Mumbai-based Gem Aromatics, a prominent manufacturer of aromatic chemicals and essential oils, has filed its draft red herring prospectus (DRHP) with SEBI for an initial public offering (IPO).
IPO Details
- Fresh Issue: ₹175 crore worth of equity shares
- Offer-for-Sale (OFS): 89.24 lakh shares by promoters and investor shareholders
- Pre-IPO Placement: The company may raise up to ₹35 crore before the IPO launch, reducing the fresh issue size by the same amount.
Shareholding Structure
- doTerra Enterprises (USA): Holds 25% stake since 2019
- Promoters (Parekh family): Own 75% stake
Use of IPO Proceeds
- Debt Reduction: ₹140 crore will be allocated to reduce the company’s borrowings, which stood at ₹153.6 crore as of October 2024.
- General Corporate Purposes: Remaining funds will be used for business growth and other expenses.
Business Overview
Gem Aromatics is a leading manufacturer of essential oils and derivatives derived from mint and clove oils. These products are widely used in industries such as:
- Oral care
- Cosmetics
- Nutraceuticals
- Pharmaceuticals
- Wellness and pain management
- Personal care
Key Customers
The company caters to several top-tier clients, including:
- doTerra Global: Contributed 18.89% of fiscal 2024 revenue
- Colgate Palmolive India
- Dabur India
- Patanjali Ayurved
- Rossari Biotech
- SH Kelkar
- Ventos So Brasil Eireli
Merchant Banker
Motilal Oswal Investment Advisors has been appointed as the sole merchant banker for the IPO.
This IPO will not only help Gem Aromatics significantly reduce its debt but also pave the way for further expansion in India’s growing essential oils and aromatic chemicals market.
