Gem Aromatics makes muted market debut

New Delhi, Aug 26 (PTI) Shares of Gem Aromatics, a speciality ingredients manufacturer, made a muted debut on the exchanges on Tuesday, with a premium of more than 2 per cent against the issue price of Rs 325.

The stock started trading at Rs 333.10 apiece, 2.49 per cent higher than the issue price on the NSE. Later, it jumped 7.57 per cent to hit a high of Rs 349.60.

On the BSE, shares made a flat market debut, listing at par with the issue price of Rs 325 apiece. It later climbed by 7.38 per cent to trade at Rs 349 on the exchange.

The company commanded a market valuation of Rs 1,771.62 crore on the NSE.

The initial public offer (IPO) of Gem Aromatics Ltd received 30.27 times subscription, which closed last Thursday.

The price band has been fixed at Rs 309 to Rs 325 per share.

The IPO is a mix of fresh issue of equity shares worth up to Rs 175 crore and an offer for sale (OFS) of up to 85 lakh shares valued at Rs 276.25 crore.

Proceeds from the fresh issue will be used by Gem Aromatics for debt repayment and general corporate purposes.

Gem Aromatics is a manufacturer of speciality ingredients, including essential oils, aroma chemicals, and value-added derivatives, with over two decades of experience.

Its client portfolio includes names like Colgate-Palmolive, Dabur, Patanjali, SH Kelkar, Rossari Biotech, and Symrise.

The company operates three advanced manufacturing facilities in Uttar Pradesh, Dadra and Nagar Haveli, and Gujarat. PTI HG HG SHW