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Amba Auto Sales and Services Ltd IPO
Amba Auto Sales and Services Ltd
₹2,60,000 /2000 sharesMinimum investment
IPO details
Minimum investment
₹2,60,000
Price range
₹130 - ₹135
Lot size
1,000
Issue size
65.12 Cr
Face value
10
IPO document
Subscription rate
Data will be available soon
Schedule
27 Apr 2026
IPO open date
29 Apr 2026
IPO close date
30 Apr 2026
Allotment date
30 Apr 2026
Funds unblock or debit
5 May 2026
Tentative listing date
About
Founded in
2005
MD/CEO
Mr Rakesh Kumar Lohia
Parent organisation
Amba Auto Sales and Services Ltd
Amba Auto Sales & Services Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
Strengths
Risks
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.
The company claims to have a long-standing relationship of over two decades with Bajaj Auto Limited, along with an association with LG Electronics India Limited. These relationships have supported its dealership operations and product portfolio expansion.
The company claims to conduct regular training programmes for its workforce to keep them updated with new product developments and service requirements. This includes technical training for handling servicing, maintenance, and repairs of evolving vehicle models.
The company claims to operate 18 service centres with a total of 112 personnel dedicated to servicing and repair functions. These centres are equipped to handle routine maintenance and repairs across different vehicle categories.
The company has witnessed a consistent increase in its revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 112.95 crore in FY23 to Rs 211.23 crore in FY24 and Rs 242.38 crore in FY25. PAT increased from Rs 0.64 crore in FY23 to Rs 2.89 crore in FY24 and Rs 7.78 crore in FY25.
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.
The company’s operations are subject to significant control and restrictions imposed by its OEMs under dealership agreements. It is permitted to operate only within Bengaluru, Karnataka, and any expansion into new territories is dependent on approvals from OEMs such as Bajaj Auto Limited. This limits the company’s ability to independently scale its geographic presence. Non-renewal or modification of these dealership agreements could hurt the company’s business operations.
The company faces the risk of unilateral termination of dealership agreements by OEMs. For instance, Bajaj Auto can terminate the agreement with a 30-day notice without assigning any reason, and in certain cases, termination can be immediate. Such a development could significantly impact revenue and disrupt business operations.
The company’s operations are entirely concentrated in Karnataka, primarily in Bengaluru, with 100% of its revenue derived from this region. This high geographical concentration increases its exposure to regional economic, political, and regulatory developments that may impact demand and operations. Any adverse developments, such as economic slowdown, infrastructure disruptions, natural disasters, or civil unrest in Bengaluru or Karnataka, could materially affect the company’s business.
The company operates in the automobile and consumer electronics sectors, which are highly sensitive to macroeconomic conditions and industry-specific factors. Any decline in vehicle or appliance demand can directly impact both product sales and associated service revenues. Any adverse changes in factors such as fuel prices, interest rates, credit availability, consumer preferences, or regulatory policies could also reduce demand for vehicles and electronics. The company’s performance is also exposed to shifts in the EV segment, where rapid technological advancements or changes in government incentives may affect demand for existing inventory.
The company, its promoters, and promoter group entities are involved in certain ongoing legal proceedings across tax and civil matters. Any adverse outcome in these legal proceedings could result in financial liabilities and increased expenses. This may impact the company’s profitability, cash flows, and overall financial condition.
As of December 31, 2025, the company had total outstanding borrowings of Rs 57.42 crore. This indicates a reliance on external debt to fund its operations and working capital requirements. Any inability to service or repay these borrowings on time could adversely affect the company’s financial position.
Application details
For Amba Auto Sales & Services IPO, eligible investors can apply as Individual investor.
| Apply as | Price band | Apply range | Lot size |
|---|---|---|---|
| Individual investor | ₹130 - ₹135 | ₹2 - ₹5 Lakhs | 1000 |