Gem Aromatics files draft papers with Sebi to mobilise funds via IPO

Mumbai-based Gem Aromatics, a manufacturer of specialty ingredients, has filled its draft papers with Sebi to raise funds through an initial public offer.

The initial public offering (IPO) is a mix of fresh issue of equity shares worth up to Rs 175 crore and an offer for sale (OFS) of up to 89.24 lakh shares each by the promoter and an investor, according to the draft red herring prospectus (DRHP) filed on December 28.

Among promoters, Vipul Parekh will offload 33.96 lakh equity shares, Kaksha Vipul Parekh up to 16.26 lakh shares and Yash Vipul Parekh will sell up to 16.70 lakh shares.

Investor doTERRA Enterprises, Srl will divest up to 22.31 lakh equity shares in the company through the OFS.

The company may consider a pre-IPO placement aggregating up to Rs 35 crore.

Proceeds from the fresh issue will be used by Gem Aromatics for debt repayment and general corporate purposes.

Gem Aromatics Ltd has established itself as a leading manufacturer of specialty ingredients in India, including essential oils, aroma chemicals, and value-added derivatives, with over two decades of experience.

The company's roots in the industry date back to 1915, providing a solid foundation to capitalize on the growing market demand, according to a F&S report.

Its client portfolio includes leading names like Colgate-Palmolive, Dabur, Patanjali, SH Kelkar, Rossari Biotech, and Symrise, among others.

The company operates three advanced manufacturing facilities located in Uttar Pradesh, Dadra and Nagar Haveli), Gujarat).

For the six months ended September 30, 2024, revenue from operations stood at Rs 204.89 crore and profit after tax stood at Rs. 18.32 crore. The shares of the company are proposed to be listed on the National Stock Exchange (NSE) and BSE.