Gem Aromatics IPO

About Gem Aromatics Limited IPO

Gem Aromatics Limited is planning an Initial Public Offering (IPO) consisting of a fresh issue and an offer for sale. The fresh issue involves equity shares with a face value of ₹2, aggregating up to ₹175 crores, while the offer for sale includes up to 8,924,274 equity shares of ₹2 each. The total offer size will combine these components, with the exact aggregate value yet to be disclosed.

Objectives of Gem Aromatics Limited IPO

• Prepay or repay, fully or partially, the outstanding loans taken by the company and its subsidiary, Krystal Ingredients Private Limited.

• General corporate purposes.

Industry Outlook

The Indian chemical industry is diversified, with specialty chemicals leading in growth. India is poised to benefit from the global shift towards sustainability and changing market dynamics. The specialty chemicals sector is attracting investment as companies diversify away from China, adopting a China+1 strategy. The sector has experienced an average growth rate of 15% in the past five years. The industry outlook thus remains positive, with India emerging as a key player in the global market.

Company Information

Gem Aromatics Limited is an Indian manufacturer of specialty ingredients, such as essential oils, aroma chemicals, and value-added derivatives. The company has a track record of over two decades and serves a variety of industries, including oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness, pain management, and personal care.

Gem Aromatics commenced operations in 1999 with a focus on mint and mint derivatives, expanding into clove and clove derivatives in 2009. The company's product portfolio includes 70 products across four categories: mint and mint derivatives, clove and clove derivatives, phenol, and other synthetic and natural ingredients.

Risks of Gem Aromatics Limited IPO

Dependence on key customers: The company derives a significant portion of its revenue from a limited number of key customers, including its top customer, dōTERRA.

Litigation risk related to Budaun Factory: The company is involved in an on-going litigation in the Supreme Court of India with respect to the land on which their Budaun Facility is located. Any adverse outcome in such proceedings may have an adverse effect on their business, results of operations, financial condition and cash flows.

Reliance on third-party suppliers and logistics: The company relies on third-party suppliers for its raw materials and logistics providers for the delivery of its products, which exposes it to risks associated with supply chain disruptions, price fluctuations, and logistics challenges.

Anchor Investor Bidding Date: TBA

Registrar: KFin Technologies Limited

Book Running Lead Manager: Motilal Oswal Investment Advisors Limited

Business Model

Gem Aromatics Limited manufactures and sells specialty ingredients such as essential oils, aroma chemicals, and value-added derivatives. It offers a diversified product range from mother ingredients to value-added derivatives. The company sells its products both domestically and internationally. It focuses on selling natural, natural-like, and synthetic essential oils to industries like flavours, fragrances, FMCG, and pharmaceuticals.

Company Growth Trajectory

Gem Aromatics has experienced a consistent increase in revenue from operations and EBITDA over the past three fiscal years. In Fiscal 2024, revenue from operations grew by 6.51% to ₹452.45 crores from ₹424.79 crores in Fiscal 2023. EBITDA also increased by 18.38% to ₹78.35 crores in Fiscal 2024 from ₹66.18 crores in Fiscal 2023.

How to Check Allotment Status of Gem Aromatics Limited IPO?

1. Visit the Registrar's Website

To check the IPO allotment status for Gem Aromatics Limited IPO, visit the official website of KFin Technologies Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.

2. Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.

On the BSE IPO page, follow these steps:

• Select 'Equity' from the dropdown menu
• Choose 'Gem Aromatics Limited' in the next dropdown
• Enter your application number
• Enter your PAN
• Click 'Search' Your Gem Aromatics IPO allotment status will be displayed.

3. Verify on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Gem Aromatics IPO allotment status.

Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:

• Application number
• PAN

Then click 'Submit'. Your Gem Aromatics IPO bid and allotment details will be displayed.

How to Apply for Gem Aromatics Limited IPO?

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.