Synopsis: Gem Aromatics listed flat despite strong IPO subscription and grey market buzz, while Shreeji Shipping managed a modest premium over issue price. Both debuts fell short of market expectations.
The primary market saw a mixed response today as Gem Aromatics and Shreeji Shipping made their stock market debuts. While both IPOs witnessed strong subscription, their listings delivered only muted to modest gains compared to the grey market expectations.
Gem Aromatics: Quiet Market Entry
Shares of Gem Aromatics opened at ?333.10 on NSE, marginally higher than its issue price of ?325, while it listed flat on the BSE. This came as a surprise, given the 9 percent grey market premium prior to listing.
The ?451.25-crore IPO (?175 crore fresh issue + ?276.25 crore OFS) saw an overall subscription of 30.45 times, driven by robust interest from institutional investors: QIBs subscribed at 53.76x, NIIs at 45.96x, and retail investors at 10.49x.
The company plans to use proceeds primarily to repay ?140 crore of debt and for corporate purposes. Established in 1997, Gem Aromatics specializes in essential oils, aroma chemicals, and derivatives used in personal care, pharma, wellness, and nutraceuticals, with a footprint across 18 countries.
For FY25, the firm reported ?505.64 crore in revenue (+11%) and ?53.38 crore PAT (+7%), pegging its IPO valuation around ?1,698 crore.
Shreeji Shipping: Modest Gains
In contrast, Shreeji Shipping fared slightly better, listing at ?271.85 on BSE (8% premium) and ?270 on NSE (7% premium) versus its issue price of ?252. However, this too trailed the 11–13.5 percent grey market premium that traders had anticipated.
The ?411-crore IPO, entirely a fresh issue, was subscribed 58 times between August 19–21, underscoring strong demand from investors.
Market Sentiment
Analysts believe the softer listing gains reflect cautious sentiment in the secondary market despite heavy oversubscription during the IPO phase. With both companies fundamentally strong, market experts suggest that long-term investors may continue to hold positions, while traders might wait for price stability.
Disclaimer: This article is for informational purposes only and not investment advice. Market investments are subject to risks, and investors should consult financial advisors before making decisions.
