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Gem Aromatics initial public offering (IPO) is all set to open for subscription today, Tuesday, August 19. The mainboard IPO will remain open for bidding till Thursday, August 21.

On August 18, the Mumbai-based essential oil manufacturer raised ₹135.37 crore from anchor investors ahead of IPO opening. Gem Aromatics has allotted 41,65,383 equity shares — over 41 lakh shares with a face value of ₹2 each — to anchor investors at a price of ₹325 per share, the company disclosed in a BSE filing. Leading participants in the anchor round ahead of the IPO included Citigroup Global, Societe Generale, Goldman Sachs, Nippon India, SageOne, Nuvama, and Niveshaay Sambhav Fund.

Established in October 1997, Gem Aromatics Limited has over 20 years of expertise in producing specialty ingredients in India, including essential oils, aroma compounds, and value-added derivatives. Its diverse product portfolio spans from Mother Ingredients to advanced Value-Added Derivatives.

Subscription for the public issue will open at 10:00 IST during Tuesday's deals.

Brokerage firm Swastika Investmart has given ‘ subscribe - May Apply for listing gain and Long term’ rating to the Gem Aromatics IPO. “ The company specializes in manufacturing aroma chemicals, specialty ingredients, and value-added derivatives. It has demonstrated consistent growth in both revenue and profitability over the reported periods. Strong customer relationships and repeat business support its operations. Valuations appear to be on the higher side based on recent financials. Agressive investors may consider allocating limited funds with a long-term perspective and Listing gain," it said.

Meanwhile, Canara Bank Securities, while giving ‘subscribe’ rating said, “The company has established itself in a niche domain and has cracked mint and mint derivatives category with an aspiration to move to other categories. The issue is fairly priced at 29X PE and 5X PB as compared to 99X PE and 5X PB average of its listed peers. However, pending litigations on the key manufacturing facility in Budaun remains a concern. We recommend SUBSCRIBE the issue for investors with high-risk appetite.”

Gem Aromatics’ IPO, valued at ₹451.25 crore, is a book-built issue comprising two components — a fresh issue of 0.54 crore shares worth ₹175.00 crore and an offer for sale of 0.85 crore shares amounting to ₹276.25 crore.

The price band for the IPO has been fixed between ₹309 and ₹325 per share.

The application lot size is set at 46 shares. Based on the lot size and price band, the minimum retail investment amounts to ₹14,214 (46 shares). For small NIIs, the requirement is 14 lots (644 shares) valued at ₹2,09,300, while for large NIIs, it is 67 lots (3,082 shares) worth ₹10,01,650.

The Gem Aromatics IPO is scheduled to be listed on both the BSE and NSE, with a tentative listing date of August 26, 2025.

Motilal Oswal Investment Advisors Ltd. is acting as the book-running lead manager, and Kfin Technologies Ltd. has been appointed as the registrar for the issue.

Financially, Gem Aromatics Ltd. reported an 11% growth in revenue and a 7% increase in net profit for the fiscal year ended March 31, 2025, compared with the year ended March 31, 2024.

The grey market premium (GMP) for Gem Aromatics IPO stands at +28, suggesting that its shares were trading at a premium of ₹28 in the grey market, as per investorgain.com.

Based on the upper end of the IPO price band and the prevailing GMP, the estimated listing price is projected at ₹353 per share, which is about 8.62 per cent higher than the IPO price of ₹325.

Over the past 12 sessions, grey market trends have shown steady momentum, and today’s GMP points towards a strong listing. Experts noted that the GMP ranged between a minimum of ₹0.00 and a maximum of ₹41 during this period.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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