About the Company: Gem Aromatics Ltd.
Gem Aromatics Ltd. is a leading manufacturer of specialty ingredients such as essential oils, aroma chemicals, and value-added derivatives. Established in 1997 and based in Mumbai, the company serves multiple industries—oral care, cosmetics, wellness, pharmaceuticals, nutraceuticals, and personal care. It sells more than 70 products and exports to over 18 countries, directly reaching B2B customers through its subsidiary in the USA and other international agents.
Gem Aromatics is known for its strong research and development, with an in-house team of 13 scientists. Major clients include big brands like Colgate-Palmolive, Dabur, Patanjali, and more.
READ RHP (Red Herring Documents filed with ROC)- SEBI|PUBLIC ISSUES|GEM AROMATICS
Gem Aromatics IPO Details – Key Points
| Detail | Information |
|---|---|
| Issue Price Range | ₹309 – ₹325 per share |
| Face Value | ₹2 per share |
| Minimum Lot (Retail) | 46 shares (₹14,950 approx) |
| Maximum Lot (Retail) | 13 lots (598 shares, approx ₹1,94,350) |
| Minimum Lot (HNI) | 14 lots (644 shares, approx ₹2,09,300) |
| Issue Type | Book Built (Fresh Issue + Offer For Sale) |
| Total Issue Size | ₹451.25 crore |
| Fresh Issue | ₹175 crore |
| Offer for Sale (OFS) | ₹276.25 crore (approx 85 lakh shares) |
| Listing | NSE, BSE |
| Registrar | Kfin Technologies Ltd. CLICK HERE |
IPO Timeline (Important Dates)
| Event | Date |
|---|---|
| IPO Opens | 19th August 2025 |
| IPO Closes | 21st August 2025 |
| Allotment Final | 22nd August 2025 |
| Refunds Start | 25th August 2025 |
| Shares in Demat | 25th August 2025 |
| Listing Date | 26th August 2025 |
What’s the Money Used For?
- Prepayment or repayment of loans (up to ₹140 crore).
- Funding general corporate purposes and expansion.
- Supporting growth in new product categories and international markets.
Key Financial Metrics
| Metric | FY 2023 (₹ Cr.) | FY 2024 (₹ Cr.) | FY 2025 (₹ Cr.) |
|---|---|---|---|
| Revenue | 424.79 | 452.45 | 503.95 |
| Profit After Tax | 44.67 | 50.10 | 53.38 |
| EBITDA | 66.18 | 78.35 | 88.46 |
| EBITDA Margin (%) | 15.58 | 17.32 | 17.55 |
| PAT Margin (%) | 10.52 | 11.07 | 10.59 |
| Earnings per Share | 9.53 | 10.69 | 11.39 (Pre-IPO) |
| Return on Net Worth | 24.88% | 21.73% | 18.80% |
| Debt/Equity Ratio | 0.44 | 0.36 | 0.78 |
What does these numbers mean?
- Revenue: Total amount from sales.
- EBITDA: Profit before loan interest and main taxes.
- PAT (Profit After Tax): Final profit after all costs.
- EBITDA Margin: Profit as a % of revenue from main business.
- Return on Net Worth: How well the company uses the shareholders’ money.
- Debt/Equity: How much debt the company has compared to its total value.
Analysis
- Revenue and profit have grown steadily over the last three years.
- Profit margins remain strong, showing the company is efficient.
- Debt increased in FY25 for expansion, but is still manageable.
- The company uses its funds well and keeps costs under control.
Why Some Investors Like This Mainboard IPO
- Gem Aromatics is a big name in the fast-growing flavor and fragrance industry.
- Exports to many countries and supplies to major Indian FMCG brands.
- Money from the IPO is being used to reduce debt and grow the business.
- Focus on research, new products, and global expansion.
- Consistent revenue and profit growth.
Points That Need Caution
- Heavy dependence on the flavors and personal care industry—any slowdown might affect sales.
- Relies on a few large customers; losing them could be risky.
- Raw material prices may rise and affect profits.
- Competition from big global and domestic companies.
- Growth depends on timely execution of expansion plans.
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.