The speciality chemicals industry in India is witnessing robust growth, driven by increasing demand from various sectors like personal care, food, and pharmaceuticals. In this landscape, Gem Aromatics Limited, a leading manufacturer of speciality ingredients, is launching its Initial Public Offering (IPO) on August 19, 2025.
This article provides a comprehensive overview of the Gem Aromatics IPO, including its business model, financial performance, and a peer comparison to help you assess its potential as an investment.
About Gem Aromatics Ltd.
Founded in 1997, Gem Aromatics Ltd. is a well-established manufacturer of speciality ingredients, including essential oils, aroma chemicals, and value-added derivatives. The company’s business model is built on providing a wide and diversified product portfolio that caters to a broad range of industries, such as oral care, cosmetics, nutraceuticals, and pharmaceuticals.
With a track record of over two decades, Gem Aromatics has established leadership positions in several product categories, including being the largest processor of clove oil, Eugenol, and Eucalyptus Oil in India by volume. The company operates three manufacturing facilities strategically located in Uttar Pradesh, Dadra and Nagar Haveli, and Gujarat, serving over 200 customers, including prominent names like Colgate-Palmolive and Dabur.
Gem Aromatics Ltd. IPO Details
The Gem Aromatics IPO is a book-built issue of 1,38,84,615 shares, comprising a fresh issue of 53,84,615 shares and an Offer for Sale (OFS) of 85,00,000 shares. The company aims to raise a total of ₹451.25 crore.
Key IPO Details
| Event | Date |
| IPO Open Date | Tue, Aug 19, 2025 |
| IPO Close Date | Thu, Aug 21, 2025 |
| Tentative Allotment | Fri, Aug 22, 2025 |
| Initiation of Refunds | Mon, Aug 25, 2025 |
| Credit of Shares to Demat | Mon, Aug 25, 2025 |
| Tentative Listing Date | Tue, Aug 26, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 21, 2025 |
Important IPO Timeline
| Event | Details |
| IPO Date | August 19, 2025 to August 21, 2025 |
| Listing Date | – |
| Face Value | ₹2 per share |
| Issue Price Band | ₹309 to ₹325 per share |
| Lot Size | 46 Shares |
| Sale Type | Fresh Capital-cum-Offer for Sale |
| Total Issue Size | 1,38,84,615 shares (aggregating up to ₹451.25 Cr) |
| Fresh Issue | 53,84,615 shares (aggregating up to ₹175.00 Cr) |
| Offer for Sale | 85,00,000 shares of ₹2 (aggregating up to ₹276.25 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 4,68,52,523 shares |
| Share Holding Post Issue | 5,22,37,138 shares |
Lot Size of Gem Aromatics Ltd.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 46 | ₹14,950 |
| Retail (Max) | 13 | 598 | ₹1,94,350 |
| S-HNI (Min) | 14 | 644 | ₹2,09,300 |
| S-HNI (Max) | 66 | 3,036 | ₹9,86,700 |
| B-HNI (Min) | 67 | 3,082 | ₹10,01,650 |
Company Financial Snapshot
Gem Aromatics has demonstrated consistent financial growth, with both revenue and profitability showing an upward trend over the past three fiscal years. Profit after tax (PAT) increased by over 6% from FY24 to FY25, reflecting the company’s strong operational efficiency and market position.
| Period Ended | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
| Assets (₹ Crore) | 534.52 | 369 | 295.76 |
| Total Income (₹ Crore) | 505.64 | 454 | 425.09 |
| Profit After Tax (₹ Crore) | 53.38 | 50.1 | 44.67 |
| EBITDA (₹ Crore) | 88.45 | 78 | 66.19 |
| Net Worth (₹ Crore) | 283.98 | 231 | 179.53 |
| Reserves and Surplus (₹ Crore) | 278.26 | 224.88 | 182.36 |
| Total Borrowing (₹ Crore) | 222.37 | 111.13 | 89.36 |
Key Performance Indicators (as of Mar 31, 2025)
- ROE: 18.80%
- ROCE: 16.02%
- Debt/Equity: 0.78
- PAT Margin: 10.56%
- EBITDA Margin: 17.49%
Gem Aromatics IPO Peer Comparison
Gem Aromatics Ltd. operates in a competitive market with several other players in the speciality chemicals sector. Some of its relevant peers include Clean Science and Technology Ltd., Privi Speciality Chemicals Ltd., and Oriental Aromatics Ltd. When evaluating the IPO, investors should consider the financial health, growth prospects, and competitive strategies of these companies. Gem Aromatics differentiates itself through its long-standing presence, diverse product range, and a strong focus on mint and clove derivatives, which constitute a major portion of its revenue.
Use of IPO Proceeds
The funds raised from the Gem Aromatics IPO are intended to strengthen the company’s financial position and support its strategic growth initiatives. A substantial portion, approximately ₹140 crore, will be utilised for the repayment or prepayment of existing borrowings of the company and its subsidiary, Krystal Ingredients Private Limited.
Conclusion
The Gem Aromatics IPO presents an opportunity for investors to participate in the growth story of a well-established player in India’s speciality chemicals market. The company’s consistent financial performance, diverse product portfolio, and a clear plan for utilising the IPO proceeds to reduce debt and fund expansion make it an attractive proposition. However, investors must consider the risks, such as raw material price volatility and market competition, before making an investment decision. This IPO may be a compelling option for those with a long-term perspective on the speciality chemicals and ingredients sector.
