GEM AROMATICS IPO

An Overview of the GEM AROMATICS Public Offering

Investors seeking opportunities in the specialty chemicals sector should take note of the upcoming initial public offering by Gem Aromatics Limited. This IPO represents a chance to invest in a company with an established presence in the global flavour and fragrance industry.

The IPO will offer shares within a specific price range, allowing investors to subscribe in lots. All critical dates, from the opening of the subscription window to the final listing on the stock exchange, are detailed below to assist potential investors in planning their participation.

Key Dates for GEM AROMATICS IPO Participants

Understanding the timeline of an IPO is crucial for investors. The following schedule outlines the important dates related to the Gem Aromatics IPO, from application to listing:

• Opening Date: 19 Aug 2025
• Closing Date: 21 Aug 2025
• UPI Payment Deadline: 21 Aug 2025 (5 PM)
• Allotment Announcement: 22 Aug 2025
• Refund Processing: 25 Aug 2025
• Demat Credit: 25 Aug 2025
• Stock Market Listing: 26 Aug 2025
• Mandate Validity End: 05 Sep 2025
• Anchor Investor Lock-in Release (50%): 21 Sep 2025
• Anchor Investor Lock-in Release (Remaining): 20 Nov 2025

*Dates may be revised as per official updates.

Please note that the anchor investor lock-in period typically concludes 30 days after the actual allotment date for half of their shares, and 90 days for the remainder. Investors are advised to monitor official announcements for any schedule revisions.

Delving into GEM AROMATICS: Company Background

Founded in 1997, Gem Aromatics is a Mumbai-based company primarily engaged in the manufacturing of essential oils and aroma chemicals. Operating within the dynamic flavour and fragrance industry, the company serves a broad range of clients globally. With a strong commitment to quality, regulatory compliance, and continuous innovation, Gem Aromatics has carved out a significant presence in both domestic and international markets. Its products are supplied to diverse clientele across regions including the USA, UK, France, and various other international territories, establishing it as a key player in its specialized sector.

Understanding the IPO’s Financial Structure

The Gem Aromatics IPO aims to raise a substantial amount of capital to fuel its future growth and operational needs. The total issue size reflects a combination of fresh equity issuance and an offer for sale by existing shareholders.

The fresh issue component signifies new capital flowing directly into the company, intended for specific corporate objectives. Conversely, the offer for sale (OFS) component represents existing shareholders selling their shares, where the proceeds go to these selling shareholders rather than into the company’s coffers. The company has demonstrated steady revenue growth in recent financial years, which underscores its operational performance; however, specific detailed financial metrics for profitability are not explicitly provided in the public domain at this stage.

Strategic Utilisation of IPO Proceeds

The capital raised through the fresh issue component of the Gem Aromatics IPO has been earmarked for specific strategic initiatives, designed to strengthen the company’s financial position and support its ongoing operations. The proposed allocation of funds is as follows:

A significant portion of the fresh issue proceeds is allocated towards the repayment of outstanding borrowings, which is expected to enhance the company’s financial health by reducing its debt burden and improving its balance sheet. The remaining funds are designated for general corporate purposes, providing the company with flexibility to address various operational needs, support future growth initiatives, and manage day-to-day business requirements.

Competitive Advantages of GEM AROMATICS

Gem Aromatics possesses several competitive strengths that underpin its market position and growth potential:

• **Diverse Product Portfolio and Strong Client Network:** The company offers a wide range of essential oils and aroma chemicals, catering to a global client base within the flavour and fragrance industry. Its strong relationships extend across both domestic and international markets.
• **Modern Manufacturing and R&D Focus:** Gem Aromatics benefits from a modern manufacturing infrastructure coupled with a dedicated focus on research and development, enabling innovation and adherence to high-quality standards.
• **Key Client Relationships:** The company has established robust relationships with prominent clients, including industry leaders such as Colgate-Palmolive, Dabur, and Patanjali, which speaks to its product quality and reliability.
• **Consistent Revenue Growth:** Gem Aromatics has demonstrated steady revenue growth over recent financial years, indicating healthy business expansion and market acceptance of its offerings.

Important Risk Considerations for Investors

As with any investment, potential investors in Gem Aromatics should carefully consider certain risk factors that could impact the company’s performance:

• **Customer Concentration Risk:** There is a high dependence on a few major customers, notably doTERRA. The loss of, or a significant reduction in business from, any of these key customers could adversely affect revenues.
• **Product Concentration Risk:** A substantial portion of the company’s revenue, approximately 73% in FY 2024, is derived from mint and mint derivatives, making it vulnerable to market fluctuations or changes in demand for these specific products.
• **Litigation Concerns:** The company is involved in ongoing litigation concerning land at its Budaun facility, which could lead to unforeseen legal costs or operational disruptions.
• **Absence of Long-Term Contracts:** Gem Aromatics does not hold long-term contracts with its key customers and suppliers, which could expose it to greater price negotiation risks and revenue instability.
• **Vulnerability to External Factors:** The business is susceptible to raw material price volatility, given the nature of its products, and to changes in regulatory policies that govern the flavour and fragrance industry.

IPO Subscription Trends: Real-time Updates

The subscription performance of an IPO provides insights into investor sentiment and demand across different categories. As of the closing time on August 21, 2025, the Gem Aromatics IPO witnessed significant interest from all investor segments:

*GMP figures are unofficial and may vary; exchange data is more reliable.

The robust subscription rates, particularly from Qualified Institutional Buyers and Non-Institutional Investors, indicate strong confidence in Gem Aromatics’ business model and future prospects. Retail participation also showed healthy demand, contributing to the overall oversubscription of the issue.

Participating in the GEM AROMATICS IPO

Investors interested in subscribing to the Gem Aromatics IPO have a limited window to submit their applications. Ensure all application formalities are completed before the subscription closing date.

Investors can participate in this IPO via the official Dhan Kirti IPO platform before the subscription closes.