Everything you need to know about Gem Aromatics IPO

About

Gem Aromatics is a Mumbai-based company engaged in the manufacturing of essential oils and aroma chemicals. Founded in 1997, the company serves the global flavour and fragrance industry with a broad range of products. With a focus on quality, compliance, and innovation, Gem Aromatics has established a presence in both domestic and international markets, supplying to clients across the USA, UK, France, and other regions.

IPO schedule

Issue open date 2025-08-19
Issue close date 2025-08-21
UPI mandate deadline 2025-08-21 (5 PM)
Allotment finalization 2025-08-22
Refund initiation 2025-08-25
Share credit 2025-08-25
Listing date 2025-08-26
Mandate end date 2025-08-08
Lock-in end date for anchor investors (50%) 2025-09-21
Lock-in end date for anchor investors (remaining) 2025-11-20

Financials

Financial Year Ended March 2023 March 2024 March 2025
Total Assets 295.76 368.68 534.52
Revenue 425.09 454.23 505.64
Profit After Tax 44.67 50.1 53.38

Issue size

Funds Raised in the IPO Amount
Overall ₹451.25 crores
Fresh Issue ₹175 crores
Offer for sale ₹276.25 crores

Utilisation of proceeds

Purpose INR crores (%)
Repayment of outstanding borrowings 140 (80%)
General corporate purposes

Strengths

  • Diverse product range with strong domestic and global client relationships
  • Modern manufacturing infrastructure and R&D focus
  • Strong relationships with prominent clients like Colgate-Palmolive, Dabur, and Patanjali.
  • Steady revenue growth in recent financial years

Risks

  • High dependence on a few major customers, especially doTERRA
  • Dependence on mint and mint derivatives, accounting for approximately 73% of revenue in FY 2024.
  • Ongoing litigation concerning land at the Budaun facility
  • No long-term contracts with key customers and suppliers
  • Vulnerable to raw material price volatility and regulatory changes