Jay Ambe Supermarkets IPO Key Dates
| Anchor Investor Subscription | |
| IPO opens on | 10 Sept. 2025 |
| IPO Closes on | 12 Sept. 2025 |
| Allotment on | 15 Sept, 2025 |
| Credit of shares on | 16 Sept. 2025 |
| Tentative Listing on | 17 Sept. 2025 |
Jay Ambe Supermarkets IPO Condenses Verdict
Jay Ambe Supermarkets Ltd. has shown strong topline growth with Total Income rising from Rs.32.69 cr (FY23) to Rs.47.40 cr (FY25) and PAT improving from Rs.0.35 cr to Rs.2.75 cr during the same period. However, very high inventories (Rs.18.95 cr vs. monthly sales of Rs.3.94 cr) raise questions on working capital management. Also, the sharp fall in cost of material ratio from 79.85% to 73.79% may not be sustainable going forward. While expansion and brand recognition (City Square Mart) are positives, investors must be cautious about inventory levels and margin sustainability.
Final Subscription Tally
| Size Rs. 18.45 Crore | ||||
| QIB | NII x | RII x | Total x | Applications |
| Subscription Review: |
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About Jay Ambe Supermarkets
Incorporated in 2020, Jay Ambe Supermarkets Ltd. is engaged in the business of retailing a wide range of FMCG and household products through its chain of supermarkets. The company’s product basket includes FMCG food & non-food items, groceries (packed & loose), household merchandise, consumer durables, luggage, home textiles, garments for men, women & kids, footwear, toys, stationery, gift articles, imitation jewellery and more.
The company follows a franchisee model, wherein franchise partners operate retail marts under the “City Square Mart” brand by paying initial and annual licensing fees. The first City Square Mart was launched in August 2018 at Kudasan, Gandhinagar and within just six years, the network has expanded to 17 stores across Gujarat.
As on 31 March 2025, Jay Ambe Supermarkets employed a workforce of 132 employees – including 115 permanent staff across various locations and 17 outsourced personnel from security agencies.
Jay Ambe Supermarkets IPO Details
|
Sector: Retail sector |
|
| IPO opens on | 10 September 2025 |
| IPO closes on | 12 September 2025 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 23,64,800 Shares / Rs 18.45 Crore |
| * Fresh Issue | – |
| * Offer for Sale – | – |
| Market Maker Portion | 118,400 Shares |
| Net offer to Public | 22.46.400 Shares Rs. 17.52 Crores |
| Face Value per share | Rs. 10 |
| Price Band | Rs. 74 |
| Employee discount | Rs. 0 per share |
| Retail Lot Size | 1600 Shares |
| Listing will at | BSE SME |
How shares are being offered
| Investor Category | Shares Offered |
| Market Maker Shares Offered | 1,18,400 (5.01%) |
| QIB Shares Offered | 11,21,600 |
| NII (HNI) Shares Offered | 3,37,600 (14.28%) |
| Retail Shares Offered | 7,87,200 (33.29%) |
| Total Shares Offered | 23,64,800 (100.00%) |
| Application | Lots | Shares | Amount Rs. |
| Retail (Min) | 2 | 3,200 | 2,49,600 |
| Retail (Max) | 2 | 3,200 | 2,49,600 |
| S-HNI (Min) | 3 | 4,800 | 3,74,400 |
| S-HNI (Max) | 8 | 12,800 | 9,98,400 |
| B-HNI (Min) | 9 | 14,400 | 11,23,200 |
Who are the Promoters of Jay Ambe Supermarkets IPO?
The promoters hold 71.51% of the pre-IPO capital
What are the Objects of Jay Ambe Supermarkets IPO?
The Company proposes to utilize the Net Proceeds from Issue towards funding the following objects
+Purchase of existing store of the company located at Nana Chiloda, Ahmedabad Rs. 4.25 Crore
+Purchase of fit-outs for Three (3) new stores Rs. 4.63 Crore
+To Meet Working Capital Requirements Rs. 4.50 Crore
+General Corporate purposes
Jay Ambe Supermarkets IPO Lead Managers
Beeline Capital Advisors Pvt ltd
| Registered Office of the Company |
| Jay Ambe Supermarkets Ltd. A001, Shubh Vivid, Por Kudasan, Village- Kudasan, Gandhinagar Gandhinagar, Gujarat, 382421 Email: cs@citysquaremart.com |
| Who is the Registrar to the IPO? MUFG Intime India Pvt.Ltd. |
Jay Ambe Supermarkets Financials Snapshot
| Period Ended | 31-Mar-25 | 31-Mar-24 | 31-Mar-23 |
| Assets | 26.78 | 22.02 | 16.79 |
| Total Income | 47.4 | 33.41 | 32.69 |
| Profit After Tax | 2.75 | 1.55 | 0.35 |
| EBITDA | 4.99 | 3.16 | 1.24 |
| Net Worth | 13.57 | 7.55 | 3.09 |
| Reserves and Surplus | 7.06 | 5.55 | 1.36 |
| Total Borrowing | 8.71 | 8.56 | 7.47 |
| Amount in Rs. Crore | |||
Performance Indicators
| KPI | Values |
| ROE | 26.07% |
| ROCE | 24.12% |
| Debt/Equity | 0.64 |
| RoNW | 20.29% |
| PAT Margin | 5.82% |
| EBITDA Margin | 10.53% |
| Price to Book Value | 6.2 |
| EPS | 4.23 |
| PER | 18.45 |
How Jay Ambe Supermarkets IPO compares with the Peers?
| Company Name | P/E (x) | RoNW (%) |
| Jay Ambe Supermarkets | 20.51 | |
| Osia Hyper Retail | 17 | 4.97 |
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Jay Ambe Supermarkets IPO Review
by Paresh Gordhandas, CA & Research Analyst
Financial Performance:
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Total Income increased from Rs.32.69 cr (FY23) → Rs.33.41 cr (FY24) → Rs.47.40 cr (FY25), reflecting healthy growth.
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Profit After Tax improved significantly from Rs.0.35 cr (FY23) → Rs.1.55 cr (FY24) → Rs.2.75 cr (FY25), showing better profitability.
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EBITDA rose to Rs.4.99 cr in FY25, up from just Rs.1.24 cr in FY23, signaling operating margin improvement.
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Net Worth expanded sharply from Rs.3.09 cr (FY23) to Rs.13.57 cr (FY25).
Concerns:
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Inventories at Rs.18.95 cr (FY25) are nearly 5x of monthly sales, indicating stretched working capital and raising concerns about efficiency.
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The decline in cost of material ratio from 79.85% (FY23) to 73.79% (FY25) is unusually sharp. Unless the company sustains favorable procurement or pricing power, margins may normalize in the future.
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Borrowings remain at Rs.8.71 cr (FY25), showing continued dependence on debt financing.
Business Model Strength:
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Operates under the “City Square Mart” brand, with 17 stores in Gujarat within six years.
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Offers wide range of FMCG, garments, household items, toys, textiles, etc., giving it diversification benefits.
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Franchise model supports asset-light growth but depends heavily on franchisee efficiency.
Chanakya View:
The company is in an expansion phase and has delivered topline growth with improving margins, but the high inventory levels and unusual margin jump need careful monitoring. Conservative investors should weigh risks before applying.
The company operates supermarkets under the City Square Mart brand, retailing FMCG, garments, household items, toys, textiles, footwear, and more.
It reported Total Income of ₹47.40 cr and PAT of ₹2.75 cr in FY25, with consistent year-on-year growth.
The company holds very high inventories and its material cost ratio has sharply declined, raising doubts about long-term margin sustainability..
As of March 31, 2025, Jay Ambe operates 17 stores across Gujarat under the City Square Mart brand.
Working capital stress due to large inventories, dependence on franchisees, and uncertainty in maintaining low cost ratios.
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