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2h ago

Gem Aromatics Opens Rs 451.25-Crore IPO at Rs 309–325 Price Band

Proceeds largely target debt reduction.

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Gem Aromatics IPO | Image: Gem Aromatics
Gem Aromatics IPO opens today: Should you subscribe to it?
Gem Aromatics IPO

Overview

  • The three-day offer runs Aug. 19–21, with allotment expected on Aug. 22 and a tentative BSE/NSE listing on Aug. 26.
  • The issue comprises a fresh sale of about 54 lakh shares (~Rs 175 crore) and an OFS of 85 lakh shares (~Rs 276.25 crore), with most primary proceeds earmarked to prepay or repay roughly Rs 140 crore of borrowings and the rest for general corporate purposes.
  • Ahead of the launch, Gem Aromatics raised Rs 135.4 crore from 14 anchor investors at Rs 325, including Nippon India Equity Opportunities AIF, Citigroup Global Markets Mauritius, Societe Generale-ODI and Goldman Sachs Investments (Mauritius), with no domestic mutual funds participating.
  • Unofficial grey-market indications diverged on Aug. 18, with InvestorGain citing a Rs 35 premium and Republic World reporting Rs 21, underscoring that any implied listing gains are speculative.
  • Anand Rathi calls the valuation fully priced at about 31.8x FY25 P/E and recommends subscribe for the long term, flagging heavy customer and supplier concentration, reliance on dōTERRA, large exposure to mint derivatives, and a Supreme Court land case related to the Budaun facility.