Understanding Shariah Compliance in IPOs and Stocks:
Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Gem Aromatics Ltd (GEMAROMA), ensuring that your investment choices are not only profitable but also ethical.
Table of Contents
Analyzing The Company
Company Name: Gem Aromatics Ltd
Industry: Specialty Chemicals
Listing At: NSE & BSE (Mainboard)
Overview:
With a track record spanning decades, this established manufacturer of specialty ingredients, including essential oils and aroma chemicals, holds several leadership positions within its diverse product portfolio. The company’s brand recognition and broad product range are a clear testament to its success.
The company’s commitment to quality, sustainability, and customer satisfaction has resulted in enduring customer relationships. Their expertise in delivering essential oils and aromatic chemicals to both domestic and global customers is a cornerstone of their business, fueling a continued focus on product innovation and maintaining their market standing.
Shariah Status
The IPO is Non-Shariah Compliant, please see below image.
Additional Considerations:
When opting for Shariah-compliant investments, it is essential to regularly check the status in our App. This ensures that the evolving nature of businesses or other financial data does not compromise the compliance status of your investments.
IPO Timeline (Tentative Schedule)
| IPO Open Date | Tue, Aug 19, 2025 |
| IPO Close Date | Thu, Aug 21, 2025 |
| Tentative Allotment | Fri, Aug 22, 2025 |
| Initiation of Refunds | Mon, Aug 25, 2025 |
| Credit of Shares to Demat | Mon, Aug 25, 2025 |
| Tentative Listing Date | Tue, Aug 26, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 21, 2025 |
Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 46 | ₹14,950 |
| Retail (Max) | 13 | 598 | ₹1,94,350 |
| S-HNI (Min) | 14 | 644 | ₹2,09,300 |
| S-HNI (Max) | 66 | 3,036 | ₹9,86,700 |
| B-HNI (Min) | 67 | 3,082 | ₹10,01,650 |
Financials
Gem Aromatics Ltd.’s financials, while showing some growth, reflect a relatively modest performance with concerning trends. Revenue increased only 11% in FY 2025 compared to FY 2024, far below the pace seen in many growing industries. Profit after tax rose just 7% year-on-year, indicating limited efficiency improvements. Borrowings more than doubled from ₹111.13 crore in 2024 to ₹222.37 crore in 2025, raising questions about debt reliance. Although net worth and reserves improved.
KPI
| KPI | Values |
|---|---|
| ROE | 18.80% |
| ROCE | 16.02% |
| Debt/Equity | 0.78 |
| RoNW | 18.80% |
| PAT Margin | 10.56% |
| EBITDA Margin | 17.55% |
| Price to Book Value | 5.36 |
LINKS
Ready to invest in Shariah-compliant opportunities? Explore more at IslamicStock & consider opening a demat account from the below link!
- Open Demat Account:
- Visit our Website: www.IslamicStock.in
- Read our Blog: blog.islamicstock.in
- Download our App:
SEBI Disclaimer
Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.