Jay Ambe Supermarkets Launches Rs 18.45 Crore IPO with 14% Grey Market Premium
Jay Ambe Supermarkets, a Gujarat-based retail chain, has opened its IPO to raise Rs 18.45 crore. The company is offering 23.65 lakh fresh equity shares priced between Rs 74 to Rs 78 per share. The SME issue closes on September 12, with listing on BSE SME platform scheduled for September 17. Jay Ambe operates 17 City Square Mart stores across Gujarat through a franchise model. The company's revenue grew by 42% and net profit by 78% in FY25. Funds will be used for store acquisition, new store fit-outs, working capital, and general corporate purposes. The grey market shows a 14% premium, indicating potential listing gains.
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Jay Ambe Supermarkets, a Gujarat-based retail chain, has opened its Initial Public Offering (IPO) to raise Rs 18.45 crore. The company is offering 23.65 lakh fresh equity shares priced between Rs 74 to Rs 78 per share. This Small and Medium Enterprise (SME) issue is set to close on September 12, with the listing on the BSE SME platform scheduled for September 17.
Company Profile
Jay Ambe Supermarkets operates 17 City Square Mart stores across Gujarat through a franchise model. The company, incorporated in 2020, offers a wide range of products including FMCG goods, groceries, textiles, and household items. With a workforce of 132 employees, including 115 permanent staff, the company has quickly established itself in the retail sector.
Financial Performance
The company has demonstrated strong financial growth:
| Metric | FY25 | Growth |
|---|---|---|
| Revenue | 47.40 | 42.00 |
| Net Profit | 2.75 | 78.00 |
This robust performance underscores the company's potential in the competitive retail market.
IPO Details
- Issue Size: Rs 18.45 crore
- Price Band: Rs 74 - Rs 78 per share
- Lot Size: 23.65 lakh fresh equity shares
- Subscription Period: Closes on September 12
- Listing Date: September 17 (BSE SME platform)
Use of Proceeds
The funds raised from the IPO will be allocated towards:
- Purchasing an existing store in Ahmedabad
- Fitting out three new stores
- Working capital requirements
- General corporate purposes
Market Sentiment
The grey market is showing a positive response to the IPO, with a premium of 14%. This indicates potential listing gains of Rs 10-11 per share, reflecting investor confidence in the company's prospects.
Strengths and Risks
Key Strengths:
- Strong vendor relationships
- Early profitability achievement
- Established presence in Gujarat
Potential Risks:
- Geographic concentration in Gujarat
- Reliance on single-brand franchise structure
Investors are advised to carefully consider these factors when making investment decisions.
As Jay Ambe Supermarkets takes its first step into the public market, the retail sector will be watching closely to see how this Gujarat-based chain performs in its stock market debut.
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