New Delhi, 26 August (Kiran News). Shares of Gem Aromatics, a company engaged in manufacturing aroma chemicals and value-added derivatives, showed strength after a flat entry in the stock market today, bringing cheer to its IPO investors. The company had issued its shares at ₹325 per share through the IPO. On the BSE, the stock was listed at ₹325 without any change, while on the NSE, it was listed at ₹333.10, showing a slight increase. Following the listing, buying activity pushed the share price up. By 11 am, Gem Aromatics shares were trading at ₹342.95, providing IPO investors a gain of 6.65 percent so far.
Gem Aromatics’ ₹451.25 crore IPO was open for subscription from 19 to 21 August and received a good response from investors, with an overall subscription of 30.45 times. The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 53.76 times. The Non-Institutional Investors (NII) segment saw 45.96 times subscription. The retail investors’ portion was subscribed 10.49 times. Under this IPO, new shares worth ₹175 crore were issued. Additionally, 85 lakh shares with a face value of ₹2 each were sold through the offer-for-sale window. The funds raised from the new shares will be used by the company to reduce the debt of its subsidiary, Crystal Ingredients, meet working capital requirements, and for general corporate purposes.
According to the prospectus, Gem Aromatics’ financial health has continued to strengthen. In the financial year 2022-23, the company posted a net profit of ₹44.67 crore, which increased to ₹50.10 crore in 2023-24, and further rose to ₹53.38 crore in 2024-25. During this period, the company’s revenue grew at a compound annual growth rate (CAGR) of over 9 percent, reaching ₹505.64 crore. However, the company’s debt also increased, standing at ₹89.36 crore at the end of FY 2022-23, rising to ₹111.13 crore by the end of FY 2023-24, and surging to ₹222.37 crore by the end of FY 2024-25.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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