Gem Aromatics IPO Subscribed 1.6 Times on Day 2 of Bidding

Market Performance

The Gem Aromatics IPO has witnessed strong investor participation, with the issue being subscribed 1.6 times by the second day of bidding on August 20, 2025.

• Total bids received: 1.6 crore shares
• Offer size: 97.82 lakh shares
• Retail Investors: Subscribed nearly 2 times
• Non-Institutional Investors (NII): Booked 1.6 times
• Qualified Institutional Buyers (QIBs): Fully subscribed their portion

Main News

The ₹451 crore public issue of Gem Aromatics opened for bidding on August 19 and will close on August 21, 2025. Investors showed healthy interest across categories, with robust demand from retail participants.

The IPO consists of:

• Fresh issue: ₹175 crore
• Offer-for-sale: 85 lakh shares by existing shareholders, including Doterra Enterprises, which currently holds a 25% stake.

The company has fixed a price band of ₹309–₹325 per share, with a minimum application of 46 shares, translating to an investment of ₹14,950 at the upper band.

Company Details

Headquartered in Mumbai, Gem Aromatics is engaged in the manufacturing of specialty ingredients such as essential oils, aroma chemicals, and value-added derivatives.

• The company offers 70 products across four major categories:
  1. Mint and mint derivatives
  2. Clove and clove derivatives
  3. Phenol-based ingredients
  4. Synthetic and natural specialty products
• Operations are supported by three manufacturing facilities.
• As of June 2025, the company and its subsidiaries reported total borrowings of ₹259.8 crore.
• From the IPO proceeds, Gem Aromatics intends to allocate ₹140 crore for debt repayment, with the remaining funds directed toward general corporate purposes.

A day before the issue opened, on August 18, 2025, Gem Aromatics raised ₹135.4 crore from 13 institutional investors via its anchor book. Major participants included Citigroup Global, Societe Generale, Goldman Sachs, Nippon India, SageOne, Nuvama, and Niveshaay Sambhav Fund.

Summary

The Gem Aromatics IPO has attracted strong response in the first two days of bidding, reflecting significant investor confidence. With its price band set at ₹309–₹325, the issue aims to raise over ₹451 crore through a mix of fresh equity and an offer-for-sale.

The IPO will close on August 21, 2025, with allotment expected by August 22. Shares are likely to list on the stock exchanges on August 26, 2025.