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Gem Aromatics Ltd, a maker of special ingredients for consumer and personal care products, saw its INR 451 crore public offering get fully bought up on its first day of bidding on August 19. The public offering, which has a price range of INR 309 to INR 325 per share, received bids for 1.03 times the shares on offer, with a lot of interest from both individual and institutional investors. The company plans to use the money mostly for paying back debt and for general company needs. This good demand shows investor trust in the specialty chemicals sector, a key part of India's growing economy, and Gem Aromatics' strong market spot as a specific type of player with many different clients, including industry leaders like Dabur and Colgate-Palmolive.
The initial public offering (IPO) of Gem Aromatics Ltd, a leading manufacturer of specialty ingredients, was fully subscribed on its opening day on August 19, signaling robust investor confidence in India's specialty chemicals sector. The INR 451 crore issue, which will remain open until August 21, saw bids for more than 1 crore shares against the 97.82 lakh shares on offer. The retail investor portion was subscribed 1.08 times, while the Qualified Institutional Buyers (QIBs) segment received a 1.05 times subscription. The non-institutional investors (NII) category also saw strong momentum, with an 88% subscription. Advertisement
The IPO, with a price band of INR 309 to INR 325 per share, is a combination of a fresh issue of up to INR 175 crore and an offer-for-sale (OFS) of up to 85 lakh shares. The funds raised from the fresh issue will be strategically utilized for the repayment of debt and for general corporate purposes, which will help strengthen the company's balance sheet and reduce its financial leverage.
Gem Aromatics operates in the niche aroma chemicals and essential oils market, which is a crucial sub-segment of India's specialty chemicals industry. The company has over two decades of experience and a diversified portfolio of products, including mint and clove derivatives, which are essential inputs for consumer goods. Its customers include major domestic and international brands such as Colgate-Palmolive, Dabur, Patanjali, and SH Kelkar. The company's financial performance has been consistent, with revenues rising to INR 504 crore in fiscal year 2025 and profit after tax reaching INR 53.38 crore.
The positive response to the IPO reflects a broader trend of investor interest in the specialty chemicals sector. As India's cosmetics, pharmaceuticals, and personal care industries continue to expand, so does the demand for key ingredients supplied by companies like Gem Aromatics. The company's strong fundamentals and stable margins, coupled with its market leadership in certain product categories like Eugenol and Eucalyptus oil, have made it an attractive proposition for investors seeking exposure to this high-growth sector.
Source- PTI
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