Retail investors drive demand for Gem Aromatics IPO; subscription nears 2x

Business Standard

18 hours ago

Gem Aromatics IPO subscritpion status: Retail investors are leading the demand for the initial public offering (IPO) of specialty ingredients manufacturer Gem Aromatics (Gem Aromatics IPO) on the second day of its subscription, Wednesday, August 20, 2025. This is closely followed by non-institutional investors (NIIs), and qualified institutional buyers (QIBs).
According to BSE data, the Gem Aromatics IPO has been oversubscribed by 1.78 times by 12:42 PM on Wednesday. Among the individual categories, retail investors and NIIs have oversubscribed the categories reserved for them by 2.05 times and 1.93 times, respectively. QIBs, on the other hand, have oversubscribed the category reserved for them by 1.18 times.
Gem Aromatics IPO details
Gem Aromatics seeks to raise ₹451.25 crore from the public offering, which comprises an entirely fresh issue of 5.4 million equity shares worth ₹175 crore, and an offer for sale (OFS) of 8.5 million equity shares, aggregating up to ₹276.25 crore.
Gem Aromatics IPO is being offered at a price band of ₹309-325 per share, with a lot size of 46 shares. To bid for a minimum of one lot or 46 shares of the Gem Aromatics IPO, a retail investor would need a minimum of ₹14,950 (considering the upper price band). A retail investor can bid for a maximum of 13 lots or 598 shares of Gem Aromatics with an investment amount of ₹1,94,350.
Gem Aromatics IPO grey market premium (GMP) today
The unlisted shares of Gem Aromatics continue to command a decent premium in the grey market on the second day of its subscription.
Sources tracking unofficial market activities revealed that Gem Aromatics shares were trading at around ₹351 per share, reflecting a grey market premium (GMP) of ₹26 or 8 per cent over the upper end of the issue price.
Gem Aromatics IPO review
The company has received favorable reviews from brokerages for its public offering. Analysts at Swastika Investmart have suggested that investors subscribe to the Gem Aromatics IPO, while those at Anand Rathi Research have recommended bidding for the issue from a long-term perspective. READ MORE
Gem Aromatics IPO allotment date, listing date
The three-day subscription window to bid for the public issue is set to close on Thursday, August 21, 2025. Following that, the basis of allotment of Gem Aromatics IPO shares is likely to be finalised on Friday, August 22, 2025. The successful allottees will receive the company's shares in their demat accounts tentatively by Monday, August 25.
Shares of Gem Aromatics are scheduled to list on BSE SME, tentatively on Tuesday, August 26, 2025.
Gem Aromatics IPO registrar, lead manager
For the public offering of Gem Aromatics, KFin Technologies serves as the registrar, while Motilal Oswal Investment Advisors is the sole book-running lead manager.
Gem Aromatics IPO objective
According to the Red Herring Prospectus (RHP), Gem Aromatics will not receive any proceeds from the OFS. The proceeds will be allocated to each of the selling shareholders, after deducting the offer-related expenses and relevant taxes.
Gem Aromatics, however, proposes to utilise the proceeds from the fresh issue for the prepayment and/or repayment, in full or in part, of certain outstanding borrowings availed by the company and its subsidiary, Krystal Ingredients. The company will further deploy the proceeds for general corporate purposes.
About Gem Aromatics
Gem Aromatics is a manufacturer of specialty ingredients, including essential oils, aroma chemicals, and value-added derivatives in India, with a track record of over two decades. The company offers a diversified portfolio of products, ranging from Mother Ingredients to various Value-Added Derivatives. Its products find applications across a broad spectrum of industries, such as oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness and pain management, and personal care.