Jay Ambe Supermarkets IPO: Unpacking the Retail Investment Opportunity
In the dynamic landscape of India's retail sector, where growth is driven by evolving consumer preferences and increasing purchasing power, new opportunities frequently emerge for investors. Jay Ambe Supermarkets Ltd., known for its "City Square Mart" brand, is stepping into the spotlight with its upcoming SME IPO. This offering aims to fuel the expansion of its supermarket chain across Gujarat and beyond. For those considering an investment in the burgeoning retail space, a detailed look into this IPO is essential. Let's explore the key aspects of Jay Ambe Supermarkets and what this public offering entails.
Introducing Jay Ambe Supermarkets: A Glimpse into City Square Mart
Established in 2020, Jay Ambe Supermarkets Limited has swiftly carved a niche in the retail market through its franchise model, operating under the "City Square Mart" brand. Launched in August 2018 in Gandhinagar, City Square Mart has strategically expanded its presence to 17 stores across Gujarat, focusing on delivering a wide array of products to its customers.
Product Offerings: Catering to Every Household Need
The company’s retail outlets are designed to be a one-stop shop, providing an extensive selection that includes:
- Diverse FMCG items, encompassing both food and non-food essentials.
- A wide range of packed and loose groceries for daily consumption.
- Various household and general merchandise products.
- Selected consumer durables, luggage, and home textiles.
- Apparel for men, women, and children, along with footwear.
- Gift articles, toys, stationery, and imitation jewelry.
As of March 31, 2025, the company sustains a workforce of 132 individuals, with 115 permanent employees stationed across its various locations.
IPO Milestones: Your Definitive Timeline
For investors planning to participate, keeping track of the key dates is paramount. Here is the tentative schedule for the Jay Ambe Supermarkets IPO:
IPO Journey Progress
IPO Overview: The Key Numbers
| Detail | Information |
|---|---|
| Issue Type | Bookbuilding Issue |
| Total Issue Size | 23,64,800 shares (₹18.45 Crores) |
| Face Value | ₹10 per share |
| Price Band | ₹74 to ₹78 per share |
| Listing Exchange | BSE SME |
Application Specifics: Lot Sizes and Investment
Investors should be aware of the minimum and maximum investment thresholds for various categories:
| Investor Category | Min. Lots | Shares | Amount (at ₹78/share) |
|---|---|---|---|
| Retail Individual Investor (Min) | 2 | 3,200 | ₹2,49,600 |
| Retail Individual Investor (Max) | 2 | 3,200 | ₹2,49,600 |
| Small HNI (Min) | 3 | 4,800 | ₹3,74,400 |
| Small HNI (Max) | 8 | 12,800 | ₹9,98,400 |
| Big HNI (Min) | 9 | 14,400 | ₹11,23,200 |
Purpose of the Issue: Where Your Investment Goes
The net proceeds from the IPO are slated for several strategic initiatives aimed at strengthening and expanding the company's operations:
- Acquiring an existing store in Nana Chiloda, Ahmedabad, to enhance market presence.
- Funding the fit-outs for three new stores, indicating future growth and geographical reach.
- Meeting essential working capital requirements to support day-to-day operations and growth.
- Allocating funds for general corporate purposes, providing flexibility for unforeseen strategic needs.
Decoding the Financial Performance: Strength in Numbers
Jay Ambe Supermarkets has demonstrated robust financial growth over recent years, a critical factor for any potential investor.
Financial Highlights (Amounts in ₹ Crore)
From FY 2024 to FY 2025, the company's revenue surged by 42%, while its Profit After Tax (PAT) witnessed an impressive 78% increase, showcasing strong operational efficiency and market acceptance.
| Metric (Period Ended) | Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 |
|---|---|---|---|
| Assets | 26.78 | 22.02 | 16.79 |
| Total Income | 47.40 | 33.41 | 32.69 |
| Profit After Tax (PAT) | 2.75 | 1.55 | 0.35 |
| EBITDA | 4.99 | 3.16 | 1.24 |
| Net Worth | 13.57 | 7.55 | 3.09 |
| Total Borrowing | 8.71 | 8.56 | 7.47 |
Key Performance and Valuation Metrics (as of Mar 31, 2025)
With a market capitalization of ₹69.26 Crores, here are other vital metrics:
| Metric | Value |
|---|---|
| Return on Equity (ROE) | 26.07% |
| Return on Capital Employed (ROCE) | 24.12% |
| Debt/Equity Ratio | 0.64 |
| Return on Net Worth (RoNW) | 20.29% |
| PAT Margin | 5.82% |
| EBITDA Margin | 10.53% |
| Price to Book Value | 6.20 |
| Pre-IPO EPS (Rs) | 4.23 |
| Post-IPO P/E (x) | 25.15 |
Leadership and Shareholding Structure
Jay Ambe Supermarkets is steered by a dedicated team of promoters: Jignesh Amratbhai Patel, Harshal Daxeshkumar Patel, Bhikhabhai Shivdas Patel, and Rutwijkumar Maganbhai Patel. Their vision has been pivotal in the company's journey and growth.
Promoter Holding: A Snapshot
| Holding Stage | Percentage |
|---|---|
| Pre-Issue Promoter Holding | 71.51% |
| Post-Issue Promoter Holding | 52.46% |
IPO Share Allocation Breakdown
The issue has been structured to include various investor categories:
| Investor Category | Shares Offered | Percentage |
|---|---|---|
| Market Maker | 1,18,400 | 5.01% |
| Qualified Institutional Buyers (QIB) | 11,21,600 | 47.43% |
| Non-Institutional Investors (NII) | 3,37,600 | 14.28% |
| Retail Individual Investors (RII) | 7,87,200 | 33.29% |
| Total Shares Offered | 23,64,800 | 100.00% |
Strategic Assessment: A SWOT Analysis
A thorough evaluation of Jay Ambe Supermarkets Ltd. involves looking at its internal strengths and weaknesses, alongside external opportunities and threats.
Strengths
- Strong Vendor Network: Well-established relationships with suppliers ensure a consistent and diverse product supply.
- Extensive Product Assortment: Offering a wide variety of goods appeals to a broad customer base, enhancing market penetration.
- Experienced Management: A capable leadership team with deep industry knowledge guides strategic decisions and operations.
- Customer-Friendly Policies: A transparent refund policy fosters trust and builds customer loyalty.
- Proven Financial Track Record: Consistent profitability and revenue growth demonstrate operational efficiency and market acceptance.
Weaknesses
- Valuation Concerns: The IPO's pricing, when compared to current earnings, appears somewhat aggressive, potentially limiting immediate capital appreciation.
- Geographic Concentration: A primary focus on Gujarat markets means susceptibility to regional economic shifts or competitive pressures.
- SME Platform Liquidity: Listing on the SME exchange may result in lower trading volumes and liquidity compared to mainboard listings, impacting ease of exit for investors.
- Franchise Model Reliance: Growth and brand consistency are partially dependent on the performance and adherence of individual franchisees.
Opportunities
- Expanding Organized Retail Market: India's vast and underserved non-metro markets offer significant potential for organized retail expansion.
- Strategic Expansion Initiatives: IPO proceeds specifically allocated for new stores and working capital provide a clear roadmap for future growth.
- Digital Adoption: Leveraging e-commerce platforms and digital loyalty programs can enhance customer engagement and reach.
- Enhancing Private Labels: Developing and promoting private label products could improve margins and brand differentiation.
Threats
- Intense Competition: Facing strong competition from both established large-format retailers and emerging online players.
- Economic Downturns: Macroeconomic factors such as inflation or reduced consumer spending can directly impact sales volume and profitability.
- Supply Chain Vulnerabilities: Disruptions in the supply chain due to external factors can lead to stockouts and increased operational costs.
- Regulatory Changes: Evolving government policies and retail sector regulations could affect business models and expansion plans.
How to Apply: Your Guide to Participating in the IPO
Prospective investors can easily subscribe to the Jay Ambe Supermarkets IPO through their existing demat-cum-trading account. The most common methods involve applying online via UPI or ASBA through your bank's net banking portal.
**Typical Application Process:**
- Access your broker's platform or your bank's net banking service.
- Locate the "IPO" or "Invest in IPO" section.
- Select "Jay Ambe Supermarkets IPO" from the list of current public issues.
- Input your investor category, desired bid quantity (in multiples of the lot size), and the price within the band. For UPI applications, enter your UPI ID.
- Confirm and submit your application.
- For UPI-based applications, ensure you authorize the payment mandate on your UPI app before the deadline.
Upon successful application, funds equivalent to your bid amount will be blocked in your account. If shares are allotted, the amount will be debited, and the shares credited to your demat account. Unallotted funds will be unblocked.
In Conclusion: Weighing the Investment
The Jay Ambe Supermarkets IPO offers an intriguing opportunity to invest in a growing retail chain with a proven track record in Gujarat. The company's consistent financial performance, strong management, and strategic expansion plans are notable positives. However, investors should also consider the potentially aggressive valuation and the inherent characteristics of an SME listing, which might include lower liquidity compared to mainboard shares.
For those with a well-informed perspective on the retail sector and an appetite for long-term investments, this IPO could be a valuable addition to their portfolio. As always, it is advisable to conduct thorough due diligence and consult with a financial professional to align any investment decision with your personal financial goals and risk tolerance.
Company & Registrar Details
For further information or inquiries, you may contact:
- Jay Ambe Supermarkets Ltd. Corporate Office:
A001, Shubh Vivid, Por Kudasan,
Village- Kudasan, Gandhinagar,
Gujarat, 382421
Phone: +916358027675
Email: cs@citysquaremart.com - Registrar to the Issue: MUFG Intime India Pvt.Ltd.
Email: jayambe.smeipo@in.mpms.mufg.com - Lead Manager: Beeline Capital Advisors Pvt.Ltd.
- Market Maker: Spread X Securities Pvt.Ltd.