As an investor, deciding whether to invest in an IPO can often be challenging. If you are confused and worried about whether to Apply for the Gem Aromatics IPO, do not worry. Here are 10 important key points and an in-depth, detailed Gem Aromatics IPO review that will help you make the decision.
Strengths and Weaknesses of Gem Aromatics IPO
Strengths:
- Gem Aromatics is one of the growing and established manufacturers of specialty ingredients, which include essential oils, aroma chemicals, and Value-Added Derivatives in India.
- The company holds a long-standing relationship with well-established customers in India and globally.
- It is led by experienced promoters and a management team who have years of experience in the fragrance and flavor industry.
- Its Manufacturing facilities are strategically positioned with a strong emphasis on sustainability.
Weaknesses:
- In FY25, about 56.06% of the company’s revenue came from the top 10 customers. Losing customers can badly impact the company’s financial and cash flow.
- In FY25, FY24, and FY23, most of its revenue comes from the mint and mint derivative products, meaning any drop in the demand for these products can negatively impact the business, revenue, and profits.
- The company does not hold long-term contracts with the raw material suppliers, meaning that if they delay or fail to supply the raw materials as expected can badly impact the business, cash flow, and overall condition.
- Gem Aromatics mostly depends on its top 10 suppliers for raw materials. Losing any of them or if they fail to deliver could harm its revenue and profits.
Gem Aromatics IPO Details
| IPO Size: | ₹451.25 crores |
| Offer-for-sale: | up to 85,00,000 equity shares |
| Fresh issue: | ₹175 crores |
| Price band: | ₹309 to ₹325 |
| Subscription: | Opens on August 19, 2025, and the closing date is August 21, 2025 |
| Purpose of IPO: | Fresh Issue and Offer-for-Sale |
Gem Aromatics IPO Open and closing dates?
The Gem Aromatics IPO will open for subscription on August 19, 2025, and close on August 21, 2025.
What is the size of the Gem Aromatics IPO?
The company planned to raise around ₹451.25 crores in funds via an IPO. This IPO comprises only a fresh issue of ₹175 crores and an Offer-for-sale up to 85,00,000 equity shares, with a face value of ₹2 each.
What are the subscription details of the Gem Aromatics IPO?
The Gem Aromatics IPO price range is set at ₹309 to ₹325 per share. In this IPO, a total of 46 shares were available in 1 lot size for the minimum Retail category, and for the maximum retail category, 598 shares in 13 lot sizes were available. For the S-HNI Minimum category, 644 shares were available in 14 lot sizes. While for the B-HNI Minimum category, 3,082 shares were available in 67 lot sizes.
To invest in this IPO, each investor category has specific investment amounts:
- Retail Investors: Minimum investment of ₹14,950 and maximum investment of ₹1,94,350.
- Small HNI (S-HNI): Minimum investment of ₹2,09,300.
- Big HSI (S-HNI): A minimum investment of ₹10,01,650 is required.
What is the Gem Aromatics IPO listing Date?
Gem Aromatics is a Mainboard IPO shares will be listed on August 26, 2025, on the BSE (Bombay Stock Exchange) & NSE (National Stock Exchange).
What are the objectives of the Gem Aromatics IPO Issue?
The objective behind raising funds via a fresh issue is to utilize the funds for the prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings taken by our Company and our Subsidiary, Krystal Ingredients Private Limited. The remaining funds will be used to support the general corporate purposes of the company.
About Gem Aromatics
Incorporated in 1997, Gem Aromatics Limited is a prominent company engaged in the manufacturing of specialty ingredients such as essential oils, aroma chemicals, and Value-Added Derivatives in India. With over 20 years of experience in the fragrance and flavour industry, the company has established a wide range of products, including oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness, pain management, and personal care. Its product range includes 70 items across four categories: mint derivatives, clove derivatives, phenol, and other synthetic & natural ingredients. The company operates on a B2B model, selling through direct exports, its U.S. subsidiary Gem Aromatics LLC, and third-party agencies. Gem Aromatics serves markets in America, Asia, Africa, and Australia, with a customer base of 225, including 44 international clients spread across 18 countries in FY25.
Gem Aromatics IPO Financials
The company reported revenue of ₹506 crores in 2025 against ₹454 crores in 2024. The company reported a profit of ₹53.38 crores in 2025 against a Profit of ₹50.10 crores in 2024.
Gem Aromatics IPO Promoters
Vipul Parekh, Kaksha Vipul Parekh, Yash Vipul Parekh, and Parekh Family Trust are the promoters of the company.
Who are the Gem Aromatics IPO lead managers and registrar?
Motilal Oswal Investment Advisors Limited is the lead manager of Gem Aromatics, while KFin Technologies Limited is the registrar to the issue.
Should you apply or not for the Gem Aromatics IPO?
Whether or not to apply for the Gem Aromatics depends on various factors like your investment goals, risk appetite, the company’s background, and many more. Let’s take a short review of the company. Gem Aromatics is one of the prominent companies that manufactures specialty ingredients, including essential oils, aroma chemicals, and Value-Added Derivatives in India for over 20 years. The company has established its presence across 18 countries with a consistent focus on innovation through its R&D team. The years of experience, wide range of products, and strong brand recognition have helped them become a leader in several product categories. However, one must not ignore the risks the company holds, such as high dependence on specific product categories and top customers.
Now, if you ask whether you should apply or not for the Gem Aromatics IPO, then if you believe in the long-term growth potential, given the company’s strong presence in the fragrance and flavour industry, the IPO could be worth considering to invest in.
This implies that Gem Aromatics Limited may offer high returns and can provide excellent long-term gains. However, in the end, we always recommend doing a good financial background check on the company to avoid potential risks and losses. Please invest cautiously and at your own risk.
