Gem Aromatics, supported by doTerra, aims to launch an IPO worth Rs.175 crore.

An established manufacturer of essential oil and aroma chemicals, Gem Aromatics submitted its DRHP (Draft red herring prospectus) with SEBI to launch an IPO (Initial Public Offering).

This IPO is a combination of a fresh issue of Rs 175 crore, and an offer-for-sale of Rs.89.24 lakh of equity shares individually by the promoter and the investor.

Vipul Parekh, Kaksha Vipul Parekh, and Yash Vipul Parekh are the promoters of the issue and will sell 33.96 lakh, 16.26 lakh, and 16.70 lakh of equity shares through offer-for-sale in the company.

Since 2019, doTerra has been one of the main supporters of Gem Aromatics and holds approximately 25% shares in the company. While the remaining 75% of shares are owned by the promoters of the company.

Before launching the IPO, Gem Aromatics might also plan to raise Rs.35 crore through a pre-IPO placement, where the company sells its shares to selected investors like anchor investors. If the pre-IPO placement is successfully completed then the amount of fresh issues will be reduced by 35 crores means the company will only raise Rs.140 crore through an IPO. But if the shares do not sell in pre-IPO placement, the amount of fresh issue will stay the same.

About Gem Aromatics

Gem Aromatics takes you into a world full of essential oils and aroma chemicals. One of the leading manufacturers of essential oils and aroma chemicals, Gem Aromatics is known to manufacture specialty ingredients like aroma chemicals to add flavors and fragrances. Their products are natural, high-quality, and innovative, with an experienced team close to them. They have earned leadership positions thanks to their incredible track records, brand recognition, and wide range of products. Their products are used in various sectors such as oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness and pain management, and personal care. Uttar Pradesh, Dadra, and Nagar Haveli are some of the places where their manufacturing facilities are located.

Colgate Palmolive India, doTerra Global, and Ventos Do Brasil LTDA. Dabur India, Patanjali Ayurved, SH Kelkar, Rossari Biotech, Ventos Do Brasil Eireli, and Anhui Huatian Spices Co have been long-time customers of Gem Aromatics.

In the Fiscal year 2024, One of the top customers of Gem Aromatics, doTerra Global generated 18.89% of revenue in the business. 

The main object behind raising the funds through an IPO is to pay and repay the company’s debt using the funds of Rs.140 crore. While also using some funds for general corporate purposes. Looks like the launching of an IPO is helping the company to reduce its debt. As of October 2024, the company has to pay the debt of Rs.153.6 crore. The selected lead manager of the issue is Motilal Oswal Investment Advisors.

Gem Aromatics IPO Prospectus:

Gem Aromatics Company Financial Report

Amount ₹ in Crores

Gem Aromatics IPO Valuation – FY2024

Gem Aromatics IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.

Peer Group Comparison

Objects of the Issue

• Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company and our Subsidiary, Krystal Ingredients Private Limited; and
• General corporate purposes

IPO Lead Managers aka Merchant Bankers

• Motilal Oswal Investment Advisors Limited