Gem Aromatics IPO: Price Band, Analysis, Allotment And GMP

Gem Aromatics IPO - Company Analysis

Gem Aromatics IPO, a Mainboard IPO, is a bookbuilding issue of Rs. 451.25 Cr (~1.38 crore Shares) by Gem Aromatics Ltd., which was incorporated in 1997, and produces specialty ingredients in India, such as value-added derivatives, fragrance compounds, and essential oils. The company sells a range of goods, including Value-Added Derivatives and Mother Ingredients.

Pharmaceuticals, wellness, pain management, oral care, cosmetics, and nutraceuticals are among the industries that utilize the company's goods.

• Phenol

• Mint and its derivatives,

• Clove and its derivatives, and

• Natural and synthetic compounds.

The business provides services in 18 countries as of Fiscal 2025.

It offers its goods directly to consumers on a business-to-business basis. It exports its goods using the following strategies: (i) direct sales, (ii) sales through its US subsidiary Gem Aromatics LLC, and (iii) sales through outside agencies.

Products Offerings

Gem Aromatics IPO Details

The Gem IPO open date is from Aug 19 to Aug 21, with IPO allotment on Aug 22, refund initiation on Aug 25, 2025.

The Rs. 451.25 Cr mainline IPO comprises a combination of fresh issue of 0.54 crore shares (Rs. 175 Cr) and an offer for sale (OFS) of 0.85 crore shares (Rs. 276.25 Cr).
                                                                                             
The Gem Aromatics IPO listing date might be on Tuesday, 26 August 2025, and it will be listed at the BSE and NSE. The Gem Aromatics IPO price band is Rs. 309 to Rs. 325 for each Share. 

Events	Date
IPO Opening Date	Aug 19, 2025
IPO Closing Date	Aug 21, 2025
IPO Allotment Date	Aug 22, 2025
Refund Initiation	Aug 25, 2025
Tentative IPO Listing Date	Aug 26, 2025

Industry Outlook

The Indian chemical industry has grown with a CAGR of ~7.8% from CY2019 to CY2025E. It is expected to grow at ~10% CAGR from CY2025E to CY2030.

If you want to apply for the IPO, click to open a Demat Account.

 

Company Financial 

(Amount in Cr)

Period	31 Mar 2025	31 Mar 2024	31 Mar 2023
Total Assets	534.52	368.57	295.76
Total Revenue	505.64	454.23	425.09
PAT	53.38	50.10	44.67
EBITDA	88.45	78.35	66.19
Net Worth	283.98	230.55	179.53
Reserves and Surplus	278.26	224.88	182.36
Total Borrowing	222.37	111.13	89.36

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

Net Cash Flow In Multiple Activities	31 Mar 2025	31 Mar 2024	31 Mar 2023
Net Cash Flow Operating Activities	(249.16)	401.31	153.05
Net Cash Flow Investing Activities	(925.37)	(510.50)	(143.58)
Net Cash Flow Financing Activities	1,026.38	153.60	64.37

Revenue Bifurcation 

Income Source

 

 

Revenue Bifurcation

Product-wise Revenue Breakdown

Sales-wise Revenue Breakdown

Geography-wise Revenue Breakdown

(Source RHP)

The Objective of The Issue

• Fully or partially repaying all or a portion of certain outstanding loans that our company and our subsidiary, Krystal Ingredients Private Limited, have taken out. ~Rs. 140 Cr.

• General corporate purposes.
  
  

Click to check the IPO application status.

Listed Peers of Gem Aromatics Ltd.

Company Name	Face Value (Rs. per Share)	EPS (Rs.)	P/E (x)
Clean Science and Technology Limited	1	24.88	57.33
Privi Speciality Chemicals Limited	10	47.87	50.51
Camlin Fine Sciences Limited	1	(8.03)	-
Yasho Industries Limited	10	5.32	374.92
S H Kelkar and Company Limited	10	5.40	42.33
Oriental Aromatics Limited	5	10.20	36.97

Valuation

Metric	Value
ROE	18.80%
ROCE	16.02%
Debt/Equity	0.78
PAT Margin	10.56%
EBITDA	17.55%
Price to Book Value	5.36
RoNW	18.80%

Evaluation of P/E Ratio

Considering the period of FY 2025, with an EPS of Rs. 11.39 from the last year, the resulting P/E ratio is 28.53x. When compared with the industry’s average P/E of 112.41x, it indicates an undervaluation (on a P/E ratio basis only). Hence, the price of the Share seems fairly priced for the investors.

Explore the Shreeji Shipping Global IPO.

IPO's Strengths 

• A respectable producer of specialized compounds in India, including value-added derivatives, fragrance chemicals, and essential oils.

• Broad range of products with continuous R&D and product development skills.

• Manufacturing plants that put sustainability first and are positioned strategically.

• Knowledgeable management team and promoters.

IPO’s Weaknesses 

• Customers associated with defense account for the majority of revenue, thus any slowdown or decrease in orders from them could have a negative effect on business.

• Certain components and raw materials are imported; problems with the global supply chain or exchange rate swings may result in higher prices.

• Gaining contracts and maintaining margins are more difficult when competing with big domestic and foreign businesses.

Gem Aromatics IPO GMP 

Gem Aromatics IPO GMP today has not started yet as of 14 Aug 2025, while writing this information.

Gem Aromatics Limited IPO Summary

IPO Opening & Closing Date	Aug 19, 2025 to Aug 21, 2025
Face Value	Rs. 2 per Share
Issue Price	Rs. 309 to Rs. 325
Lot Size	46 Shares
Issue Size	1,38,84,615 Shares (Rs. 451.25 Cr)
Offer for Sale	85,00,000 Shares (Rs. 276.25 Cr)
Fresh Issue	53,84,615 Shares (Rs. 175 Cr)
Listing At	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Ltd.

 

Gem Aromatics IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (46 Shares) amounting to Rs. 14950 and 13 Lots (598 Shares) amounting to Rs. 194350, respectively, while for S-HNI investors, the minimum Lot is 14 (644 Shares) amounting to Rs. 209300.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lots
SHNI (Minimum)	14 Lots
SHNI (Maximum)	66 Lots
BHNI (Minimum)	67 Lots

Gem Aromatics IPO Reservation

Institutional Share Portion	50%
Retail Investors' Share Portion	35%
Non-Institutional Shares Portion	15%

Gem Aromatics IPO Allotment Status

To check the Gem Aromatics IPO allotment status, visit the official Registrar’s website or the BSE website. Below are the website links for you.

Using Registrar’s Website - Kfintech IPO allotment status

Using BSE Website - ​BSE IPO allotment status

Promoters And Management of Gem Aromatics Ltd.

• Vipul Parekh

• Kaksha Vipul Parekh

• Yash Vipul Parekh

• Parekh Family Trust.
  
  

Pre-Issue Promoter Shareholding	75%
Post-Issue Promoter Shareholding	55.06%

Gem Aromatics IPO Lead Managers

• Motilal Oswal Investment Advisors Ltd.  
  
  

Dividend Policy

The company has not paid a dividend during the last three years.

Conclusion

Investors may find an opportunity in a reputable Indian producer of specialty ingredients with a broad product line and a significant global footprint through the Gem Aromatics IPO. The company's strengths are its steady financial growth, strategic manufacturing locations, and respectable customers. Risks, including fierce rivalry, imports of raw materials, and consumer concentration must be considered. 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Click Here To Stay Updated With The Upcoming IPOs.

DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.