Gem Aromatics IPO Overview
Gem Aromatics Limited is launching its IPO on August 19, 2025, with a price band of ₹309–₹325 per share. The issue aims to raise ₹451.25 crore, consisting of a fresh issue of ₹175 crore and an offer for sale of ₹276.25 crore. Proceeds will be used for debt repayment and general corporate purposes. The IPO will close on August 21, 2025, and shares are expected to list on August 26, 2025, on NSE and BSE .
Gem Aromatics Subscription and GMP Status
| Subscription Rate Source: NSE/BSE | |||
| Category | Shares Offered | Shares Bid For | Subscription (x) |
| QIBs | 27,00,647 | 14,92,90,470 | 55.28 |
| NIIs | 21,24,515 | 9,57,30,186 | 45.06 |
| Retails | 49,57,201 | 5,10,94,546 | 10.31 |
| Employees | |||
| Shareholders | |||
| Total | 97,82,363 | 29,61,15,202 | 30.27 |
| Last Updated: 21 Aug 2025- 7 PM | |||
| GMP (₹) (grey market premium) | IPO Price (₹) |
| 26 | 309-325 |
| Last Updated: 21 Aug 2025- 7 PM | |
| 📌 Note: The above GMP data is unofficial and has been collected from multiple sources including grey market dealers and market observers. It is provided purely for informational and educational purposes. Please consult your financial advisor before making any investment decisions. | |
IPO Key Date
Core Business & Overview
Gem Aromatics Limited is a Mumbai-based manufacturer specializing in essential oils, aroma chemicals, and value-added derivatives. Established in 1997, the company caters to diverse sectors including pharmaceuticals, cosmetics, food & beverages, and industrial applications .
Gem Aromatics produces a wide range of specialty ingredients, focusing on essential oils, aroma chemicals, and value-added derivatives . The company serves prominent clients both domestically and internationally, including Colgate-Palmolive, Dabur, Patanjali Ayurved, SH Kelkar, Rossari Biotech, Symrise, dōTERRA, and Anhui Hautian Spices .
Strengths
- Diverse Product Portfolio: Gem Aromatics offers a comprehensive range of specialty ingredients, supported by continuous product development and R&D capabilities .
- Established Client Relationships: The company has cultivated long-standing relationships with well-established players in India and globally, reflecting its ability to meet stringent requirements and maintain a consistent track record of quality and reliability .
- Strategic Manufacturing Facilities: Gem Aromatics operates strategically located manufacturing facilities with a focus on sustainability, enhancing operational efficiency and market reach .
Potential Risks
- Customer Concentration: A significant portion of revenue is derived from a limited number of key customers, including its top customer, dōTERRA, which may pose risks if these relationships are disrupted .
- Raw Material Price Volatility: The company’s profitability is susceptible to fluctuations in raw material prices, such as clove, eucalyptus, and mint, which are procured locally and internationally .
- Regulatory Compliance: Operations must comply with stringent environmental regulations and sustainable practices, potentially increasing operational costs and affecting supply chain efficiency .
Financial Performance Overview (₹ in Crore)
| Financial Year | Revenue | Profit | Total Assets |
| FY 2023 | 424.79 | 44.67 | 295.76 |
| FY 2024 | 452.45 | 50.10 | 368.57 |
| FY 2025 | 503.95 | 53.38 | 534.52 |
Revenue Growth
- FY 2023 to FY 2024: Revenue increased from ₹424.79 crore to ₹452.45 crore, a growth of 6.5%, indicating steady business expansion.
- FY 2024 to FY 2025: Revenue rose further to ₹503.95 crore, a growth of 11.4%, showing accelerated growth and increasing market demand.
Profit
- FY 2023 to FY 2024: Profit increased from ₹44.67 crore to ₹50.10 crore, a 12.1% increase, reflecting better cost management alongside revenue growth.
- FY 2024 to FY 2025: Profit increased moderately to ₹53.38 crore, a growth of 6.5%, suggesting stable profitability though the growth rate slightly slowed compared to the previous year.
Total Assets
- FY 2023 to FY 2024: Assets rose from ₹295.76 crore to ₹368.57 crore, a 24.6% increase, indicating investments in capacity, R&D, or infrastructure.
- FY 2024 to FY 2025: Assets surged to ₹534.52 crore, a 45% increase, showing aggressive expansion, possibly for production scaling or strategic acquisitions.
Pros
- Gem Aromatics has over two decades of experience in manufacturing specialty ingredients like essential oils and aroma chemicals, serving clients globally.
- The company has demonstrated consistent growth, with revenue increasing from ₹424.79 crore in FY2023 to ₹503.95 crore in FY2025, and profit rising from ₹44.67 crore to ₹53.38 crore during the same period.
- Total assets grew from ₹295.76 crore in FY2023 to ₹534.52 crore in FY2025, indicating significant capacity expansion and operational scaling.
Cons
- A significant portion of revenue is derived from a limited number of key customers, including its top customer, dōTERRA, which may pose risks if these relationships are disrupted.
- The company reported total borrowings of ₹222.4 crore as of March 2025, indicating a leveraged position that could increase financial risk.
- Fluctuations in raw material prices, such as clove, eucalyptus, and mint, can significantly affect revenues and profitability margins.
- Operations must comply with stringent environmental regulations and sustainable practices, potentially increasing operational costs and affecting supply chain efficiency.
- The specialty chemicals sector requires ongoing capital investment for equipment replacement, technology upgrades, and operational expansion, which can strain cash flows.
Disclaimer:
The above IPO analysis and financial data are based on information provided by the company in its official documents. For complete details, please refer to the Red Herring Prospectus (RHP) linked above. Investors are strongly advised to consult their financial advisor before making any investment decisions.
