Gem Aromatics Soars: Anchor Investors Inject Rs 135.4 Crore Ahead of Highly Anticipated IPO

In a powerful display of investor confidence, Gem Aromatics (India) Ltd has successfully secured a remarkable Rs 135.4 crore from its anchor investors. This significant fundraising milestone comes just ahead of its Initial Public Offering (IPO), signaling robust market interest in the specialty chemicals manufacturer.

The anchor book, which opened for a single day on December 18, 2023, witnessed enthusiastic participation from a diverse group of 11 prominent institutional investors.

Among the key players who placed bids were leading names such as Quant Mutual Fund, Edelweiss Mutual Fund, and ICICI Prudential Life Insurance Company, underscoring the strong belief in Gem Aromatics' growth trajectory and financial stability.

The IPO itself is set to open for public subscription from December 19 to December 21, 2023, offering a fresh issue of 41 lakh equity shares and an offer for sale (OFS) of 14.99 lakh equity shares by existing shareholders.

The company has fixed the price band for the offering at Rs 295 to Rs 310 per equity share, with a minimum lot size of 48 shares. At the upper end of the price band, the total IPO size is poised to reach Rs 174.45 crore, aiming to fuel its expansion ambitions.

Gem Aromatics plans to strategically deploy the net proceeds from the fresh issue.

A substantial portion will be allocated towards enhancing its working capital requirements, ensuring operational efficiency and flexibility. The remaining funds are earmarked for general corporate purposes, allowing the company to seize new opportunities and reinforce its market position.

The company, a significant player in the aroma and specialty chemicals sector, is known for its wide array of products used across various industries, including flavors, fragrances, and pharmaceuticals.

Its strong fundamentals and innovative product portfolio have positioned it as an attractive investment opportunity. Gretex Corporate Services Private Ltd and Beeline Capital Advisors Pvt Ltd are acting as the book-running lead managers for the issue, while KFin Technologies Ltd is the registrar. The shares are proposed to be listed on both the BSE and NSE, promising broader accessibility for investors.

This impressive anchor book performance sets a positive precedent for Gem Aromatics’ public offering, indicating a strong likelihood of oversubscription and a promising debut on the stock exchanges.

Investors are keenly watching as the company embarks on this pivotal phase of its growth journey.