Gem Aromatics IPO: Issue subscribed over 2.5x on day 2; check category-wise status

Until 2:19 PM, the initial share sale received bids for 20,745,218 shares as compared to 9,782,363 shares on offer, as per exchange data.

The category for non-institutional investors (NIIs) fetched the highest booking with 2.52 times the subscription, while the quota for retail individual investors (RIIs) received 2.46 times subscription. The portion for Qualified Institutional Buyers (QIBs) garnered 1.19 times of booking.

The ₹451.25 crore initial share sale, with a price band of ₹309 to ₹325 per share, aims to raise ₹175 crore through the issuance of new equity shares and ₹276.25 crore via the offer for sale (OFS) component.

Under the OFS, promoters Vipul Parekh, Yash Vipul Parekh, Kaksha Vipul Parekh and dōTERRA Enterprises, Sàrl will be divesting their stake.

Proceeds from the fresh issue will be used for general corporate purposes and debt repayment.

An application size consists of one lot or 46 shares.

Before the IPO, the speciality ingredients manufacturer collected ₹135.37 crore from anchor investors, including Citigroup Global, Goldman Sachs, Societe Generale, Nippon India Mutual Fund, Nuvama, SageOne, and Niveshaay Sambhav Fund.

The allotment status of the Gem Aromatics IPO is likely to be finalised on August 22, while the listing on the NSE and the BSE will occur on August 26.

Gem Aromatics makes speciality ingredients, including aroma chemicals, essential oils, and value-added derivatives. Its manufacturing facilities are located in Uttar Pradesh, Gujarat, and Dadra and Nagar Haveli.

Its client portfolio includes names such as Colgate-Palmolive, Patanjali, SH Kelkar, Dabur, Rossari Biotech, and Symrise, among others.

Motilal Oswal Investment Advisors is the lone book-running lead manager of the issue, while KFin Technologies serves as the registrar.