax reached Rs 53.4 crore.
The EBITDA margin expanded to 17.6%, and the PAT margin stood at 10.6% in FY25.
Should you subscribe
Anand Rathi has rated the issue as “Subscribe – Long Term,” noting that while it is fully priced, the company benefits from a well-established presence in essential oils and derivatives, a diverse product range, strong relationships with reputable clients, and ongoing capacity expansions that could drive future growth.
With a valuation of 31.8 times FY25 earnings, the stock trades at a premium compared to many mid-cap chemical peers based on near-term metrics. Therefore, the investment case depends heavily on successful execution, gaining market share in the mint and clove value chains, and scaling operations at the Dahej facility.
Key risks include customer concentration—where the top ten clients accounted for around 56% of FY25 revenue, including a significant supply deal with dōTERRA—dependence on mint derivatives, ongoing land litigation related to the Budaun plant, and reliance on a limited number of suppliers.
Motilal Oswal Investment Advisors is the book-runner and KFin Technologies is the registrar.
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