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Gem Aromatics IPO GMP: Gem Aromatics IPO opens on August 19, 2025, with a price band of Rs 309-325 per share, closing on August 21.
News18
Gem Aromatics IPO: Specialty ingredients maker Gem Aromatics IPO opens today, August 19, 2025, with a price band fixed at Rs 309-325 per share. The issue will close on August 21, 2025.
Gem Aromatics IPO Allotment And Listing Dates
The IPO comprises a fresh issue worth Rs 175 crore and an offer for sale (OFS) of Rs 276.25 crore, taking the total issue size to Rs 451.25 crore. Investors can bid for a minimum lot of 46 shares with a face value of Rs 2 per share.
The allotment will be finalized on August 22, refunds initiated on August 25, and credited to demat accounts on the same day.
The company’s shares are proposed to be listed on both BSE and NSE on August 26, 2025.
Gem Aromatics IPO GMP
Unlisted shares of Gem Aromatics are trading at Rs 353 apiece at the upper price band of Rs 325, reflecting a premium of 8.62 per cent. It indicates a GMP of Rs 28.
GMP is a rough indicator showing the grey market demand among investors for to-be-listed shares of the IPO. GMP is not stagnant but changes with time. It helps other investors to gauge the sentiment for a particular IPO.
Gem Aromatics: Other Info
Incorporated in 1997, Gem Aromatics is engaged in the manufacturing of essential oils, aroma chemicals, and value-added derivatives. Its diverse product portfolio of over 70 items caters to industries such as oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness, and personal care.
Major clients include Colgate-Palmolive, Dabur, Patanjali, and international player doTERRA, with mint and its derivatives contributing about 73% of FY24 revenues.
The company has demonstrated steady growth, with revenues rising from Rs 425.09 crore in FY23 to Rs 505.64 crore in FY25. Net profit also improved from Rs 44.67 crore to Rs 53.38 crore in the same period, while EBITDA margin stood at 17.5% in FY25.
Gem Aromatics IPO: Should You Subscribe?
Brokerage Swastika
At the upper price band, the issue is valued at a P/E of 28.52x based on FY25 earnings. The brokerage Swastika notes that while valuations are on the higher side, the company’s diverse portfolio, strong client base, and consistent growth make it a candidate for listing gains and long-term investment.
Anand Rathi in its note:
Gem Aromatics Limited is a well-established manufacturer in India,
engaged in the production of specialty ingredients such as essential
oils, aroma chemicals, and value-added derivatives. The Company
offers an extensive and diverse product portfolio, which continues to
expand through ongoing product development and strong in-house
research and development capabilities. Over the years, it has built
long-standing and trusted relationships with a wide base of reputed
customers, both within India and across international markets. In
addition, the Company operates strategically located manufacturing
facilities that are designed to support large-scale production while
also emphasizing environmentally sustainable and efficient
manufacturing practices.
At the upper price band company is valuing at P/E of 31.8x to its
FY25 earnings, with EV/EBITDA of 21.6x and market cap of ₹ 16,977
million post issue of equity shares.
We believe that the IPO is fully priced and recommend a “Subscribe Long Term” rating to the IPO.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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