Gem Aromatics Ltd's IPO listed on the market on August 26th after receiving a fantastic response from investors. On the NSE, the share opened at ₹325, a 2.5% premium, while on the BSE, it listed at the issue price of ₹325. The IPO was subscribed a total of 30.45 times, with b interest from QIB and HNI investors.
Gem Aromatics Ltd IPO: Gem Aromatics Ltd, a company that manufactures essential oils and aroma chemicals, listed its IPO on the NSE and BSE on August 26, 2025. The IPO received a b response from investors and was subscribed 30.45 times. The QIB category was subscribed 53 times and the HNI portion 45 times, while the retail investors' portion was filled 10.49 times. Despite this, the share listed on the NSE with only a 2.5% premium at ₹325 and remained at the issue price on the BSE. The company will use these funds to repay debt and for corporate needs.
Excellent Subscription, but Listless Listing
The IPO received a tremendous response. The issue was open for investment between August 19th and August 21st. According to exchange data, bids were received for a total of 29.59 crore shares for the IPO worth ₹451 crore. This number was far greater than the 97.19 lakh shares offered. As a result, the IPO was subscribed 30.45 times. The Qualified Institutional Buyers (QIB) category was oversubscribed by 53 times. The Non-Institutional Investors category was filled 45 times. Retail investors also showed b interest, and this portion was subscribed 10.49 times.
Company's Business Model
Gem Aromatics is a well-known manufacturer of essential oils, aroma chemicals, and other specialty materials in India. The company has over two decades of experience. Its product portfolio is very broad, ranging from foundation ingredients to high-value derivatives. These products are used in areas such as oral care, cosmetics, nutraceuticals, pharmaceuticals, healthcare, pain relief, and personal care.
The company recorded stable performance in fiscal year 2025. Revenue increased by 11 percent. At the same time, net profit increased by 7 percent. These figures show that the company's business is continuously improving and its demand remains b in many sectors. This is the reason why investors participated enthusiastically in the IPO.
Use of Funds Raised from the IPO
The company will use the funds raised from the IPO to reduce its debt. In particular, some outstanding borrowings of Gem Aromatics and its subsidiary Crystal Ingredients Private Limited will be prepaid. In addition, the funds raised will also be used for general corporate operations. This is expected to further strengthen the company's financial position.
IPO Enthusiasm Vanished on Listing
Based on the kind of enthusiasm seen during the IPO, investors expected a good premium on listing. But the market sentiment appeared a little calm on the first day. The slight premium on the NSE and the stable listing on the BSE surprised many investors. However, experts believe that the company's business model and b demand could put it in a better position in the long term.
Gem Aromatics in Investors' Discussions
On the first day of listing, Gem Aromatics became a part of investors' discussions. On the one hand, the company is being praised for the excellent subscription, while on the other hand, the modest returns on listing have also raised questions. Market experts say that despite the initial volatility, the company's brand value and business expansion could strengthen its position in the coming times.
