Gem Aromatics IPO opens on August 19, price band fixed at ₹309-325 per share; check key details

Gem Aromatics will launch its ₹451.2-crore initial public offering (IPO) on August 19. The IPO will remain open for subscription till August 21. The IPO is a combination of a fresh issue and an offer-for-sale of over 1.38 crore shares.

Gem Aromatics is a manufacturer of speciality ingredients, including essential oils, aroma chemicals and value-added derivatives in India with a track record of over two decades. The products made by the company find application across a broad spectrum of industries, such as oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness and pain management and personal care. The company is one of the prominent essential oils and value-added derivatives makers based on value and volume manufactured, specialising in products that are derived from mint and clove oil.

Gem Aromatics IPO details

Gem Aromatics IPO aims to raise ₹451.2 crore through its public issue. The issue is 100% book-built and made up of a fresh issuance of 53.8 lakh shares worth ₹175 crore and an offer-for-sale (OFS) component worth ₹276.2 crore.

The company has fixed the price band of the issue at ₹309 to ₹325 per share. The lot size, or the minimum bid quantity to apply for the issue, is 46 shares. This equates to a minimum investment amount of ₹14,950 per lot at the upper end of the price band for retail investors.

Gem Aromatics has appointed Motilal Oswal Investment Advisors as the book-running lead managers of the IPO, while Kfin Technologies is the registrar for the issue.

Gem Aromatics IPO: Important dates

Gem Aromatics IPO will remain open for bidding from 19 to 21 August. After the bidding is closed, the allotment of shares is expected to be finalised on August 22.

Successful bidders can expect the shares to be credited to their demat accounts by August 25, with others receiving refunds on the same day. Gem Aromatics shares are scheduled to list on the BSE and NSE on August 26.

Gem Aromatics IPO objective

The money raised from the IPO will be used towards the following objectives:

• Repayment of loans: The company will utilise ₹140 crore towards repayment or prepayment of borrowings availed by the company and its subsidiary, Krystal Ingredients Private Limited
• General corporate purposes: Part of the IPO proceeds will be used for general corporate purposes.

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