Company Overview
Gem Aromatics Limited, founded in 1997 and headquartered in Mumbai, is a leading manufacturer of essential oils, aroma chemicals, and value-added derivatives. With over two decades of expertise, the company caters to oral care, cosmetics, nutraceuticals, pharmaceuticals, personal care, and wellness industries.
Its product portfolio includes mint derivatives, clove oil, phenol derivatives, natural and synthetic aroma chemicals. The company has built a strong global footprint, supplying to 225 domestic and 44 international customers across 18 countries, and operates a U.S.-based subsidiary (Gem Aromatics LLC, Delaware).
Infrastructure & Certifications
- Manufacturing Plants:
- Silvassa (Dadra & Nagar Haveli)
- Budaun (Uttar Pradesh)
- Dahej (Gujarat)
- R&D Centre: Maharashtra
- Quality Standards: ISO 9001:2015, ISO 14001, ISO 45001, FSSC 22000, HALAL, Kosher, GMP, FSSAI registered
- Credit Rating: Acuite “A (Stable)” long-term & “A1” short-term
These certifications highlight the company’s commitment to global standards, ensuring its products remain competitive in both domestic and export markets.
Financial Performance
| Particulars (₹ Cr) | FY 2024 | FY 2025 |
|---|---|---|
| Revenue | 454.3 | 505.6 |
| EBITDA | 78.3 | 88.5 |
| Profit After Tax | 50.1 | 53.4 |
| Net Worth | 230.6 | 284.0 |
| Total Assets | 368.6 | 534.5 |
| Borrowings | 111.1 | 222.4 |
📊 Analysis:
- Revenue grew by ~11% YoY, PAT by ~6–7%.
- Net worth improved to ₹284 Cr, showing consistent growth.
- Borrowings have doubled, indicating higher leverage—a potential risk factor.
IPO Details
- IPO Size: ₹451 Cr (₹175 Cr Fresh Issue + OFS ~85 lakh shares worth ₹276 Cr)
- Price Band: ₹309 – ₹325 per share
- Lot Size: 46 shares (Min. Investment ~₹14,950)
- Issue Opens: August 19, 2025
- Issue Closes: August 21, 2025
- Allotment Date: August 22, 2025
- Listing Date: August 26, 2025 (NSE & BSE)
- Anchor Investors: Citigroup Global, Societe Generale, Goldman Sachs, and others; raised ₹135.4 Cr before IPO.
Valuation Metrics
- Market Cap (Post-IPO): ~₹1,697.7 Cr
- P/E Ratio (FY 25): ~31.8x
- EV/EBITDA: ~21.6x
The IPO is priced at a premium compared to sector peers, suggesting growth optimism but limited immediate upside.
Strengths
✅ Diversified product portfolio across natural & synthetic aroma chemicals
✅ Strong global presence with reputed client base
✅ Robust infrastructure with global certifications
✅ Consistent financial growth and profitability
✅ High anchor investor participation
Risks
⚠️ Revenue concentration in top 10 customers—loss of any may impact profits
⚠️ Heavy reliance on mint-based ingredients—demand fluctuations pose risks
⚠️ High leverage—borrowings doubled in FY 25
⚠️ Elevated valuation—IPO priced aggressively
Analyst View
- Swastika Investmart: Subscribe (long-term growth potential)
- Anand Rathi: Subscribe for Long Term (pricing full, but strong fundamentals)
Market Impact & What Traders Should Do
- The IPO has generated strong interest in grey markets with moderate listing gains expected.
- Long-term investors may benefit from Gem Aromatics’ global presence, R&D strength, and essential oils demand boom.
- Short-term traders should be cautious as higher valuations and debt could limit immediate returns.
Conclusion
Gem Aromatics Ltd. brings a sustainable growth story with strong industry positioning and global certifications. While the IPO is slightly expensive, it has attracted big anchor investors and enjoys strong demand in the grey market.
👉 Verdict: Suitable for long-term investors, but traders should expect modest listing gains.
Subscription
| Investor | 19 Aug 2025 | 20 Aug 2025 | 21 Aug 2025 |
|---|---|---|---|
| Anchor | 1 | 1 | 1 |
| QIB | 1.03 | 1.50 | 53.76 |
| Non-Institutional | 0.89 | 4.03 | 45.85 |
| BNII | 0.68 | 2.96 | 48.48 |
| SNII | 1.32 | 6.17 | 40.59 |
| Retail | 1.10 | 3.25 | 9.97 |
| Total | 1.04 | 2.92 | 30.17 |
GMP Trend:
| Date | GMP |
|---|---|
| 19 Aug 2025 | ₹24 (07.38%) |
| 20 Aug 2025 | ₹26 (08.00%) |
| 21 Aug 2025 | ₹28 (08.62%) |
It should be noted that IPO GMP is subject to extreme volatility, so an investment decision based solely on Patel Retail IPO GMP will prove risky. Therefore, before to investing, consider all factors and make the right investment decision whether to invest in Patel Retail IPO or not.
How to Check IPO Allotment Status:
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BSE Webiste
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