Gem Aromatics IPO opens for bidding: GMP up 9%; should you apply or not?

Gem Aromatics IPO: The initial public offering (IPO) of speciality ingredients manufacturer Gem Aromatics opened for subscription today, August 19, 2025. At the upper end of the price band of ₹309 to ₹325, the company aims to raise ₹451.25 crore. The mainline offering comprises a fresh issue of 5.4 million equity shares and an offer for sale (OFS) of 8.5 million equity shares.  

 

The mainline offering will close for bidding on Thursday, August 21. Investors can bid for a minimum of one lot comprising 46 shares. At the upper end price, a retail investor would require a minimum investment amount of ₹14,950. 

 

 

Kfin Technologies is the registrar of the issue. Motilal Oswal Investment Advisors is the sole book-running lead manager. 

 

According to the red herring prospectus (RHP), the company plans to utilise the net fresh issue proceeds for repayment of debt and general corporate purposes.

 

Ahead of the issue, the company raised over ₹135.37 crore from the anchor investors. Citigroup Global, Societe Generale, Goldman Sachs, Nippon India, SageOne, Nuvama, and Niveshaay Sambhav Fund were the top institutions that participated in the anchor round, according to an exchange filing. Gem Aromatics has allotted 4.16 million equity shares to various funds at ₹325 per share. 

Here's what the analysts suggest:

Swastika Investmart - Subscribe

According to analysts at Swastika Investmart, Gem Aromatics has demonstrated consistent growth in both revenue and profitability over the reported periods. The company's operations are supported by strong customer relations and repeat business. 

 

While the valuations appear to be on the higher side based on recent valuations, aggressive investors can consider allocating limited funds with a long-term perspective and listing gains, the brokerage said in a note.

Anand Rathi Research: Subscribe - Long Term

Analysts at Anand Rathi believe that the IPO is fully priced and assigned a 'Subscribe- Long Term' rating to the issue. According to the brokerage, the company 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 emphasising environmentally sustainable and efficient manufacturing practices.

 

"At the upper price band, the company is valued at P/E of 31.8x to its FY25 earnings, with EV/Ebitda of 21.6x and market cap of ₹1,697.7 crore post issue of equity shares," the brokerage said in a note.

Gem Aromatics IPO GMP

According to sources tracking unofficial markets, the unlisted shares of Gem Aromatics were trading at ₹353, up ₹28 or 8.62 per cent from the upper end price.  

About Gem Aromatics

Incorporated in October 1997, Gem Aromatics manufactures speciality ingredients, including essential oils, aroma chemicals, and Value Added Derivatives in India. Its products are used in several industries, including oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness and pain management, and personal care. 

 

In India, the company has a dominant presence in essential oil-based products and derivatives that are manufactured from mint, clove, eucalyptus oils, and other essential oils. During FY 2025 in India, Gem Aromatics was one of the largest procurers of Piperita oil and one of the largest processors of DMO, Clove oil, Eugenol, and Eucalyptus Oil in terms of volume manufactured.  

 

The company offers 70 products across four product categories, namely mint and mint derivatives; clove and clove derivatives; phenol; and other synthetic and natural ingredients.