Gem Aromatics Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹325
Per ShareLot Size
46 Shares
Minimum Investment
₹14,950
Issue Size
₹451.25 Cr
Face Value
₹2
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Gem Aromatics Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
75%
Promoter Holding (Post-Issue)
55.06%
Issue Type
Book Building
ISIN
INE06XZ01023
About the Company
We are an established manufacturer of specialty ingredients, including, essential oils, aroma chemicals and Value-Added Derivatives in India with a track record of over two decades. We offer a diversified portfolio of products, ranging from the Mother Ingredients to its various Value-Added Derivatives. Our products find application across a broad spectrum of industries, such as, oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness and pain management and personal care. Our track record, diverse product portfolio and brand recall has helped us establish several leadership positions within our product portfolio.
Industry Overview
India's chemical industry is one of the most diversified globally, and the specialty chemicals segment represents a significant growth area. With the global shift towards sustainability, technological advancements, and changing market dynamics, India is uniquely positioned to capitalize on these opportunities. Indian chemicals sector is set for rapid growth, with specialty chemicals expected to be the most lucrative segment. India attracts investment as companies diversify away from China. Chemical industry revenue has been growing at an average rate of 15% in the last 5 years. The Indian chemicals sector stands out as one of the most rapidly advancing industries globally.
Company History
Our Company was originally incorporated as `Gem Aromatics Private Limited' as a private limited company under the Companies Act, 1956, pursuant to certificate of incorporation dated October 3, 1997, issued by the Registrar of Companies, Mumbai at Maharashtra ("RoC"). Upon the conversion of our Company into a public limited company pursuant to a Board resolution dated July 13, 2023 and a Shareholders' resolution dated July 14, 2023, the name of our Company was changed to, `Gem Aromatics Limited', and a fresh certificate of incorporation dated August 17, 2023, was issued by the RoC.
Products & Services
- The Company is an established manufacturer of specialty ingredients, including, essential oils, aroma chemicals and Value-Added Derivatives in India with a track record of over two decades.
Growth Strategy
- Expansion of manufacturing capacities for existing and new products.
- Widen our product offerings by expanding our chemistry capabilities in order to expand our addressable market size and capture higher client wallet share.
- Continuing focus on sustainability and reducing operating costs and improving operational and business efficiency.
- Expanding our geographical reach through growing exports.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 13,884,615 equity shares of face value of Rs. 2/- each ("Equity Shares") of Gem Aromatics Limited ("Company") for cash at a price of Rs. 325.00 per equity share (Including a share premium of Rs. 323.00 per equity share) ("Offer Price") Aggregating to Rs. 451.25 crores ("Offer") comprising a fresh issue of 5,384,615 equity shares aggregating to Rs. 175.00 crores by the company ("Fresh Issue") and an offer for sale of 8,500,000 equity shares aggregating to Rs. 276.25 crores by the selling shareholders ("Offer for Sale") comprising 3,234,727 equity shares aggregating to Rs. 105.13 crores by Vipul Parekh, 1,548,873 equity shares aggregating to Rs. 50.34 crores by Kaksha Vipul Parekh, 1,591,400 equity shares aggregating to Rs. 51.72 crores by Yash Vipul Parekh (Each, the "Promoter Selling Shareholder"), and 2,125,000 equity shares aggregating to Rs. 69.06 crores by Doterra Enterprises, SARL ("Investor Selling Shareholder", and together with the promoter selling shareholders, the "Selling Shareholders", and such equity shares, the "Offered Shares").
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Established manufacturer of specialty ingredients, including, essential oils, aroma chemicals and Value-Added Derivatives in India.
- Wide product range with continuous product development and R&D capabilities.
- Long standing relationship with well-established customers in India and globally.
- Strategically located Manufacturing Facilities with focus on sustainability.
- Experienced Promoters and management team.
- We derive a significant portion of our revenue from our top 10 customers. In Fiscal 2025, we derived 56.06% of our total revenue from operations from our top 10 customers. The loss of any of these customers may adversely affect our revenues and profitability.
- The company derives a significant portion of its revenue from its top customer doTERRA Global Limited (formerly known as doTERRA GH Ireland Limited) ("doTERRA") with whom the company has entered into a supply agreement, the term of which is ending on December 31, 2028. If doTERRA chooses not to source their requirements from it, there may be a material adverse effect on it business, financial condition, cash flows and results of operations.
- We derive a substantial portion of our revenue from the mint and mint derivatives product category. In Fiscal 2025, 2024 and 2023, we derived 69.12%, 72.89% and 69.98% of our revenue from operations from the mint and mint derivatives product category. Any reduction in demand for products under the mint and mint derivatives product category may adversely affect our revenues and profitability.
- The Company is involved in an on-going litigation in the Supreme Court of India with respect to the land on which its Budaun Facility is located. Any adverse outcome in such proceedings may have an adverse effect on its business, results of operations, financial condition and cash flows.
- One of the entities, Gopinath Dairy Products Private Limited, which is identified as a part of the Promoter Group under the SEBI ICDR Regulations is undergoing liquidation proceedings and accordingly has not provided any information in respect of itself. All information in relation to Gopinath Dairy Products Private Limited included in the DRHP is from publicly available sources. Further, Lallubhai Hargovindas Chitalia, Krishna Lallubhai Chitalia, Rajesh Lallubhai Chitalia, individual members of its Promoter Group, along with Gopinath Dairy Products Private Limited, have been identified as wilful defaulters in their capacity as directors and guarantor of Gopinath Dairy Products Private Limited.