The IPO of Amba Auto Sales & Services Limited opened on April 27 and has now entered its third day.
So far, the response has been slower than expected.
However, there is hope that investors may show more interest before the issue closes.
This IPO is worth ₹65.12 crore and is a completely fresh issue.
The company is offering around 48 lakh shares.
Subscription Status So Far
The IPO started on a weak note.
Day 1: Only 15% subscription
Retail investors: 11%
NII (Non-Institutional Investors): 21%
On the second day, the numbers improved slightly:
Total subscription reached 44%
Retail category: 23%
NII category: 70%
The QIB (Qualified Institutional Buyers) category is still not active, which is also affecting overall demand.
Price Band and Investment Details
The price band for this IPO is set between ₹130 and ₹135 per share.
Retail investors need to apply for at least 2,000 shares.
This means a minimum investment of around ₹2.7 lakh.
For HNI investors, the minimum investment is 3,000 shares, which comes to about ₹4.05 lakh.
Grey Market Sentiment
The grey market is currently silent on this IPO.
The GMP (Grey Market Premium) is zero, which shows that there is no strong demand in the unofficial market.
This could be one reason why subscriptions are slow.
What Does the Company Do?
Founded in 2005, Amba Auto Sales & Services Limited is an authorized dealer of Bajaj Auto and LG Electronics India.
The company operates under two main brands:
Amba Bajaj (automobile segment)
Amba LG Best Shop (electronics segment)
It sells Bajaj bikes, scooters, and three-wheelers.
It also deals in LG products like TVs, ACs, refrigerators, and washing machines.
The company has 29 showrooms and service centers in Bengaluru, with over 100 employees.
Financial Performance
The company has shown good growth in recent years.
Total income increased from ₹211.33 crore in FY24 to ₹242.46 crore in FY25
Profit after tax (PAT) rose from ₹2.89 crore to ₹7.78 crore
This growth shows improvement in both revenue and profits.
How Will the IPO Money Be Used?
The company plans to use the funds raised from the IPO for expansion and operations.
₹6.32 crore will be used to open new showrooms and upgrade existing ones
₹43 crore will go towards working capital
The remaining amount will be used for general corporate needs
Key Companies Involved
The IPO is being managed by Capital Square Advisors as the lead manager.
Bigshare Services is the registrar, and Rikhav Securities is acting as the market maker.
Should You Keep an Eye on It?
The IPO has had a slow start, but things can change in the final days.
Investors should watch subscription numbers closely and consider company fundamentals before making any decision.
