Amba Auto Sales and Services Ltd IPO
Retail
Price Band
₹130 – ₹135
Lot Size
1000
Minimum Bid Quantity
2000
Minimum Investment
₹270000
Issue Size
₹65.12Cr
Opens
2026-04-27
Closes
2026-04-29
Listing
05-05-2026
Subscription Status
Qualified Institutional Buyers
1.75 x
Non-Institutional Investor
1.42 x
Retail Individual Investor
0.7 x
Total
1.18 x
IPO Details
Issue Type
EQUITY
Face Value
₹10
Tick Size
1
ISIN
INE293601014
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Amba Auto Sales and Services Limited operates as an authorised dealer of automobiles and consumer electronics. The company is engaged in the sale of new two-wheelers and commercial vehicles of Bajaj Auto Limited, along with after-sales services such as repairs, spare parts, lubricants, and accessories. It also facilitates third-party financial and insurance products. In addition, the company sells consumer electronics, including air conditioners, televisions, washing machines, refrigerators, and small appliances, through its association with LG Electronics India Limited. The company has an established presence in Bengaluru, Karnataka, where it operates a network of showrooms and service centres across its automobile and electronics segments, along with a godown. Its operations include sales, servicing, and customer support activities carried out through these locations.
Pros
- • The company claims to be led by an experienced promoter and management team with over two decades of presence in the Bengaluru automobile market. The leadership has been involved in building relationships with dealers, financial institutions, and customers, which has supported the company’s expansion across multiple outlets.
- • The company claims to have a network of showrooms and service centres within Bengaluru, supported by a centrally located godown of around 20,000 sq. ft. This infrastructure is used to maintain inventory and support ongoing sales and service operations.
- • The company claims to operate across multiple segments within the automobile and consumer electronics space. Its portfolio includes two-wheelers, three-wheelers, electric vehicles (EVs), and consumer appliances, along with after-sales services and facilitation of financing and insurance.
Cons
- • The company’s business is highly dependent on the performance, brand perception, and competitiveness of its OEM partners, primarily Bajaj Auto. Revenue from Bajaj-related operations alone contributed Rs 228.69 crore (94.36%), Rs 200.00 crore (94.68%), and Rs 106.39 crore (94.19%) in FY25, FY24, and FY23, respectively. Any adverse developments, such as product recalls, quality issues, or negative publicity related to these OEMs, can directly impact demand and sales. Any damage to the reputation or market position of these OEMs, or the company’s inability to maintain competitive positioning, could materially affect its business operations. Since the company has limited control over these external factors, any decline in consumer trust or OEM performance can adversely impact its financial condition.
- • The company has a relatively high debt-equity ratio of 3.65 as of FY25, compared to the industry average of 0.34 in FY25. This indicates a significant reliance on external borrowings and working capital financing to support its operations. Any increase in interest rates or tightening of liquidity conditions could raise borrowing costs and impact profitability. Any inability to effectively manage its debt obligations or generate sufficient cash flows could adversely affect the company’s financial stability. High leverage may also restrict its ability to raise additional funds or pursue future growth opportunities, especially during periods of economic or industry downturns.
- • The company has reported negative cash flows from operations and investing activities in multiple periods. Net cash flow from operating activities stood at Rs 6.93 crore, Rs 2.83 crore, and Rs 0.24 crore in FY25, FY24, and FY23, respectively, while cash outflows from investing activities were Rs 4.70 crore, Rs 2.50 crore, and Rs 0.61 crore during the same periods. These outflows were primarily driven by inventory requirements and capital expenditure. Any continued negative cash flows could impact the company’s ability to meet working capital requirements, service debt, and fund expansion plans. This may limit its operational flexibility, adversely affecting its financial condition and growth prospects.
Get real-time IPO alerts on WhatsApp
Opening reminders • Subscription updates • GMP alerts • Allotment results
Start WhatsApp Alerts