Gem Aromatics IPO: Key Things To Know About Essential Oil Maker's Public Issue

Gem Aromatics Ltd IPO (Gem Aromatics IPO) is all set to open for subscription on August 19. The aromatics manufacturer has also announced the price band for the public issue. Here's a look at some key things to know about Gem Aromatics IPO before it opens for subscription:

Gem Aromatics IPO Offer Size, Listing Date, Price Band

Gem Aromatics IPO issue size aggregates to Rs 451.25 crore. The public issue consists of an offer for sale component of 8.5 million shares worth Rs 276.25 crore and a fresh issue of 5.4 million shares amounting to Rs 175 crore.

Gem Aromatics IPO price band has been fixed at Rs 309 to Rs 325 per share. The minimum lot size to apply for Gem Aromatics IPO for retail investors has been set at 1 lot consisting of 46 shares aggregating to a minimum investment of Rs 14,950.

Small Non Institutional Investors (sNII) can apply for Gem Aromatics IPO can bid for 14 lots or 644 shares which amounts to an investment of Rs 2,09,300.

As much as 50 per cent of the offer size of Gem Aromatics IPO has been reserved for Qualified Institutional Buyers. Up to 35 per cent of Gem Aromatics IPO offer size has been set aside for the retail category and 15 per cent of the net issue size has been reserved for Non-Institutional Investors (NII).

Gem Aromatics IPO share allotment status is likely to be finalised on August 22. Once the share allotment status of Gem Aromatics IPO is decided successful bidders will receive shares of Gem Aromatics in their demat accounts on August 25. Shares of Gem Aromatics will tentatively list on the BSE and NSE. Gem Aromatics IPO listing date is August 26.

Gem Aromatics: Key Financials

In the fiscal year ending March 31, 2025, Gem Aromatics' total income stood at Rs 505.64 crore, rising by over 11 per cent compared to Rs 454.23 crore in the preceding fiscal. The profit-after-tax of the company for the fiscal year under review grew by over 6 per cent to Rs 53.38 crore compared to Rs 50.1 crore in the preceding fiscal. Gem Aromatics' net worth also increased by more than 23 per cent to Rs 283.98 crore in the fiscal year ended March 31, 2025, compared to Rs 230.55 crore in the financial year ended March 31, 2024.

Gem Aromatics Peers

According to Gem Aromatics' Red Herring Prospectus (RHP) the company has several peers such as Camlin Fine Sciences Ltd, Yasho Industries Ltd, S H Kelkar and Company Ltd and Oriental Aromatics Ltd.

Gem Aromatics: Business Model

Gem Aromatics is a manufacturer of speciality ingredients. The company's product portfolio includes essential oils, aroma chemicals and value added derivatives. The company offers a wide range of products which are used by other industries such as oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness and pain management and personal care.

Gem Aromatics IPO: Risks and Strengths

Here's a look at some of the key risks related to Gem Aromatics's business according to the company's RHP:

• Gem Aromatics disclosed in its RHP that it gets a major part of its revenue from its top 10 customers. Losing any of these customers can adversely affect the company's revenues and profitability.

• Gem Aromatics said in its RHP that a major part of its revenue comes from the mint and mint derivatives product category. Fluctuations in demand for such products can negatively affect revenues and profitability.

• The company said that it has not entered into any long-term contracts with its suppliers, and failure to meet their obligations could adversely affect its business.

Here's a look at some of the key strengths of Gem Aromatics according to the company's RHP:

• The company claims that it is an established maker of speciality ingredients like essential oils, aroma chemicals and value-added derivatives.

• Gem Aromatics claims to have a wide product range and continuous product development with in-house research and development.

• Gem Aromatics has a long-standing relationship with well-established customers in India and across the globe.

Gem Aromatics: Objective

Gem Aromatics plans to use the money raised via the public issue to prepay or repay its outstanding borrowings and for general corporate purposes.