Gem Aromatics' IPO closes today, August 21, oversubscribed at 2.90 times. Retail investors bid 3.19 times their quota, while NIIs showed strongest interest at 3.95 times. Priced at Rs 309-325 per share, the IPO aims to raise Rs 451.25 crore.
The initial public offering (IPO) of Gem Aromatics Ltd, a well-known manufacturer of essential oils and aroma chemicals, is entering its final day of subscription today, August 21. Investor interest has been strong since the issue opened earlier this week, and the IPO is already oversubscribed.
Subscription Status: Strong Demand Across Categories
By the end of August 20, data from the NSE showed that the IPO had been subscribed 2.90 times overall. Investors applied for 2.83 crore shares compared to the 97.82 lakh shares available.
Retail investors subscribed 3.19 times the allotted quota.
Non-Institutional Investors (NIIs) showed the highest enthusiasm, booking 3.95 times.
Qualified Institutional Buyers (QIBs) came in at 1.54 times.
This diverse interest reflects confidence in the company’s growth story across all segments of the market.
Price, Lot Size, and Issue Details
The IPO price band has been fixed at Rs 309–Rs 325 per share. Retail investors need a minimum investment of Rs 14,214 for a lot of 46 shares. At the upper end of the price band, the company expects to raise Rs 451.25 crore.
The issue includes a fresh issue of Rs 175 crore through 53.84 lakh shares and an offer-for-sale (OFS) worth Rs 276.25 crore through 85 lakh shares.
Grey Market Premium (GMP): Signs of Healthy Sentiment
In the unlisted market, Gem Aromatics is drawing attention with a grey market premium (GMP) of Rs 26 per share on the final day. This suggests that shares are trading at Rs 351 apiece, about 8% higher than the IPO’s upper price band. While not sky-high, the premium indicates solid demand and cautious optimism among investors.
What Analysts Say
Brokerages remain upbeat about the IPO, citing Gem Aromatics’ leadership in the fragrance and flavor (F&F) ingredients segment, diversified product portfolio, and expansion plans.
- Anand Rathi recommends Subscribe – Long Term, valuing the stock at a P/E of 31.8x on FY25 earnings.
- BP Equities believes the IPO is fairly valued and highlights the company’s strong distribution network and growth visibility.
- SBI Securities calls the valuation attractive compared to peers, even though the business is working capital heavy.
Key Dates for Investors
- IPO closes: August 21
- Allotment date: August 22
- Listing date: August 26 (BSE and NSE)
