Gem Aromatics Ltd.'s initial public offering (IPO) has garnered significant investor interest, achieving 2.9 times oversubscription on the second day of bidding. The mainboard issue, valued at Rs 451.25 crore, has seen robust demand across various investor categories.

IPO Details

The Gem Aromatics IPO comprises:

• A fresh issue of 54 lakh shares amounting to Rs 175 crore
• An offer-for-sale (OFS) component of 85 lakh shares worth Rs 276.25 crore

The public offering opened on August 19 and is set to close on August 21, with the tentative listing scheduled for August 26 on both the BSE and NSE.

Subscription Breakdown

The strong investor response is evident from the subscription data across different categories:

Grey Market Premium

The grey market is showing positive sentiment towards the Gem Aromatics IPO, with a premium of Rs 26. This implies a potential listing price of Rs 351 per share, representing an 8% premium over the issue price.

Utilization of Funds

Gem Aromatics plans to utilize the proceeds from the fresh issue for:

1. Prepayment or repayment of outstanding borrowings
2. General corporate purposes

Anchor Investment

Prior to the IPO opening, Gem Aromatics successfully raised Rs 135 crore from anchor investors, indicating strong institutional interest in the company.

The oversubscription and grey market premium suggest positive investor sentiment towards Gem Aromatics. However, investors should conduct their own research and consider their risk appetite before making investment decisions.

Gem Aromatics Ltd., a specialist in essential oils and aroma chemicals, is poised to launch its Initial Public Offering (IPO). The company aims to raise Rs 451.25 crore through this public issue, presenting an opportunity for investors interested in the fragrance and flavor industry.

IPO Structure and Pricing

The IPO comprises a fresh issue of Rs 175.00 crore and an offer-for-sale (OFS) component of Rs 276.25 crore. Gem Aromatics has set the price band for its shares between Rs 309.00 and Rs 325.00 per equity share. For retail investors, the minimum investment required is Rs 14,214.00.

Grey Market Premium

The grey market is showing positive sentiment towards the Gem Aromatics IPO. With a grey market premium of Rs 35.00, the estimated listing price stands at Rs 360.00 per share. This suggests potential listing gains of 10.77% for investors.

Company Profile and Financial Performance

Gem Aromatics specializes in producing essential oils, aroma chemicals, and their derivatives. The company caters to various industries including oral care, cosmetics, pharmaceuticals, and personal care.

The company's financial performance has shown growth in recent years:

This data indicates a year-on-year increase in both total income and profit after tax.

IPO Timeline

• Opening Date: August 19
• Closing Date: August 21
• Tentative Listing Date: August 26

The shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Investors interested in the fragrance and flavor industry may find this IPO worth considering. However, as with any investment decision, it's crucial to conduct thorough research and consider one's financial goals and risk tolerance before participating in the IPO.