Gem Aromatics shares list at 2% premium over IPO price

Gem Aromatics shares debuted on Tuesday with a muted listing performance. The stock opened at Rs 333.10 on the NSE, offering a slight premium over its issue price of Rs 325, while it listed flat on the BSE. In the grey market, shares of Gem Aromatics traded at a 9% premium ahead of the debut, hinting at expectations of a modestly positive listing.

The Rs 451.25 crore IPO, which ran from August 19 to 21, consisted of a fresh issue of Rs 175 crore and an offer for sale worth Rs 276.25 crore. The allotment was finalised on August 22.

The issue witnessed strong investor interest, with an overall subscription of 30.45 times. Qualified Institutional Buyers (QIBs) led the demand with 53.76 times subscription, followed by Non-Institutional Investors (NIIs) at 45.96 times, while the retail portion was subscribed 10.49 times.

The IPO proceeds will primarily be used to repay borrowings worth Rs 140 crore and for general corporate purposes.

Founded in 1997, Gem Aromatics is a manufacturer of speciality ingredients, including essential oils, aroma chemicals, and value-added derivatives.

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Its products are widely used in sectors such as oral care, pharmaceuticals, nutraceuticals, wellness, and personal care, with a customer base spanning 18 countries.

Financially, the company reported an 11% increase in revenue to Rs 505.64 crore and a 7% rise in profit after tax to Rs 53.38 crore in FY25. At the upper end of the price band, the IPO valued the company at a market capitalization of about Rs 1,698 crore.

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