IPO Details
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Schedule of Gem Aromatics Ltd IPO
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Allotment of bids
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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
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Prepay or repay, fully or partially, the outstanding loans taken by the company and its subsidiary, Krystal Ingredients Private Limited.
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General corporate purposes.
Gem Aromatics Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to ₹175 crores |
Offer for Sale | Up to 8,924,274 Equity Shares |
EPS (in ₹) for FY 24 | 10.69 |
Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not less than 50% of the net issue |
Non-institutional Investors (NIIs) | Not less than 15% of the net issue |
Retail-individual Investors (RIIs) | Not less than 35% of the net offer |
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.
Gem Aromatics Ltd Strengths
Established manufacturer of specialty ingredients and Value-Added Derivatives in India
With a track record of over two decades, Gem Aromatics is an established player in the Indian specialty ingredients market. This strong foundation and diverse product portfolio have enabled Gem Aromatics to establish leadership positions in several product categories within the Indian market. During FY 2024 in India, they were the largest procurer of Piperita oil, and the largest processor of DMO, Clove oil, Eugenol and Eucalyptus Oil in terms of volume manufactured (Source: F&S Report). As on FY 2024, their share of DMO and Eugenol in India was 11% and 62%, respectively, in terms of volume manufactured (Source: F&S Report).
Wide product range with continuous product development and R&D capabilities
Gem Aromatics boasts a wide and differentiated product portfolio, encompassing 70 products across four categories: mint and mint derivatives, clove and clove derivatives, phenol, and other synthetic and natural ingredients. The company offers a diverse portfolio of products, ranging from Mother Ingredients to various Value-Added Derivatives, catering to a wide range of industries, including oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness, pain management, and personal care. The company's commitment to innovation is evident in its continuous product development efforts and dedicated in-house R&D capabilities.
Long-standing relationship with well-established customers in India and globally
Over the years, Gem Aromatics has cultivated long-standing relationships with a diverse customer base, including well-established players in India and across the globe. The company's clientele comprises prominent domestic and international corporations, such as Colgate-Palmolive (India) Limited, Dabur India Limited, Patanjali Ayurved Limited, SH Kelkar and Company Limited, Rossari Biotech Limited, Symrise Private Limited, dōTERRA, Ventos So Brasil Eireli, and Anhui Hautian Spices Co. Ltd., among others. This strong customer base reflects Gem Aromatics' ability to meet the stringent requirements of major industry players and maintain a consistent track record of quality and reliability.
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.
All Financial Information about Gem Aromatics Ltd
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Name of the Company | Total Income (in ₹ crores) | Basic EPS | NA V (₹ per share) | P/E (₹ per share) |
|---|---|---|---|---|
Gem Aromatics Limited | 452.45 | 10.69 | 49.21 | - |
Clean Science and Technology Limited | 791.48 | 22.97 | 113.24 | 63.15 |
Privi Speciality Chemicals Limited | 1,752.23 | 24.43 | 236.64 | 71.54 |
Camlin Fine Sciences Limited | 1,613.06 | (5.58) | 51.64 | - |
Yasho Industries Limited | 600.97 | 50.83 | 25.85 | 40.27 |
S H Kelkar and Company Limited | 1,929.99 | 8.93 | 87.62 | 27.75 |
Oriental Aromatics Limited | 836.40 | 2.71 | 187.9 | 155.61 |
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.
Gem Aromatics Limited Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 454.22 | 425.09 | 316.97 |
Profit Before Tax (in ₹ crores) | 67.59 | 56.08 | 44.36 |
Profit After Tax (in ₹ crores) | 50.10 | 44.67 | 31.18 |
EPS (Basic) | 10.69 | 9.53 | 6.66 |
Gem Aromatics Limited Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 67.59 | 56.08 | 44.36 |
Net Cash from (used in) Operating Activities (in ₹ crores) | 27.62 | 15.31 | 5.20 |
Net Cash from (used in) Investing Activities (in ₹ crores) | (38.37) | (14.35) | (14.01) |
Net Cash from (used in) Financing Activities (in ₹ crores) | 15.17 | 6.43 | 18.09 |
Net Cash and Cash Equivalents (in ₹ crores) | 15.88 | 10.58 | 6.49 |
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.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Gem Aromatics Ltd IPO FAQs
What is the Gem Aromatics Ltd IPO?
Gem Aromatics Ltd IPO consists of a fresh issue involves equity shares of up to ₹175 crore, while the offer for sale includes up to 8,924,274 equity shares.
Is Gem Aromatics IPO coming?
Yes, Gem Aromatics Ltd is expected to come up with its IPO soon.
Who is the chairman of Gem Aromatics?
Vipul Parekh is the chairman of Gem Aromatics.
What is the lot size of shares of Gem Aromatics Ltd IPO?
The company hasn’t given any information on the lot size yet.
From where can I read more about the IPO of Gem Aromatics Ltd?
You may read more about Gem Aromatics and its IPO from the company’s draft red herring prospectus (DRHP) here
