August 15, 2025
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Gem Aromatics IPO is a Rs.451.25 crore book-built issue, comprising a fresh issue of 0.54 crore shares worth Rs.175 crore and an offer for sale of 0.85 crore shares aggregating to Rs.276.25 crore. The subscription will open on August 19, 2025, and close on August 21, 2025. Allotment is expected on August 22, 2025, with listing on BSE and NSE likely on August 26, 2025. The price band is fixed at Rs.309–Rs.325 per share, with a lot size of 46 shares (minimum retail investment Rs.14,214). For sNII, the minimum is 14 lots (Rs.2,09,300), and for bNII, it is 67 lots (Rs.10,01,650). Motilal Oswal Investment Advisors Ltd is the BRLM and Kfin Technologies Ltd is the registrar.
Table of Contents
Latest news about this IPO
Grey market premium has remained steady on 15th August 2025
What are the promoters of Gem Aromatics IPO?
The promoters of the company are Vipul Parekh, Kaksha Vipul Parekh, Yash Vipul Parekh, and Parekh Family Trust.
The promoters will hold 55.06% shares in the post IPO capital of the company.
What are the Objects of Gem Aromatics IPO?
The Offer comprises a Fresh Issue by the Company and an Offer for Sale by the Selling Shareholders.
The net proceeds of the Offer are proposed to be utilised in the following manner:
- Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company and our Subsidiary, Krystal Ingredients Private Limited; Rs. 140 crore &
- General corporate purposes.
What is the business of Gem Aromatics?
Gem Aromatics IPO Details
| IPO opens on | 19 August, 2025 |
| IPO closes on | 21 August, 2025 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 138,84,615 Shares / Rs 451.25 Crore |
| * Fresh Issue | Rs 175 Crore |
| * Offer for Sale | Rs 276.25 Crore |
| Employee Portion | Rs. 10 crore |
| Face Value per share: | Rs. 2 |
| Price Band | Rs. 309-325 |
| Retail Discount | Rs 0 per share |
| Employee discount | Rs. – per share |
| Retail Lot Size | 46Shares |
| Listing will at | BSE, NSE |
How are the shares offered?
| Investor Category | Shares Offered |
| QIB | Not more than 50% of the Net Offer |
| Retail | Not less than 35% of the Net Offer |
| NII | Not less than 15% of the Net Offer |
How can the shares be applied?
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 46 | Rs.14,950 |
| Retail (Max) | 13 | 598 | Rs.1,94,350 |
| S-HNI (Min) | 14 | 644 | Rs.2,09,300 |
| S-HNI (Max) | 66 | 3,036 | Rs.9,86,700 |
| B-HNI (Min) | 67 | 3,082 | Rs.10,01,650 |
| IPO opens on | 19 August 2025 |
| IPO Closes on | 21 August 2025 |
| IPO Allotment on | 22 August 2025 |
| Unblocking of Asba | 25 August 2025 |
| Credit of Shares | 25 Augut 2025 |
| Listing of Shares | 26 August 2025 |
| Registered Office of the company Gem Aromatics Ltd. A/410, Kailas Complex, Vikhroli Powai Link Road, Park Site, Vikhroli (W) Mumbai, Maharashtra, 400079 |
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| Lead Managers of the IPO Motilal Oswal Investment Advisors ltd |
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| Registrar to IPO | |
| Kfin Technologies Limited https://ipostatus.kfintech.com/ |
Gem Aromatics Financial Snpshot
| Period Ended | 31-Mar-25 | 31-Mar-24 | 31-Mar-23 |
| Assets | 534.52 | 368.57 | 295.76 |
| Total Income | 505.64 | 454.23 | 425.09 |
| Profit After Tax | 53.38 | 50.1 | 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 |
| Amount in Rs. Crore | |||
Key Performance Indicators
| KPI | Values |
| ROE | 18.80% |
| ROCE | 16.02% |
| Debt/Equity | 0.78 |
| RoNW | 18.80% |
| PAT Margin | 10.56% |
| EBITDA Margin | 17.55% |
| Price to Book Value | 5.36 |
| EPS | 10.22 |
| PE Ratio | 31.8 |
How Gem Aromatics IPO compares with the Peers?
| Company Name | P/E (x) | RoNW (%) |
| Gem Aromatics | 31.80 | 18.8 |
| Clean Science and Technology | 57.33 | 18.67 |
| Privi Speciality Chemicals | 50.51 | 16.95 |
| Camlin Fine Sciences | -16.01 | |
| Yasho Industries | 374.92 | 1.46 |
| S H Kelkar and Company | 42.33 | 5.83 |
| Oriental Aromatics | 36.97 | 5.2 |
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Gem Aromatics Limited – IPO Review by Paresh Gordhandas, CA & Research Analyst
Business Overview
With over two decades of experience, Gem Aromatics is a leading manufacturer of specialty ingredients — including essential oils, aroma chemicals, and value-added derivatives — catering to diverse sectors like oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness, and personal care. The company has a strong global footprint, serving 225 domestic and 44 international customers across 18 countries. A diversified portfolio of 70 products and an in-house R&D team of 13 scientists give it a competitive edge in innovation and value addition.
Financial Performance (Rs. in crore)
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FY23–FY25 Growth: Revenue rose from Rs. 425.09 cr (FY23) to Rs. 505.64 cr (FY25), reflecting consistent top-line expansion.
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Profitability: PAT increased from Rs. 44.67 cr to Rs. 53.38 cr over the same period. EBITDA improved from ₹Rs. 66.19 cr to Rs. 88.45 cr, indicating operational efficiency.
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Margins: FY25 EBITDA margin stands at ~17.5%, PAT margin ~10.6% — healthy for the industry.
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Balance Sheet: Net worth improved from Rs. 179.53 cr (FY23) to Rs. 283.98 cr (FY25). Borrowings have more than doubled to Rs. 222.37 cr, suggesting higher leverage for expansion or working capital needs.
Valuation at Rs. 325/share
At FY25 EPS of ~Rs. 9.79, the IPO is valued at a P/E of ~33.2x, which is on the higher side compared to traditional chemical peers but could be justified by the niche nature of its product mix, export orientation, and stable margins. The rising debt is a point to watch.
Strengths
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Diversified product basket catering to multiple high-growth industries
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Strong export presence reducing domestic demand risk
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In-house R&D enabling higher-margin value-added products
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Long-standing relationships with reputed domestic & global clients
Risks
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Rising debt levels may impact leverage ratios
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Raw material price volatility can affect margins
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Dependence on export markets exposes business to currency and regulatory risks
Chanakya View
Gem Aromatics combines stable growth, strong client relationships, and a niche high-margin product portfolio. However, the IPO is not cheap, and the increased borrowings add a note of caution. Suitable for investors seeking long-term exposure to a specialty ingredients exporter with steady earnings, while aggressive traders may look for listing gains depending on grey market sentiment.
Gem Aromatics Limited manufactures specialty ingredients like essential oils, aroma chemicals, and value-added derivatives. Its products cater to oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness, pain management, and personal care industries.
TThe company’s portfolio includes advanced PV modules such as p-type monocrystalline PERC, n-tyThe company was incorporated in October 1997 and has over 25 years of experience in the specialty ingredients industry.
The IPO size is Rs.451.25 crore, comprising a fresh issue of Rs.175 crore and an offer for sale of RS276.25 crore. The price band is Rs.309–Rs.325 per share
In FY25, the company reported total income of ₹505.64 crore, profit after tax of ₹53.38 crore, and EBITDA of ₹88.45 crore, with margins around 10.6%
Chanakya sees long-term potential due to its niche product mix and global footprint. However, the IPO is priced at ~33× P/E, which is on the higher side, and rising debt is a concern. Listing gains are possible if grey market sentiment stays strong.
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