The Gem Aromatics IPO opened today, August 19, 2025, offering investors a chance to invest in a leading manufacturer of specialty ingredients. The IPO aims to raise ₹451.25 crore through a combination of a fresh issue of 0.54 crore shares worth ₹175 crore and an offer for sale of 0.85 crore shares amounting to ₹276.25 crore. The IPO will remain open for subscription until August 21, 2025, with a tentative listing date on the BSE and NSE set for August 26, 2025.
Price Band, Lot Size, and Investment Details
The price band for the IPO has been fixed at ₹309 to ₹325 per share. Retail investors can apply for a minimum lot size of 46 shares, requiring an investment of ₹14,950 at the upper end of the price band. Small non-institutional investors (sNII) can bid for a minimum of 14 lots (644 shares), amounting to an investment of ₹2,09,300.
Grey Market Premium (GMP)
The grey market premium (GMP) is an unofficial indicator of market sentiment before the IPO listing. As of August 18, 2025, the GMP for Gem Aromatics IPO was ₹31, suggesting a potential listing price of around ₹356 per share, a gain of 6.46% over the IPO cap price. On August 19, 2025, the GMP was reported at ₹28, which translates to an expected listing price of ₹353 apiece, an 8.62% premium over the issue price. It is important to note that the GMP is an unofficial figure and is subject to change based on market trends and sentiments.
Objectives of the IPO
Gem Aromatics plans to utilize ₹140 crore from the IPO proceeds for prepayment or repayment of outstanding borrowings of the company and its subsidiary, Krystal Ingredients Pvt. Ltd. The remaining funds will be directed towards general corporate purposes, supporting business operations and strengthening its financial flexibility for future growth opportunities.
Company Overview
Gem Aromatics Limited, founded in 1997, is a manufacturer of specialty ingredients, including essential oils, aroma chemicals, and value-added derivatives. The company's products are used in various industries, including oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness, pain management, and personal care. Gem Aromatics has a diversified product portfolio of over 70 products, categorized into mint derivatives, clove derivatives, phenols, and other synthetic & natural ingredients. The company sells its products through a business-to-business model to over 200 customers across 13 countries. Key clients include Colgate-Palmolive, Dabur, and dōTERRA.
Financial Performance
Gem Aromatics has demonstrated consistent revenue growth and stable profitability. The company's revenue increased by 11% from ₹454.23 crore in March 2024 to ₹505.64 crore in March 2025. The profit after tax (PAT) increased by 7% from ₹50.10 crore to ₹53.38 crore during the same period.
Strengths and Risks
Gem Aromatics has several strengths, including a focus on niche aroma molecules with high entry barriers, healthy margins, export presence, and efficient working capital management. However, the company also faces risks, such as a high dependence on its top 10 customers and fluctuations in demand for mint and mint derivatives.
Subscription Status
On the first day of the IPO, Gem Aromatics was subscribed 0.01 times as of 10:06 a.m. The retail investors portion was subscribed 0.01 times.
GMP Today
Gem Aromatics IPO GMP is ₹36 as of today.
Should You Subscribe?
SBI Securities has given a "subscribe" rating to the IPO, citing the company's improved financials. Analysts at Swastika Investmart also have a positive outlook for the IPO. Dilip Davda noted that the issue appears fully priced based on its recent financial data, and suggested that well-informed investors may park moderate funds for the long term. Investors should consider these factors, along with their own risk tolerance and investment objectives, before making a decision.
