Jay Ambe Supermarkets Ltd IPO
Status:
Overview
IPO date
10 Sept 2025 to 12 Sept 2025
Face value
₹ 10 per share
Price
₹ 74 to ₹78 per share
Issue Size
2,364,800 shares
(aggregating up to ₹ 18.45 Cr)
(aggregating up to ₹ 18.45 Cr)
Allotment Date
15 Sept 2025
Listing at
NSE
Issue type
Book Building - SME
Sector
Unlock Stock of the Month
T&C*
Strengths vs Risks of Jay Ambe Supermarkets Ltd
Know the pros & cons
Strengths
- Strong Vendor Relationships.
- Wide Range of Products.
- Professional and Experienced Management Team.
- Customer friendly Refund Policy.
Risks
- All the properties on which we run our stores are taken on rent/lease by us and many of them have been taken by us from third parties on short term lease/rent basis. Any disruption of rent agreements so entered by us or any objections from the owners of these properties to let us continue our operations or vacate those properties on short notice may have a material and adverse impact on the business of our Company. Further, some of our lease agreements may have certain irregularities because of which we may be unable to effectively enforce our leasehold rights which may have a material and adverse impact on the business of our Company.
- We have significant working capital requirements and our inability to meet the working capital requirements may have an adverse effect on our results of operations.
- If we are unable to maintain an optimal level of inventory, our business, results of operations, financial condition and cash flows may be adversely affected.
- All of our stores are presently located in Gujarat. However, we plan to expand into new geographies and may be exposed to significant liability and could lose some or all of our investment in such regions, as a result of which our business, financial condition and results of operations could be adversely affected.
- Competition from Organized offline retailers and online retailers which can offer products at more competitive prices and also offer wide range of products, may adversely affect our business and our financial condition, results of operations and cash flows.
- We intend to utilise a portion of the Net Proceeds for funding our capital expenditure requirements. This includes Purchase of Existing Store of the company located at Nana Chiloda, Ahmedabad and Purchase of fit-outs for Three (3) new proposed stores, which may be subject to the risk of unanticipated delays in implementation, cost overruns and other project risks and uncertainties.
- There are certain proceedings involving our Company, our Directors, Promoters which if determined against us, may have an adverse effect on our business, cash flows and results of operations.
- There have been certain instances of delays and discrepancies in relation to certain statutory filings made or required to be filed by our Company with the RoC under applicable law and certain other non-compliances under Indian company law.
- There are certain discrepancies and non-compliances noticed in filing of returns and deposit of statutory dues with the taxation and other statutory authorities in the past. Any delay in payment of statutory dues by our Company in future, may result in the imposition of penalties, which could adversely impact our financials.
- The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of our Company.
- Any negative cash flows in the future would adversely affect our cash flow requirements, which may adversely affect our ability to operate our business and implement our growth plans, thereby affecting our financial condition.
- We operate in a competitive industry and our market share may be adversely impacted in case we do not keep ourselves apprised of the latest consumer trends and technology and if we fail to compete effectively in the markets in which we operate.
- Our business is operating under various laws which require us to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business, and if we are unable to obtain these approvals and the renewals, our business operations could be adversely affected thereby impacting our revenues and profitability.
- We propose to use Rs. 425.00 lakhs of the Net Proceeds of the Issue towards purchase of existing store of the company located at Nana Chiloda, Ahmedabad for which we have not even entered into any definitive agreement with the owner of the said property. In addition, we propose to use Rs. 522.71 lakhs of the Net Proceeds of the Issue towards purchase of fit-outs for Three (3) new stores. While we have entered into long-term leasehold arrangements for Mansa (Gandhinagar) store, we are yet to enter into lease arrangements or enter into rental agreements for new stores at Lunawada (Mahisagar) and IIT Gandhinagar (Gandhinagar). In case we are unable to purchase the Nana Chiloda store or open the new stores in a timely manner as mentioned in the chapter "Objects of the Issue", we may fall short of the revenue targets of the Company and this would have an adverse effect on our business, financial condition, results of operations and growth prospects.
- Our Company may not be able to grow at the same rate as it has done in the previous Financial Years. Any inability on our part to manage our growth or implement our strategies effectively could have a material adverse effect on our business, results of operations and financial condition.
- If we are unable to effectively manage our growing operations or pursue our growth strategy of opening new stores, our business, results of operations, financial condition and cash flows may be adversely affected.
- We have, in the last twelve months, issued Equity Shares at a price that may be lower than the Offer Price.
- Our Company has applied for assignment of the registered trademark of our business CITY SQUARE MART in its name from M/s Jay Ambe Trading. Until such registrations are granted, we may not be able to prevent unauthorised use of such trademarks by third parties, which may lead to the dilution of our goodwill.
- We may in the future face potential liabilities from lawsuits or claims from customers, should they perceive any deficiency in the products we sell in our stores. We may also face the risk of legal proceedings initiated against our Company which may result in loss of business and reputation.
- Any failure to maintain quality of customer service, products and deal with customer complaints and to further attract and retain customers and maintain consistency in customer service could materially and adversely affect our business and operating results.
- Some of our stores were closed due to some reasons and we can not assure that similar event will not haapen in the future which may have an adverse effect on our business, results of operations, cash flows and financial condition.
- Our Company's business relies on the reliable performance of its information technology systems and any interruption or abnormality in the same may have an adverse impact on our business operations and profitability.
- Inspite of being in the retail trading business, our Company is having trade receivables and any delay or default in receipt of payments from customers could adversely affect our business, results of operations, financial condition and cash flows.
- Our inability to continue to implement our marketing and advertising initiatives and brand building exercises could adversely affect our business and financial condition.
- Our insurance coverage may not be adequate to protect us against certain operating hazards and this may have a material adverse effect on our business.
- We have incurred indebtedness which exposes us to various risks which may have an adverse effect on our business and results of operations.
- The average cost of acquisition of Equity shares by our Promoters may be substanially lower than the Issue price.
- Our ability to attract customers is dependent on the location of our stores and any adverse development impairing the success and viability of our stores could adversely affect our business, financial condition and results of operations.
- Our inability to manage losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on our profitability and our reputation.
- Our funding requirements and proposed deployment of the Net Proceeds have not been appraised by a bank or a financial institution and if there are any delays or cost overruns, we may have to incur additional cost to fund the project because of which our business, financial condition and results of operations may be adversely affected.
- Our business is subject to seasonal and cyclical volatility due to which there may be fluctuation in the sales of products which could lead to higher closing inventory position, which may adversely affect our business.
- The success of our business depends substantially on our management team and other key personnel. Our inability to attract or retain such manpower or any loss of members of our Senior Management Personnel or Key Managerial Personnel could significantly delay or prevent the achievement of our business objectives, and could adversely affect our business and operations.
- Our agreements with various banks for financial arrangements contain restrictive covenants for certain activities and if we are unable to get their approval, it might restrict our scope of activities and impede our growth plans.
- This Draft Red Herring Prospectus contains information from an industry report prepared by D & B, commissioned by us for the purpose of the Issue for an agreed fee.
- Our Company has not paid any dividends in the past and we may not be able to pay dividends in the future.
- Our Promoters and Promoter Group members have provided personal guarantees for loans availed by us from Bank of India. In the event of default of the debt obligations, the personal guarantees may be invoked thereby adversely affecting our Promoters' ability to manage the affairs of our Company and our Company's profitability and consequently this may impact our business, prospects, financial condition and results of operations.
- Our Company has availed unsecured loans which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect our cash flows.
- Our Promoters, Directors, Key Management Personnel (KMP) and Senior Managerial Personnel (SMP) may have interests in our Company other than normal remuneration or benefits and reimbursement of expenses incurred.
- Our Company has entered into, and will continue to enter into, related party transactions which may not always enable us to achieve the most favourable terms.
- We may not be successful in implementing our business strategies.
- Our Promoters and Promoter Group will continue to have significant shareholding in our Company after the Issue, which will allow them to exercise significant influence over the Company.
- There is no monitoring agency appointed by Our Company to monitor the utilization of the Issue proceeds and same is entirely at the discretion of Our Company.
- In the event there is any delay in the completion of the Issue, or delay in the implementation schedule, there would be a corresponding delay in the completion of the objects of this Issue which, which, in turn, could affect our revenues and results of operations.
- We have not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at our discretion and as per the details mentioned in the section titled "Objects of the Issue".
- The Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
- All of our stores are presently located in Gujarat. However, we plan to expand into new geographies and may be exposed to significant liability and could lose some or all of our investment in such regions, as a result of which our business, financial condition and results of operations could be adversely affected.
- All the properties on which we run our stores are taken on rent/lease by us and many of them have been taken by us from third parties on short term lease/rent basis. Any disruption of rent agreements so entered by us or any objections from the owners of these properties to let us continue our operations or vacate those properties on short notice may have a material and adverse impact on the business of our Company. Further, some of our lease agreements may have certain irregularities because of which we may be unable to effectively enforce our leasehold rights which may have a material and adverse impact on the business of our Company.
- We have significant working capital requirements and our inability to meet the working capital requirements may have an adverse effect on our results of operations.
- If we are unable to maintain an optimal level of inventory, our business, results of operations, financial condition and cash flows may be adversely affected.
- We intend to utilise a portion of the Net Proceeds for funding our capital expenditure requirements. This includes Purchase of Existing Store of the company located at Nana Chiloda, Ahmedabad and Purchase of fit-outs for Three (3) new stores, which may be subject to the risk of unanticipated delays in implementation, cost overruns and other project risks and uncertainties.
- There are certain proceedings involving our Company, our Directors, Promoters and KMP/SMP which if determined against us, may have an adverse effect on our business, cash flows and results of operations.
- There have been certain instances of delays and discrepancies in relation to certain statutory filings made or required to be filed by our Company with the RoC under applicable law and certain other non-compliances under Indian company law.
- There are certain discrepancies and non-compliances noticed in filing of returns and deposit of statutory dues with the taxation and other statutory authorities in the past. Any delay in payment of statutory dues by our Company in future, may result in the imposition of penalties, which could adversely impact our financials.
- Any negative cash flows in the future would adversely affect our cash flow requirements, which may adversely affect our ability to operate our business and implement our growth plans, thereby affecting our financial condition.
- The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of our Company.
- We operate in a competitive industry and our market share may be adversely impacted in case we do not keep ourselves apprised of the latest consumer trends and technology and if we fail to compete effectively in the markets in which we operate.
- Our business is operating under various laws which require us to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business, and if we are unable to obtain these approvals and the renewals, our business operations could be adversely affected thereby impacting our revenues and profitability.
- Our Company may not be able to grow at the same rate as it has done in the previous Financial Years. Any inability on our part to manage our growth or implement our strategies effectively could have a material adverse effect on our business, results of operations and financial condition.
- If we are unable to effectively manage our growing operations or pursue our growth strategy of opening new stores, our business, results of operations, financial condition and cash flows may be adversely affected.
- We have, in the last twelve months, issued Equity Shares at a price that may be lower than the Offer Price.
- Our Company has applied for assignment of the registered trademark of our business CITY SQUARE MART in its name from Jay Ambe Trading. Until such registrations are granted, we may not be able to prevent unauthorised use of such trademarks by third parties, which may lead to the dilution of our goodwill.
- We may in the future face potential liabilities from lawsuits or claims from customers, should they perceive any deficiency in the products we sell in our stores. We may also face the risk of legal proceedings initiated against our Company which may result in loss of business and reputation.
- Any failure to maintain quality of customer service, products and deal with customer complaints and to further attract and retain customers and maintain consistency in customer service could materially and adversely affect our business and operating results.
- Some of our stores were closed due to some reasons and we can not assure that similar event will not haapen in the future which may have an adverse effect on our business, results of operations, cash flows and financial condition.
- Our Company's business relies on the reliable performance of its information technology systems and any interruption or abnormality in the same may have an adverse impact on our business operations and profitability.
- Inspite of being in the retail trading business, our Company is having trade receivables and any delay or default in receipt of payments from customers could adversely affect our business, results of operations, financial condition and cash flows.
- Our inability to continue to implement our marketing and advertising initiatives and brand building exercises could adversely affect our business and financial condition.
- Our insurance coverage may not be adequate to protect us against certain operating hazards and this may have a material adverse effect on our business.
- We have incurred indebtedness which exposes us to various risks which may have an adverse effect on our business and results of operations.
- The average cost of acquisition of Equity shares by our Promoters may be substanially lower than the Issue price.
- Our ability to attract customers is dependent on the location of our stores and any adverse development impairing the success and viability of our stores could adversely affect our business, financial condition and results of operations.
- Our inability to manage losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on our profitability and our reputation.
- Our funding requirements and proposed deployment of the Net Proceeds have not been appraised by a bank or a financial institution and if there are any delays or cost overruns, we may have to incur additional cost to fund the project because of which our business, financial condition and results of operations may be adversely affected.
- Our business is subject to seasonal and cyclical volatility due to which there may be fluctuation in the sales of products which could lead to higher closing inventory position, which may adversely affect our business.
- The success of our business depends substantially on our management team and other key personnel. Our inability to attract or retain such manpower or any loss of members of our Senior Management Personnel or Key Managerial Personnel could significantly delay or prevent the achievement of our business objectives, and could adversely affect our business and operations.
- Our agreements with various banks for financial arrangements contain restrictive covenants for certain activities and if we are unable to get their approval, it might restrict our scope of activities and impede our growth plans.
- This Red Herring Prospectus contains information from an industry report prepared by D & B, commissioned by us for the purpose of the Issue for an agreed fee.
- Significant Increase in the Valuation of Our Equity Shares in the Recent Past May Not Be Indicative of Future Performance or Valuation.
- Our Company has not paid any dividends in the past and we may not be able to pay dividends in the future.
- Our Promoters and Promoter Group members have provided personal guarantees for loans availed by us from Bank of India. In the event of default of the debt obligations, the personal guarantees may be invoked thereby adversely affecting our Promoters' ability to manage the affairs of our Company and our Company's profitability and consequently this may impact our business, prospects, financial condition and results of operations.
- Our Company has availed unsecured loans which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect our cash flows.
- Our Promoters, Directors, Key Management Personnel (KMP) and Senior Managerial Personnel (SMP) may have interests in our Company other than normal remuneration or benefits and reimbursement of expenses incurred.
- Our Company has entered into, and will continue to enter into, related party transactions which may not always enable us to achieve the most favourable terms.
- We have made certain delays in payment to MSME vendors beyond the statutory requirement as prescribed under MSME Act, 2006.
- We may not be successful in implementing our business strategies.
- Our Promoters and Promoter Group will continue to have significant shareholding in our Company after the Issue, which will allow them to exercise significant influence over the Company.
- There is no monitoring agency appointed by Our Company to monitor the utilization of the Issue proceeds and same is entirely at the discretion of Our Company.
- In the event there is any delay in the completion of the Issue, or delay in the implementation schedule, there would be a corresponding delay in the completion of the objects of this Issue which, which, in turn, could affect our revenues and results of operations.
- We have not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at our discretion and as per the details mentioned in the section titled "Objects of the Issue".
- The Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
Jay Ambe Supermarkets Ltd Peer Comparison
Understand the company’s industry standing
Jay Ambe Supermarkets Ltd
Osia Hyper Retail Ltd
Face Value
10
1
Standalone / Consolidated
Standalone
Consolidated
Total Income Rs. Cr.
47.3528
1144.4745
EPS-Basis
4.5
1.46
EPS-Diluted
4.5
1.46
NAV Per Share
20.83
23.85
P/E-Basic EPS
---
17.00
P/E-Diluted EPS
---
---
RONW(%)
20.29
4.97
Latest NAV Period
---
---
Latest NAV
---
---
How to check the allotment status of Jay Ambe Supermarkets Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
IPO reads
Stay updated with the latest IPO developments
February 27, 2025 | 5 min read
₹50.11 Cr Balaji Phosphates IPO Opens Feb 28. Issue Details and SWOT AnalysisRead More
February 25, 2025 | 5 min read
Tata Capital Board Approves ₹15,000 Cr Plus Mega IPO; Tata Investment Shares Soar 8%Read More
February 18, 2025 | 5 min read
Busy Week Ahead: 2 SME IPOs and 9 Market Listings – Get the Complete Details HereRead More
October 25, 2024 | 5 min read
Waaree Energies IPO: GMP Soars 106% Amid 76.34x Subscription – Check Your Allotment Status!Read More
October 22, 2024 | 5 min read
Upcoming IPOs: 9 Public Issues Set to Raise ₹10,984.8 Cr – Key Insights Inside!Read More
October 17, 2024 | 5 min read
Hyundai IPO Hits a Speed Bump With 42% Subscription On Day 2 : 4 Reasons WhyRead More
September 6, 2024 | 5 min read
Bajaj Housing Finance IPO: All You Need to KnowRead MoreOctober 17, 2024 | 5 min read
Hyundai IPO Hits a Speed Bump With 42% Subscription On Day 2 : 4 Reasons WhyRead More
August 26, 2024 | 5 min read
Premier Energies IPO: Key Details Ahead of the ₹2,830.40 Cr Issue LaunchRead MoreMore on IPOs
Navigate your way to other IPO resources
Latest videos on IPOs
IPO highlights & details!
FAQs on IPO
Get answers to all your questions here!
The IPO opens on 10 Sept 2025 & closes on 12 Sept 2025.
Jay Ambe Supermarkets Limited was originally incorporated on November 23, 2020 under the name and style of Jay Ambe Supermarkets Private Limited', pursuant to a certificate of incorporation dated November 23, 2020 issued by the Registrar of Companies, Central Registration Centre. Furthermore, Company was converted into a public limited company with a fresh certificate of incorporation dated February 25, 2025 reflecting the change in name of the Company to Jay Ambe Supermarkets Limited'.
The Company was founded with the object to carry on the business of trading of FMCG material, grocery, Home Textile, Home Décor, Cloths, or Apparels, Toys, Gift Articles, Footwear, other house hold items, via supermarkets and its type and other related activity. At present, Company is engaged in trading of FMCG material, grocery, Home Textile, Home Décor, Cloths, or Apparels, Toys, Gift Articles, Footwear and other house hold items, via supermarkets. It is also carrying on its business through retail marts via franchise model as well.
The Company began its business with the establishment of first store in Kudasan, Gandhinagar in 2018. In just 6 years, the company expanded to 15 stores across Gujarat, establishing itself as a fast-growing retail chain in the region. The origins of Company trace back to June, 2016, when M/s Jay Ambe Trading was established as a partnership firm. After incorporation of the Company on November 23, 2020, the promoters took over the business of the firm Jay Ambe Trading vide a Business Sale and Purchase Agreement dated January 25, 2021, leading to the full transfer of all assets and liabilities of the firm to the company effective from February 1, 2021.
Company launched the IPO of 23,64,800 equity shares of Rs 10 each, by raising Rs 18.44 crores in September, 2025.
Jay Ambe Supermarkets Ltd IPO will close on 12 Sept 2025.
- Strong Vendor Relationships.
- Wide Range of Products.
- Professional and Experienced Management Team.
- Customer friendly Refund Policy.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Jignesh Amratbhai Patel | 656000 | 10.07 | 656000 | 7.39 |
| 2 | Harshal Daxeshkumar Patel | 468000 | 7.18 | 468000 | 5.27 |
| 3 | Bhikhabhai Shivdas Patel | 678000 | 10.41 | 678000 | 7.64 |
| 4 | Rutwijkumar Maganbhai Patel | 420000 | 6.45 | 420000 | 4.73 |
| 5 | Shital Bhikhabhai Patel | 520000 | 7.98 | 520000 | 5.86 |
| 6 | Bharatiben Daxeshkumar Patel | 480000 | 7.37 | 480000 | 5.41 |
| 7 | Mital Hitendra Patel | 474000 | 7.28 | 474000 | 5.34 |
| 8 | Maganbhai Ambaram Patel | 368849 | 5.66 | 368849 | 4.15 |
| 9 | Gitaben Maganbhai Patel | 353698 | 5.43 | 353698 | 3.98 |
| 10 | Daxeshkumar Sankalchand Patel | 240000 | 3.68 | 240000 | 2.7 |
- All the properties on which we run our stores are taken on rent/lease by us and many of them have been taken by us from third parties on short term lease/rent basis. Any disruption of rent agreements so entered by us or any objections from the owners of these properties to let us continue our operations or vacate those properties on short notice may have a material and adverse impact on the business of our Company. Further, some of our lease agreements may have certain irregularities because of which we may be unable to effectively enforce our leasehold rights which may have a material and adverse impact on the business of our Company.
- We have significant working capital requirements and our inability to meet the working capital requirements may have an adverse effect on our results of operations.
- If we are unable to maintain an optimal level of inventory, our business, results of operations, financial condition and cash flows may be adversely affected.
- All of our stores are presently located in Gujarat. However, we plan to expand into new geographies and may be exposed to significant liability and could lose some or all of our investment in such regions, as a result of which our business, financial condition and results of operations could be adversely affected.
- Competition from Organized offline retailers and online retailers which can offer products at more competitive prices and also offer wide range of products, may adversely affect our business and our financial condition, results of operations and cash flows.
- We intend to utilise a portion of the Net Proceeds for funding our capital expenditure requirements. This includes Purchase of Existing Store of the company located at Nana Chiloda, Ahmedabad and Purchase of fit-outs for Three (3) new proposed stores, which may be subject to the risk of unanticipated delays in implementation, cost overruns and other project risks and uncertainties.
- There are certain proceedings involving our Company, our Directors, Promoters which if determined against us, may have an adverse effect on our business, cash flows and results of operations.
- There have been certain instances of delays and discrepancies in relation to certain statutory filings made or required to be filed by our Company with the RoC under applicable law and certain other non-compliances under Indian company law.
- There are certain discrepancies and non-compliances noticed in filing of returns and deposit of statutory dues with the taxation and other statutory authorities in the past. Any delay in payment of statutory dues by our Company in future, may result in the imposition of penalties, which could adversely impact our financials.
- The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of our Company.
- Any negative cash flows in the future would adversely affect our cash flow requirements, which may adversely affect our ability to operate our business and implement our growth plans, thereby affecting our financial condition.
- We operate in a competitive industry and our market share may be adversely impacted in case we do not keep ourselves apprised of the latest consumer trends and technology and if we fail to compete effectively in the markets in which we operate.
- Our business is operating under various laws which require us to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business, and if we are unable to obtain these approvals and the renewals, our business operations could be adversely affected thereby impacting our revenues and profitability.
- We propose to use Rs. 425.00 lakhs of the Net Proceeds of the Issue towards purchase of existing store of the company located at Nana Chiloda, Ahmedabad for which we have not even entered into any definitive agreement with the owner of the said property. In addition, we propose to use Rs. 522.71 lakhs of the Net Proceeds of the Issue towards purchase of fit-outs for Three (3) new stores. While we have entered into long-term leasehold arrangements for Mansa (Gandhinagar) store, we are yet to enter into lease arrangements or enter into rental agreements for new stores at Lunawada (Mahisagar) and IIT Gandhinagar (Gandhinagar). In case we are unable to purchase the Nana Chiloda store or open the new stores in a timely manner as mentioned in the chapter "Objects of the Issue", we may fall short of the revenue targets of the Company and this would have an adverse effect on our business, financial condition, results of operations and growth prospects.
- Our Company may not be able to grow at the same rate as it has done in the previous Financial Years. Any inability on our part to manage our growth or implement our strategies effectively could have a material adverse effect on our business, results of operations and financial condition.
- If we are unable to effectively manage our growing operations or pursue our growth strategy of opening new stores, our business, results of operations, financial condition and cash flows may be adversely affected.
- We have, in the last twelve months, issued Equity Shares at a price that may be lower than the Offer Price.
- Our Company has applied for assignment of the registered trademark of our business CITY SQUARE MART in its name from M/s Jay Ambe Trading. Until such registrations are granted, we may not be able to prevent unauthorised use of such trademarks by third parties, which may lead to the dilution of our goodwill.
- We may in the future face potential liabilities from lawsuits or claims from customers, should they perceive any deficiency in the products we sell in our stores. We may also face the risk of legal proceedings initiated against our Company which may result in loss of business and reputation.
- Any failure to maintain quality of customer service, products and deal with customer complaints and to further attract and retain customers and maintain consistency in customer service could materially and adversely affect our business and operating results.
- Some of our stores were closed due to some reasons and we can not assure that similar event will not haapen in the future which may have an adverse effect on our business, results of operations, cash flows and financial condition.
- Our Company's business relies on the reliable performance of its information technology systems and any interruption or abnormality in the same may have an adverse impact on our business operations and profitability.
- Inspite of being in the retail trading business, our Company is having trade receivables and any delay or default in receipt of payments from customers could adversely affect our business, results of operations, financial condition and cash flows.
- Our inability to continue to implement our marketing and advertising initiatives and brand building exercises could adversely affect our business and financial condition.
- Our insurance coverage may not be adequate to protect us against certain operating hazards and this may have a material adverse effect on our business.
- We have incurred indebtedness which exposes us to various risks which may have an adverse effect on our business and results of operations.
- The average cost of acquisition of Equity shares by our Promoters may be substanially lower than the Issue price.
- Our ability to attract customers is dependent on the location of our stores and any adverse development impairing the success and viability of our stores could adversely affect our business, financial condition and results of operations.
- Our inability to manage losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on our profitability and our reputation.
- Our funding requirements and proposed deployment of the Net Proceeds have not been appraised by a bank or a financial institution and if there are any delays or cost overruns, we may have to incur additional cost to fund the project because of which our business, financial condition and results of operations may be adversely affected.
- Our business is subject to seasonal and cyclical volatility due to which there may be fluctuation in the sales of products which could lead to higher closing inventory position, which may adversely affect our business.
- The success of our business depends substantially on our management team and other key personnel. Our inability to attract or retain such manpower or any loss of members of our Senior Management Personnel or Key Managerial Personnel could significantly delay or prevent the achievement of our business objectives, and could adversely affect our business and operations.
- Our agreements with various banks for financial arrangements contain restrictive covenants for certain activities and if we are unable to get their approval, it might restrict our scope of activities and impede our growth plans.
- This Draft Red Herring Prospectus contains information from an industry report prepared by D & B, commissioned by us for the purpose of the Issue for an agreed fee.
- Our Company has not paid any dividends in the past and we may not be able to pay dividends in the future.
- Our Promoters and Promoter Group members have provided personal guarantees for loans availed by us from Bank of India. In the event of default of the debt obligations, the personal guarantees may be invoked thereby adversely affecting our Promoters' ability to manage the affairs of our Company and our Company's profitability and consequently this may impact our business, prospects, financial condition and results of operations.
- Our Company has availed unsecured loans which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect our cash flows.
- Our Promoters, Directors, Key Management Personnel (KMP) and Senior Managerial Personnel (SMP) may have interests in our Company other than normal remuneration or benefits and reimbursement of expenses incurred.
- Our Company has entered into, and will continue to enter into, related party transactions which may not always enable us to achieve the most favourable terms.
- We may not be successful in implementing our business strategies.
- Our Promoters and Promoter Group will continue to have significant shareholding in our Company after the Issue, which will allow them to exercise significant influence over the Company.
- There is no monitoring agency appointed by Our Company to monitor the utilization of the Issue proceeds and same is entirely at the discretion of Our Company.
- In the event there is any delay in the completion of the Issue, or delay in the implementation schedule, there would be a corresponding delay in the completion of the objects of this Issue which, which, in turn, could affect our revenues and results of operations.
- We have not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at our discretion and as per the details mentioned in the section titled "Objects of the Issue".
- The Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
- All of our stores are presently located in Gujarat. However, we plan to expand into new geographies and may be exposed to significant liability and could lose some or all of our investment in such regions, as a result of which our business, financial condition and results of operations could be adversely affected.
- All the properties on which we run our stores are taken on rent/lease by us and many of them have been taken by us from third parties on short term lease/rent basis. Any disruption of rent agreements so entered by us or any objections from the owners of these properties to let us continue our operations or vacate those properties on short notice may have a material and adverse impact on the business of our Company. Further, some of our lease agreements may have certain irregularities because of which we may be unable to effectively enforce our leasehold rights which may have a material and adverse impact on the business of our Company.
- We have significant working capital requirements and our inability to meet the working capital requirements may have an adverse effect on our results of operations.
- If we are unable to maintain an optimal level of inventory, our business, results of operations, financial condition and cash flows may be adversely affected.
- We intend to utilise a portion of the Net Proceeds for funding our capital expenditure requirements. This includes Purchase of Existing Store of the company located at Nana Chiloda, Ahmedabad and Purchase of fit-outs for Three (3) new stores, which may be subject to the risk of unanticipated delays in implementation, cost overruns and other project risks and uncertainties.
- There are certain proceedings involving our Company, our Directors, Promoters and KMP/SMP which if determined against us, may have an adverse effect on our business, cash flows and results of operations.
- There have been certain instances of delays and discrepancies in relation to certain statutory filings made or required to be filed by our Company with the RoC under applicable law and certain other non-compliances under Indian company law.
- There are certain discrepancies and non-compliances noticed in filing of returns and deposit of statutory dues with the taxation and other statutory authorities in the past. Any delay in payment of statutory dues by our Company in future, may result in the imposition of penalties, which could adversely impact our financials.
- Any negative cash flows in the future would adversely affect our cash flow requirements, which may adversely affect our ability to operate our business and implement our growth plans, thereby affecting our financial condition.
- The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of our Company.
- We operate in a competitive industry and our market share may be adversely impacted in case we do not keep ourselves apprised of the latest consumer trends and technology and if we fail to compete effectively in the markets in which we operate.
- Our business is operating under various laws which require us to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business, and if we are unable to obtain these approvals and the renewals, our business operations could be adversely affected thereby impacting our revenues and profitability.
- Our Company may not be able to grow at the same rate as it has done in the previous Financial Years. Any inability on our part to manage our growth or implement our strategies effectively could have a material adverse effect on our business, results of operations and financial condition.
- If we are unable to effectively manage our growing operations or pursue our growth strategy of opening new stores, our business, results of operations, financial condition and cash flows may be adversely affected.
- We have, in the last twelve months, issued Equity Shares at a price that may be lower than the Offer Price.
- Our Company has applied for assignment of the registered trademark of our business CITY SQUARE MART in its name from Jay Ambe Trading. Until such registrations are granted, we may not be able to prevent unauthorised use of such trademarks by third parties, which may lead to the dilution of our goodwill.
- We may in the future face potential liabilities from lawsuits or claims from customers, should they perceive any deficiency in the products we sell in our stores. We may also face the risk of legal proceedings initiated against our Company which may result in loss of business and reputation.
- Any failure to maintain quality of customer service, products and deal with customer complaints and to further attract and retain customers and maintain consistency in customer service could materially and adversely affect our business and operating results.
- Some of our stores were closed due to some reasons and we can not assure that similar event will not haapen in the future which may have an adverse effect on our business, results of operations, cash flows and financial condition.
- Our Company's business relies on the reliable performance of its information technology systems and any interruption or abnormality in the same may have an adverse impact on our business operations and profitability.
- Inspite of being in the retail trading business, our Company is having trade receivables and any delay or default in receipt of payments from customers could adversely affect our business, results of operations, financial condition and cash flows.
- Our inability to continue to implement our marketing and advertising initiatives and brand building exercises could adversely affect our business and financial condition.
- Our insurance coverage may not be adequate to protect us against certain operating hazards and this may have a material adverse effect on our business.
- We have incurred indebtedness which exposes us to various risks which may have an adverse effect on our business and results of operations.
- The average cost of acquisition of Equity shares by our Promoters may be substanially lower than the Issue price.
- Our ability to attract customers is dependent on the location of our stores and any adverse development impairing the success and viability of our stores could adversely affect our business, financial condition and results of operations.
- Our inability to manage losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on our profitability and our reputation.
- Our funding requirements and proposed deployment of the Net Proceeds have not been appraised by a bank or a financial institution and if there are any delays or cost overruns, we may have to incur additional cost to fund the project because of which our business, financial condition and results of operations may be adversely affected.
- Our business is subject to seasonal and cyclical volatility due to which there may be fluctuation in the sales of products which could lead to higher closing inventory position, which may adversely affect our business.
- The success of our business depends substantially on our management team and other key personnel. Our inability to attract or retain such manpower or any loss of members of our Senior Management Personnel or Key Managerial Personnel could significantly delay or prevent the achievement of our business objectives, and could adversely affect our business and operations.
- Our agreements with various banks for financial arrangements contain restrictive covenants for certain activities and if we are unable to get their approval, it might restrict our scope of activities and impede our growth plans.
- This Red Herring Prospectus contains information from an industry report prepared by D & B, commissioned by us for the purpose of the Issue for an agreed fee.
- Significant Increase in the Valuation of Our Equity Shares in the Recent Past May Not Be Indicative of Future Performance or Valuation.
- Our Company has not paid any dividends in the past and we may not be able to pay dividends in the future.
- Our Promoters and Promoter Group members have provided personal guarantees for loans availed by us from Bank of India. In the event of default of the debt obligations, the personal guarantees may be invoked thereby adversely affecting our Promoters' ability to manage the affairs of our Company and our Company's profitability and consequently this may impact our business, prospects, financial condition and results of operations.
- Our Company has availed unsecured loans which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect our cash flows.
- Our Promoters, Directors, Key Management Personnel (KMP) and Senior Managerial Personnel (SMP) may have interests in our Company other than normal remuneration or benefits and reimbursement of expenses incurred.
- Our Company has entered into, and will continue to enter into, related party transactions which may not always enable us to achieve the most favourable terms.
- We have made certain delays in payment to MSME vendors beyond the statutory requirement as prescribed under MSME Act, 2006.
- We may not be successful in implementing our business strategies.
- Our Promoters and Promoter Group will continue to have significant shareholding in our Company after the Issue, which will allow them to exercise significant influence over the Company.
- There is no monitoring agency appointed by Our Company to monitor the utilization of the Issue proceeds and same is entirely at the discretion of Our Company.
- In the event there is any delay in the completion of the Issue, or delay in the implementation schedule, there would be a corresponding delay in the completion of the objects of this Issue which, which, in turn, could affect our revenues and results of operations.
- We have not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at our discretion and as per the details mentioned in the section titled "Objects of the Issue".
- The Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
The Issue type of Jay Ambe Supermarkets Ltd is Book Building - SME.
The minimum application for shares of Jay Ambe Supermarkets Ltd is 3200.
The total shares issue of Jay Ambe Supermarkets Ltd is 2364800.
Initial public issue of 23,64,800 equity shares of face value of
Rs. 10/- each of Jay Ambe Supermarkets Limited ("Jasl") or the "company" or the "issuer") for cash at a price of Rs. 78.00 per equity share including a share premium of Rs. 68.00/- per equity share (the "issue price") aggregating to Rs. 18.45 crores ("the issue"), of which 1,18,400 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 78.00/- per equity share including a share premium of Rs. 68.00/- per equity share aggregating to Rs.0.92 crores will be reserved for subscription by market maker to the issue (the "market maker reservation portion"). The issue less the market maker reservation portion i.e. net issue of 22,46,400 equity shares of face value of Rs. 10/- each at a price of Rs. 78.00/- per equity share including a share premium of Rs. 68.00/- per equity share aggregating to Rs. 17.52 crores is herein after referred to as the "net issue". The issue and the net issue will constitute 26.63% and 25.30%, respectively, of the post issue paid up equity share capital of the company. The face value of the equity shares is ? 10/- each.