Gem Aromatics Ltd. made a laskluster debut on the stock market on Tuesday, with shares listing at a premium of just 2.5% over its IPO price. The share price opened at Rs 333.1 apiece on the NSE and Rs 325 on the BSE. The IPO issue price was Rs 325.
In the run-up to the listing, the IPO's grey market premium signaled expectations of healthy gains for investors.
The initial public offering of Gem Aromatics was open for subscription from Aug. 19 to Aug. 21. The allotment of shares was finalised on August 22.
The Gem Aromatics IPO was a book-built issue of Rs 451.25 crore. It comprised a fresh issue of 54 lakh shares worth Rs 175 crore and an offer-for-sale (OFS) of 85 lakh shares worth Rs 276.25 crore. The price band for the IPO was set between Rs 309 and Rs 325 per share.
The IPO was booked 30.27 times on the third and final day of bidding. It received bids for 29,61,15,202 shares against 97,82,363 offered.
Qualified Institutional Buyers subscribed to the offer 55.28 times, and Non-Institutional Investors booked the issue 45.06 times. Retail investors subscribed to the issue 10.31 times.
Gem Aromatics will use proceeds from the fresh issue to clear debt and for general corporate purposes.
The company manufactures products such as essential oils and aroma chemicals. Its products are used in industries such as pharmaceuticals, cosmetics and personal care.
The latest GMP for the Gem Aromatics IPO was Rs 33, indicating a listing price of Rs 358 apiece at a premium of 10% on the upper limit of the price band, according to Investorgain.
The total market capitalisation stood at Rs 1,740 crore on the NSE.
GEM Aromatics listing ceremony. (Image: BSE)
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