Gem Aromatics IPO: Business overview, financials, key risks— 10 key things to know from RHP
The mainboard IPO is a combination of a fresh issue of 54 lakh shares and an offer for sale (OFS) of 85 lakh shares. The price band of the IPO has been fixed at ₹ 309 to ₹ 325 per share.
From the fresh issue of shares, the company aims to raise ₹ 175 crore, which it will use to prepay or repay certain outstanding borrowings and for general corporate purposes.
The company will not receive any proceeds from the OFS portion.
Motilal Oswal Investment Advisors is the book-running lead manager, while KFin Technologies is the registrar for Gem Aromatics IPO.
After the subscription window closes, the company is likely to finalise share allotment on Friday, August 22. Successful bidders may have the shares credited to their demat accounts on the next working day, i.e., Monday, August 25, while those who do not receive an allotment will get a refund on the same day.
Let's take a look at 10 key things to know from the Red Herring Prospectus (RHP) of the Gem Aromatics IPO:
Among the promoter selling shareholders, Vipul Parekh is selling 32,34,727 shares of the company at the face value of ₹ 2 each, while Kaksha Vipul Parekh is offloading 15,48,873 shares. Yash Vipul Parekh is selling 15,91,400 shares.
dōTERRA Enterprises, Sàrl is the investor selling shareholder, selling 21,25,000 shares in the OFS.
The company has four promoters: Vipul Parekh, Kaksha Vipul Parekh, Yash Vipul Parekh, and Parekh Family Trust. They aggregately hold 35,139,364 shares, equivalent to 75 per cent of the pre-offer issued, subscribed, and paid-up share capital of the company.
As per the RHP, the company's board comprises eight directors, of whom five are independent directors, including two women independent directors.
Vipul Parekh, 64, is the chairman and whole-time director of the company. Kaksha Vipul Parekh, 59, is the whole-time director and chief financial officer.
Yash Vipul Parekh, 38, is the managing director (MD) and chief executive officer (CEO) of Gem Aromatics.
As per the RH, Gem Aromatics is an Indian manufacturer of specialty ingredients, including essential oils, aroma chemicals, and value-added derivatives, with over 20 years of experience.
Its wide range of products — from base ingredients to advanced derivatives — is used in industries such as oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness, pain management, and personal care.
The company's revenue from operations and profit have seen gradual improvement over the last few financial years.
According to the RHP, in FY23, the company earned a revenue of ₹ 424.8 crore, which rose to 452.45 crore in FY24 and ₹ 504 crore in FY25.
Profit in FY23 was ₹ 44.67 crore, which increased to ₹ 50.10 crore in FY24 and to ₹ 53.38 crore in FY25.
Krystal Ingredients Private Limited is a subsidiary of Gem Aromatics. On the other hand, dōTERRA Global Limited and dōTERRA International LLC are the group companies.
Clean Science and Technology, Privi Speciality Chemicals, Camlin Fine Sciences, Yasho Industries, S H Kelkar and Company, and Oriental Aromatics are some of the major peers of the company.
Gem Aromatics highlighted in its RHP that the global chemicals market is valued at around $5,800 billion in 2025, which is expected to grow at a 4.4 per cent CAGR, reaching $7,200 billion by 2030.
India accounts for nearly 4.5 per cent market share in the global chemicals market.
The company said the APAC is anticipated to grow at the fastest rate during the forecast period (2024 - 29F). The chemical markets in Europe & North America are relatively mature and hence would record comparatively slower growth.
The company derives a significant portion of its revenue from its top 10 customers.
"In fiscal 2025, we derived 56.06 per cent of our total revenue from operations from our top 10 customers. The loss of any of these customers may adversely affect our revenues and profitability," said the company.
The company said in the RHP that the impact of the India-Pakistan conflict, Russia-Ukraine war, the Israel-Hamas war, and the Iran-Israel conflict on the global economy, energy supplies and raw materials is uncertain, but may prove to negatively impact its business and operations.
Read all IPO-related news here
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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