Jay Ambe Supermarkets, the operator of the City Square Mart retail chain, is set to launch its IPO on the BSE SME platform between 10 – 12 September 2025. With 17 stores spread across 96,876 sq. ft. in Gujarat, the company has built a fast-growing supermarket brand catering to everyday essentials, apparel, home textiles, toys, footwear, and general merchandise. Let’s get into City Square Mart IPO review, business model, financials, strengths and whether it’s worth investing in.
The IPO, priced in the range of INR 74–78 per share, aims to raise INR 17.5–18.45 crore through a fresh issue of 23.64 lakh equity shares. Proceeds will be used for store acquisition, setting up three new stores, and meeting working capital needs. Backed by experienced promoters and a scalable franchise strategy, the company presents an interesting case study in regional retail expansion with a strong FMCG backbone.
Table of Contents
City Square Mart IPO Review: Company Overview
City Square Mart started in 2016 as Jay Ambe Trading, a partnership firm and then got incorporated as Jay Ambe Supermarkets. The company is into retail trading of fast moving consumer goods (FMCG), groceries, apparel, footwear, home décor, household items, toys and gift articles. Our stores are positioned as one-stop supermarkets offering wide range of products at affordable prices to cater to diverse customer segments – from families buying daily essentials to fashion conscious youth buying apparel and accessories.
Under the leadership of Mr. Jignesh Amratbhai Patel who has over 19 years of experience with global and national supermarket chains like Tesco, Sainsbury’s, HUL, Star Bazaar and Osia, the company has successfully merged customer centricity with operational efficiency. By using technology, vendor partnerships and customer friendly approach City Square Mart has become a trusted brand in Gujarat retail landscape.
Jay Ambe Supermarkets IPO Analysis: Business Model
City Square Mart follows a multi-format retail model, where they have direct company operations and franchise partnerships to balance growth and capital efficiency.
- COCO (Company Owned, Company Operated) – Stores owned and managed by the company, where the company has full control over operations and customer experience.
- FOCO (Franchise Owned, Company Operated) – The franchisee provides the capital for the store and the company manages the day to day operations. In return the company earns a percentage of monthly sales per sq. ft., this model is asset light and performance driven.
- FOFO (Franchise Owned, Franchise Operated) – The franchisee invests and manages the operations and the company earns through upfront franchise fees and royalties on sales.
This hybrid structure allows Jay Ambe to expand rapidly without excessive capital expenditure, while still maintaining a recurring stream of fee-based revenues.
Procurement & Supply Chain Management
The company has tie ups with 1700+ suppliers and manufacturers, sources directly from producers and authorized distributors, mostly on advance or cash on delivery basis. This ensures cost efficiency, supply reliability and favorable payment terms. Procurement is centralized at Gandhinagar head office where demand trends and customer preferences are closely monitored through an ERP driven SKU coding system.
- Core categories (FMCG, Dairy, Frozen Foods, Grocery, Staples) are tracked using unique EAN barcodes directly from manufacturers.
- Non-core categories (household, home textile, footwear, toys, luggage, etc.) are assigned unique internal SKUs for billing, reporting, and analytics.
This technological backbone allows real-time inventory tracking, sales analysis, and procurement planning, reducing stockouts, pilferage, and overstocking risks.
City Square Mart IPO Analysis: Products & Revenue Streams
1. Product Portfolio
City Square Mart positions itself as a family-centric supermarket catering to both essential and lifestyle needs. Its wide assortment enables it to attract multiple customer segments under one roof:
- FMCG (Core Segment): Food & Non-Food items, groceries (packed and loose), dairy, frozen foods, beverages, spices, personal care, home care.
- Apparels & Footwear: Men’s, women’s, and kids’ garments, ethnic and western wear, lingerie, blazers, branded wear, footwear across categories.
- Household & General Merchandise: Utensils, crockery, plastics, home décor, imitation jewelry, toys, stationery, travel bags, luggage.
- Home Textiles & Furnishings: Bedsheets, curtains, towels, mattresses, carpets, home covers.
- Fresh Produce: Fruits and vegetables.
This diversified portfolio ensures cross-selling opportunities (e.g., groceries + kitchenware + home décor) and helps City Square Mart mitigate risks of over-dependence on a single category.
2. Revenue Mix – Product Segments
| Segment | FY 2023 | (%) | FY 2024 | (%) | FY 2025 | (%) |
|---|---|---|---|---|---|---|
| FMCG | 25.61 | 78.35 | 24.59 | 73.61 | 36.14 | 76.25 |
| Apparels & Footwear | 2.61 | 8.00 | 6.03 | 18.04 | 5.67 | 11.95 |
| General Merchandise | 4.14 | 12.67 | 2.21 | 6.63 | 4.88 | 10.29 |
| Other Operating Income | 0.32 | 0.98 | 0.55 | 1.65 | 0.67 | 1.41 |
| Total Revenue | 32.69 | 100 | 33.39 | 100 | 47.35 | 100 |
3. Revenue Mix – Geographic Spread
| City | FY 2023 | (%) | FY 2024 | (%) | FY 2025 | (%) |
|---|---|---|---|---|---|---|
| Gandhinagar | 18.76 | 57.39 | 18.44 | 55.17 | 24.05 | 50.74 |
| Ahmedabad | 8.77 | 26.83 | 6.16 | 18.43 | 12.08 | 25.48 |
| Visnagar | 4.32 | 13.21 | 4.61 | 13.81 | 6.47 | 13.64 |
| Himmatnagar | 0.84 | 2.56 | 2.64 | 7.90 | 3.76 | 7.93 |
| Bhuj | – | – | – | – | 1.00 | 2.10 |
| Anand | – | – | 1.54 | 4.61 | – | – |
| Total | 32.69 | 100 | 33.69 | 100 | 47.35 | 100 |
Jay Ambe Supermarkets IPO Review: Competitive Strengths
City Square Mart leverages a few distinct strengths that allow it to punch above its weight:
- Strong Vendor Network: Over 1,700 direct suppliers, ensuring reliable supply, better negotiation terms, and cost advantages.
- Diverse Product Range: Attracts families, professionals, and value shoppers; opens cross-selling opportunities.
- Experienced Management: Led by Jignesh Patel (ex-Tesco, Sainsbury’s, HUL, Star Bazaar), backed by a strong senior team across supply chain, retail, and technology.
- Customer-Centric Policies: Refund-friendly environment builds trust and repeat purchase behavior.
- Consistent Financial Track Record: Revenue CAGR >20% in FY23–25, margin expansion, and rising profitability.
Jay Ambe Supermarkets IPO Analysis: Financial Performance
| Particulars | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenue from Operations | 32.69 | 33.69 | 47.35 |
| Expenses | 32.24 | 31.29 | 43.58 |
| PAT | 0.35 | 1.55 | 2.75 |
| PAT Margin (%) | 1.08 | 4.64 | 5.82 |
| RoE (%) | 15.18 | 29.10 | 26.07 |
| RoCE (%) | 12.32 | 21.34 | 24.12 |
| EBITDA Margin (%) | 3.80 | 9.47 | 10.53 |
| Debt/Equity | 2.41 | 1.13 | 0.64 |
| Number of Stores | 10 | 10 | 15 |
| Permanent Employees | 65 | 110 | 115 |
Key Takeaway:
- Topline growth has been strong, with a jump from INR 32.69 crore (FY23) to INR 45.35 crore (FY25).
- EBITDA margins expanded significantly (3.8% → 10.5%), showing operational efficiency and procurement discipline.
- PAT margins improved to 5.8% in FY25, highlighting scalability.
- Return ratios (RoE >25%, RoCE >24%) are impressive for a regional retailer.
- Debt/Equity ratio fell sharply (2.41 → 0.64), indicating deleveraging and improved financial health.
Utilization of IPO Proceeds
| Purpose | Amount (INR Cr.) |
|---|---|
| Acquisition of Nana Chiloda Store | 4.25 |
| Fit-outs for 3 New Stores | 4.63 |
| Working Capital | 4.50 |
| General Corporate Purposes | Balance (≤15%) |
Growth Strategies Going Forward
City Square Mart has laid out a clear roadmap for the next phase of growth:
- Store Network Expansion
- Deeper penetration in Gujarat, especially Tier-2 and Tier-3 cities (Anand, Jamnagar, Palanpur, Junagadh, Bhavnagar, Nadiad, Navsari, etc.).
- Strategic location selection to balance visibility and rental economics.
- Enhancing Customer Experience
- Value-for-money pricing strategy.
- Introduction of new products (organic, gourmet, private labels, festive specials).
- Family-friendly shopping ambience (AC stores, digital billing, flexible payment).
- Supply Chain & Efficiency
- Strengthening ERP-driven inventory planning.
- Stronger supplier relationships and logistics optimization.
- Expansion/upgradation of existing stores to boost efficiency.
- Same-Store Sales Growth Drivers
- Broader product portfolio.
- Hyperlocal app + website integration for omni-channel presence.
- Leveraging customer data & loyalty programs to drive cross-sell/upsell.
- In-store engagement: live sampling, personal assistants, lucky draws, festive events.
- Operational Excellence
- Continuous process improvement.
- Adoption of best industry practices.
- Technology-driven customer insights and service.
City Square Mart IPO Review: Peer Comparison
| Particulars | Jay Ambe (FY25) | Osia Hyper Retail (FY25) |
|---|---|---|
| Revenue (INR Cr) | 47.35 | 1,144.47 |
| EPS | 4.50 | 1.46 |
| NAV | 20.83 | 23.85 |
| P/E | 16–17* | 17.0 |
| RoNW (%) | 20.29 | 4.97 |
Key Takeaway:
- While Jay Ambe’s scale is much smaller, it delivers higher EPS and RoNW than Osia Hyper Retail.
- At a P/E of ~16–17x, valuations are reasonable and in line with peers.
- Suggests that City Square Mart is positioning itself as a high-margin, small-cap retail player.
Conclusion
Jay Ambe Supermarkets’ IPO offers you a chance to get into a rapidly growing retail chain with improving margins, strong vendor relationships and efficient operations. With experienced leadership and a scalable franchise model, it has good growth prospects. However geographic concentration and retail competition are key challenges and hence disciplined execution is essential for long term value creation.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription, stay tuned to IPO Central.