Jay Ambe Supermarkets Debuts on Stock Market with Impressive 64x Oversubscribed IPO
Jay Ambe Supermarkets, a Gujarat-based retail chain, launched its IPO at Rs 74-78 per share, raising Rs 18.45 crore. The IPO was oversubscribed 64.13 times, with retail investors oversubscribing 71.39 times, non-institutional investors 110.24 times, and QIBs 16.79 times. The Grey Market Premium suggests a potential 10% gain on listing day. The company operates 17 'City Square Mart' stores in Gujarat and reported a revenue of Rs 47.40 crore (42% growth) and net profit of Rs 2.75 crore (78% growth). IPO proceeds will be used for store acquisition, new store fit-outs, and working capital requirements.
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Jay Ambe Supermarkets, a Gujarat-based retail chain operator, made its stock market debut today following a highly successful Initial Public Offering (IPO). The company's Rs 18.45 crore IPO, priced at Rs 74-78 per share, garnered significant investor interest, resulting in an oversubscription of 64.13 times.
Strong Investor Response
The IPO saw robust demand across various investor categories:
- Retail investors: 71.39 times oversubscribed
- Non-institutional investors: 110.24 times oversubscribed
- Qualified Institutional Buyers (QIBs): 16.79 times oversubscribed
Listing Day Performance
The Grey Market Premium indicates a potential listing price of around Rs 85-86 per share, suggesting an approximate 10% gain for investors on the first day of trading.
Company Overview
Jay Ambe Supermarkets operates 17 stores under the 'City Square Mart' brand across Gujarat, utilizing a franchise model. The company has shown strong financial performance:
| Financial Metric | Value | Growth |
|---|---|---|
| Revenue | Rs 47.40 crore | 42.00% |
| Net Profit | Rs 2.75 crore | 78.00% |
| PAT Margin | 5.82% | Improved |
IPO Proceeds Utilization
The company plans to use the funds raised from the IPO for:
- Purchasing a store in Nana Chiloda, Ahmedabad
- Financing fit-outs for three new stores
- Meeting working capital requirements
This strategic allocation of funds aims to support the company's expansion plans and operational needs in the competitive retail sector.
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