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India’s largest procurer of Piperita oil and the largest processor of DMO, Clove Oil, Eugenol, and Eucalyptus Oil
MUMBAI, Dec 30 (The CONNECT) – Specialty ingredients specialist Gem Aromatics Limited has filled its draft red herring prospectus (DRHP) with the market regulator, Securities and Exchange Board of India (SEBI), to raise funds through an Initial Public Offering (IPO).
Gem Aromatic makes specialty ingredients such as essential oils, aroma chemicals and value-added derivatives with a track record of over two decades
Its IPO with a face value of Rs 2 is a mix of fresh issue of shares of up to Rs. 175 crore and an offer for sale (OFS) of up to 89,24,274 equity shares each by Promoter and Investor Selling Shareholders.
Offer of Sale consists of shareholders selling shares up to 33,96,187 equity shares by Vipul Parekh, up to 16,26,183 equity shares by Kaksha Vipul Parekh, up to 16,70,835 equity shares by Yash Vipul Parekh, and up to 22,31,069 equity shares by dōTERRA Enterprises, Sàrl.
Motilal Oswal Investment Advisors Limited is the sole book-running lead manager and KFin Technologies Limited is the registrar to the issue. The equity shares are proposed to be listed on the BSE Limited and National Stock Exchange of India Limited.
The company, in consultation with the BRLMS, may consider a pre-IPO placement for an amount of aggregating up to Rs. 35 crore. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.
The proceeds from the fresh issue to the extent of Rs. 140 crore for prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the Company and its Subsidiary, Krystal Ingredients Private Limited; and general corporate purposes.
The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual investors respectively.
Its roots in the industry date back to 1915, providing a solid foundation to capitalize on the growing market demand, according to a F&S Report mentioned in the DRHP.
The company began its operations in Fiscal 1999, focusing on mint and mint derivatives such as spearmint and piperita. To diversify its offerings, Gem Aromatics ventured into the production of clove and clove derivatives in 2009. Over the years, it has built a diverse product portfolio ranging from base ingredients to value-added derivatives. These products cater to industries like oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness, pain management, and personal care.
Gem Aromatics is recognized as one of India’s leading manufacturers of essential oils and value-added derivatives by volume and value, specializing in products derived from mint and clove oil. The company holds a dominant position in essential oil-based products and derivatives such as mint, clove, eucalyptus, and other oils. Notably, it is the India’s largest procurer of Piperita oil and the largest processor of DMO, Clove Oil, Eugenol, and Eucalyptus Oil in India as of FY 2024.
With robust in-house manufacturing and R&D capabilities, Gem Aromatics has consistently delivered high-quality products and launched innovative solutions. It offers 70 products across four categories: mint and mint derivatives, clove and clove derivatives, phenol, and other synthetic and natural ingredients. The company has earned the “Three Star Export House” status, awarded by the Directorate General of Foreign Trade, Ministry of Commerce and Industry, Government of India.
In 2019, dōTERRA Enterprises invested in Gem Aromatics, initially sourcing spearmint and piperita. Over the past three fiscal years and the six-month period ending September 30, 2024, the company has supplied 18 products to dōTERRA Global Limited. Its client portfolio includes leading names like Colgate-Palmolive, Dabur, Patanjali, SH Kelkar, Rossari Biotech, and Symrise, among others. Gem Aromatics serves 170 domestic customers and 30 international clients across 13 countries, spanning the Americas, Asia, Africa, and Australia.
The company operates three advanced manufacturing facilities located in Budaun (Uttar Pradesh), Silvassa (Dadra and Nagar Haveli), and Dahej (Gujarat). It also has a dedicated R&D facility in Maharashtra, supported by a team of 15 scientists. This facility is instrumental in driving technological advancements and optimizing formulations for value-added derivatives.
By leveraging its rich legacy, innovative capabilities, and strategic partnerships, Gem Aromatics Ltd is poised to continue its leadership in the specialty ingredients industry while driving sustainable growth.
Revenue from operations increased by 6.51% to ₹ 452.45 crore in Fiscal 2024 from ₹ 424.79 crore in Fiscal 2023. Profit for the fiscal 2024 was ₹ 50.10 crore as compared to ₹ 44.67 crore for Fiscal 2023.
For the six months ended September 30, 2024, revenue from operations stood at Rs. 204.89 crore and profit after tax stood at Rs. 18.32 crore.
