The muted listing comes despite the grey market shares of Gem Aromatics trading with 10% premium, ahead of listing today.
“At the upper price band company is valuing at P/E of 31.8x to its FY25 earnings, with EV/EBITDA of 21.6x and market cap of ₹1,697.7 crore post issue of equity shares. We suggest investors to HOLD the issue as a long-term view on IPO according to their risk appetite,” said Narendra Solanki, Head of Fundamental Research, Investment Services, Anand Rathi Shares and Stock Brokers.The Mumbai-based company already mobilised over ₹135 crore from anchor investors. Citigroup Global, Societe Generale, Goldman Sachs, Nippon India Mutual Fund, SageOne, Nuvama, and Niveshaay Sambhav Fund participated in the anchor round.
The IPO included a mix of fresh issue of equity shares worth up to ₹175 crore and an offer for sale (OFS) of up to 85 lakh shares valued at ₹276.25 crore.Proceeds from the fresh issue will be used by Gem Aromatics for debt repayment and general corporate purposes.
Company overview
Gem Aromatics is a manufacturer of specialty ingredients in India, including essential oils, aroma chemicals, and value-added derivatives, with over two decades of experience. In FY25, the company supplied products to 225 customers domestically and 44 customers cumulatively across 18 foreign countries globally, including the Americas, Asia, Africa and Australia.
Its client portfolio includes names like Colgate-Palmolive, Dabur, Patanjali, SH Kelkar, Rossari Biotech, and Symrise, among others.
The company operates three advanced manufacturing facilities located in Uttar Pradesh, Dadra and Nagar Haveli, and Gujarat.
Gem Aromatics’ revenue from operations increased by 11% to ₹504 crore in fiscal 2025 from ₹452.45 crore in the previous fiscal, and profit rose 6.55% to ₹53.38 crore for fiscal 2025 from ₹50 crore in the preceding financial year.
