Gem Aromatics Limited IPO

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Gem Aromatics Limited is a well-established Indian manufacturer of specialty ingredients, including essential oils, aroma chemicals, and value-added derivatives, with a proven track record of over two decades. The company offers a diversified product portfolio ranging from “mother ingredients” to various value-added derivatives, catering to multiple industries such as oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness, pain management, and personal care.

Market Position

Gem Aromatics holds a leading position in India’s essential oil-based products, particularly those derived from mint, clove, eucalyptus, and other oils. It is among the largest processors of Piperita oil, DMO, Clove oil, Eugenol, and Eucalyptus oil in the country. In FY 2025, it had a 12% share in DMO and 65% share in Eugenol production by volume in India (Source: F&S Report).

Product Portfolio

The company manufactures and markets over 70 products under four main categories:

1. Mint and mint derivatives
2. Clove and clove derivatives
3. Phenol
4. Other synthetic and natural ingredients

The product range covers both domestic and export markets, and the company is also in the process of introducing citral-based products as part of its diversification.

Manufacturing and R&D Capabilities

Gem Aromatics operates three strategically located manufacturing facilities in Uttar Pradesh, Dadra and Nagar Haveli and Daman and Diu, and Gujarat, with a total installed capacity of 5,346 MTPA as of March 31, 2025.

Its in-house R&D team of 13 scientists works from a dedicated facility in Maharashtra, enabling advanced product development and customization. The company has expertise in complex chemistries (e.g., Grignard’s, Friedel-Crafts, cross-coupling) and advanced technologies such as continuous and high-pressure reactions, fixed-bed systems, and process automation.

Customer Base and Global Reach

The company has long-standing relationships with major domestic and global clients, including Colgate-Palmolive (India), Dabur India, Patanjali Ayurved, SH Kelkar, Rossari Biotech, Symrise, dōTERRA, Ventos So Brasil, and Anhui Hautian Spices.

In FY 2025, Gem Aromatics supplied products to 225 domestic customers and 44 international customers across 18 countries in the Americas, Asia, Africa, and Australia.

Awards and Recognition

Gem Aromatics has won multiple FIEO export excellence awards, including Gold (One Star Export House – MSME, 2017-18 & 2019-20) and Silver (Two Star Export House – MSME, 2020-21), and is recognized as a Three Star Export House by the DGFT.

Objects of the Gem Aromatics Limited IPO:

The Net Proceeds of the Fresh Issue are proposed to be utilised for the following objects: 1. Prepayment and/or repayment of all or a portion of outstanding borrowings (₹140 cr) 2. General corporate purposes.
DRHP of Gem Aromatics Limited IPO
RHP of Gem Aromatics Limited IPO

Gem Aromatics Limited IPO Details:

Open Date: Aug 19 2025
Close Date: Aug 21 2025
Total Shares: 1,38,84,615
Face Value: ₹ 2 Per Equity Share
Issue Type: Book Building
Issue Size: 451.25 Cr.
Lot Size: 46 Shares
Issue Price: ₹ 309-325 Per Equity Share
Listing At: NSE,BSE

Promoters And Management:

1. Vipul Parekh – Whole-Time Director & Chairman, associated since inception. Oversees project execution, capital expenditure, and HR. Also serves as Director at subsidiary Krystal Ingredients Pvt. Ltd. Brings over two decades of industry experience and has been instrumental in the company’s growth strategy. 2. Kaksha Vipul Parekh – Whole-Time Director & CFO, associated since inception. Manages accounts, finance, compliance, exports, and logistics. Former FIEO board member. Recipient of multiple ‘Export Excellence’ awards and ET’s ‘SME Activator’ recognition. Known for building strong operational systems and driving export growth. 3. Yash Vipul Parekh – Managing Director & CEO, with the company since 2011. Leads sales, marketing, procurement, R&D, and IT. Holds a B.Sc. in Business Administration from SUNY Buffalo and an IB diploma from The International School of Bangalore. Also a Director at Krystal Ingredients Pvt. Ltd. Recognized for spearheading new product launches and global market expansion.

Financials of Gem Aromatics Limited IPO:

Particulars FY 2024-25 FY 2023-2024 FY 2022-2023
Revenue from Operations 503.90 452.40 424.70
EBITDA 88.4 78.3 66.1
EBITDA Margins 17.55% 17.32% 15.58%
PAT 53.3 50.1 44.6
PAT Margins 10.56% 11.03% 10.51%
ROCE 16.02% 21.10% 22.85%
Debt to Equity Ratio(In Times) 0.78 0.36 0.44
Operating Cash Flows -24.9 40.1 15.3

Comparison With Peers:

Companies Revenue (in cr) EBITDA Margins PAT Margins ROCE D/E Ratio MCap (in cr) P/E
Gem Aromatics Limited 503.90 17.55% 10.56% 16.02% 0.78 1697.7 31.85
Clean Science and Technology Limited 992 43% 29.40% 29.20% 0 13,069 44
Privi Speciality Chemicals Limited 2101 22% 8.80% 16.40% 1.04 9,512 45.2
Camlin Fine Sciences Limited 1667 13% -9.40% 11.00% 76 3788 98
Yasho Industries Limited 676 17% 0.88% 7.35% 1.36 2097 172
S H Kelkar and Company Limited 2123 14% 3.40% 10.30% 0.65 3077 23.5
Oriental Aromatics Limited 935 10% 3.60% 7.89% 0.53 1109 46.5

Lead Manager of Gem Aromatics Limited IPO:

  1. Motilal Oswal Investments Advisors Private Limited

Registrar of Gem Aromatics Limited IPO:

  1. Kfin Technology Private Limited

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