Jay Ambe Supermarkets' IPO made a subdued entry on BSE SME but reached an upper circuit of ₹82.95. The ₹18.45 crore raised through the IPO will be utilized for purchasing an existing store in Ahmedabad, fitting out three new stores, working capital, and other corporate purposes. The company's financial performance has been consistently b.
IPO Listing: Jay Ambe Supermarkets, which sells FMCG and retail products under the 'City Square Mart' brand, listed its IPO on BSE SME at an issue price of ₹78. In early trading, the shares opened at ₹79 and, showing momentum, reached an upper circuit of ₹82.95, giving investors a listing gain of up to 6.35%. The ₹18.45 crore raised through the IPO will be used for purchasing the Ahmedabad store, fitting out three new stores, working capital, and corporate purposes.
IPO Received Tremendous Response
Jay Ambe Supermarkets' IPO, for ₹18.45 crore, was open from September 10 to 12. It received an excellent response from investors and was subscribed 64.13 times overall. This included a subscription of 16.79 times for Qualified Institutional Buyers, 110.24 times for Non-Institutional Investors, and 71.39 times for retail investors. A total of 23,64,800 new equity shares with a face value of ₹10 were issued under the IPO.
Utilization of Funds Raised from IPO
The company will utilize the funds raised from the IPO for several significant plans. Of this, ₹4.25 crore will be for the purchase of an existing store located in Nana Chiloda, Ahmedabad; ₹4.63 crore will be for fitting out three new stores; and ₹4.50 crore will be for working capital requirements. The remaining amount will be used for general corporate purposes.
Company's Business Model
Jay Ambe Supermarkets was established in 2020. It sells FMCG goods, groceries, home textiles, home decor, apparel, toys, gift items, footwear, and other household items through its supermarkets. The company operates its retail marts through a franchise model. Franchisees sell its products under the 'City Square Mart' brand after paying an initial fee and an annual license fee. Currently, the company has 17 stores in Gujarat.
Company's Financial Position
The company's financial position has been consistently b. Net profit was ₹35 lakh in FY2023, which increased to ₹1.55 crore in FY2024 and reached ₹2.75 crore in FY2025. During the same period, the company's total income grew at a compounded annual growth rate of 20% to ₹47.40 crore.
The company's debt was ₹7.47 crore at the end of FY2023, which rose to ₹8.56 crore in FY2024 and ₹8.71 crore in FY2025. Along with this, reserves and surplus also increased. It was ₹1.36 crore in FY2023, ₹5.55 crore in FY2024, and reached ₹7.06 crore in FY2025.
Investor Gains on Share Listing
At the time of the IPO listing, the share opened at ₹79 and quickly rose to an upper circuit of ₹82.95. This provided investors with a 6.35% gain right from the initial listing. According to market experts, the strength of this IPO and the investor response reflect the company's growth plans and financial health.
