Amba Auto Sales and Services IPO
Amba Auto Sales and Services LtdSME
This IPO has listed.
- Open date
- 27 Apr 2026
- Close date
- 29 Apr 2026
- Min. Investment
- ₹2,70,000
- Lot Size
- -
- Fresh Issue
- ₹65.12 Cr
- Price Range
- -
- Face Value
- -
- IPO Document
- -
Subscription rate
- Qualified Institutional Buyers1.75x
- Non-Institutional Investors1.42x
- Retail-Individual Investors0.70x
- Total1.18x
Schedule
- Completed: IPO open date27 Apr 2026
- Completed: IPO close date29 Apr 2026
- Completed: Allotment date30 Apr 2026
- Completed: Funds unblock or debit4 May 2026
- Completed: Tentative listing date5 May 2026
About
Promoter shareholding in Amba Auto Sales and Services Ltd, before and after the issue.
| Promoter | Pre-issue shares | Pre-issue % | Post-issue shares | Post-issue % |
|---|---|---|---|---|
| Pradeep Kumar Lohia | 40,50,000 | 30.00% | 40,50,000 | 22.10% |
| Rakesh Kumar Lohia | 44,96,400 | 33.31% | 44,96,400 | 24.54% |
| Vikash Kumar Lohia | 44,96,400 | 33.31% | 44,96,400 | 24.54% |
| Rachna Lohia | 1,800 | 0.01% | 1,800 | 0.01% |
| Shilpy Lohia | 1,800 | 0.01% | 1,800 | 0.01% |
| Harsh Kumar Lohia | 1,800 | 0.01% | 1,800 | 0.01% |
| Sakshi Lohia | 1,800 | 0.01% | 1,800 | 0.01% |
Amba Auto Sales and Services IPO Strengths & Risks
- Founder led company supported by a highly experienced and professional management team.
- Company is having dealership of leading brands in Two wheelers, Three wheelers and Household Electronics products. Company is rendering quality after sales service to its customers.
- High consistency and success rates in keeping the customers across products.
- Growth opportunities in existing showrooms and opening up of new showrooms and service centres.
- Ability to attract and retain high trained technical staff for all the vehicles.
- Risks Relating to the Business: The company's success depends on the value, perception, marketing and overall competitiveness of its OEMs in India. Any damage to ours or the company's OEMs' brands or its failures to compete effectively in India could materially and adversely affect the company's business, results of operations and financial condition.
- Risks Relating to the Business: The company's high debt-equity ratio and dependence on working capital financing may adversely impact its financial flexibility and growth.
- Risks Relating to the Business: The company has experienced negative cash flows in the past, and may experience negative cash flows in the future, which could adversely impact its operations and growth plans.
- Risks Relating to the Business: The company is subject to the significant influence of, and restrictions imposed by its OEMs pursuant to the terms of the company's dealership agreements that may adversely impact its business, results of operations, financial condition and prospects, including the company's ability to expand into new territories.
- Risks Relating to the Business: The company's business operations are substantially concentrated in the state of Karnataka, primarily in Bengaluru, and any adverse developments in this region could have a material adverse effect on its business, results of operations, and financial condition.
- Risks Relating to the Business: The automotive industries are sensitive to changing economic conditions and various other factors. Any decline in demand in the products offered by the Company, their parts, accessories or related hardware by individuals or entities may adversely impact its business prospects and results of operations.
- Risks Relating to the Business: Increasing competition across automotive and electronic appliance dealerships, driven by online and offline marketing strategies, may adversely affect its profitability and growth.
- Risks Relating to the Business: Dependence on OEM incentives, marketing programs, and brand perception may have adverse impact on the company's sales directly impacts its profit margins and adversely affects the company's financial conditions and results of operations.
- Risks Relating to the Business: The Company is dependent on external suppliers for its product requirements. Any delay or failures on the part of the external suppliers to deliver products, may materially and adversely affect its business, profitability and reputation.
- Risks Relating to the Business: The company's statutory auditor was unable to perform physical verification of inventory, resulting in a qualified audit report for FY 2023-24
- Risks Relating to the Business: There have been past instances of discrepancies and non-compliances in filings with the Registrar of Companies under the Companies Act, which may result in penalties or punitive actions against the Company in relation to the same, which could adversely affect its business, financial condition and results of operations.
- Risks Relating to the Business: There has been a delay in executing gift deeds in relation to the gift of certain equity shares of the Company, which may affect the validity of such transfers and could lead to regulatory or legal challenges.
- Risks Relating to the Business: There is a risk of regulatory penalties arising from potential disagreement with regulatory authorities regarding the classification of its historical strategic arrangement.
- Risks Relating to the Business: The Company and the members of its Promoter Group are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on the company's business, results of operations and financial condition.
- Risks Relating to the Business: There have been instances of delayed filings in the past with certain Regulatory Authorities. If the Regulatory Authorities impose any monitory penalties on the company or take any punitive actions against the Company in relation to the same,the company's business, financial condition and results of operations could be adversely affected.
- Risks Relating to the Business: Failures to successfully implement its growth strategy including opening of new stores location and service centres and penetrating deeper into existing geographic locations, may adversely affect its financial condition and results of operations.
- Risks Relating to the Business: The company may be subject to labour unrest, slowdowns, and increased wage costs, which could adversely impact its profitability and overall business operations.
- Risks Relating to the Business: Any termination of existing dealership agreements or closure of the company's showrooms, retail outlets, or service centres, due to various unforeseen circumstances, and any restrictions on opening of new showrooms, retail outlets, or service centers may have a material adverse impact on its revenue and results of operations.
- Risks Relating to the Business: The company operates its registered office and stores on premises that are taken by the company on a leasehold basis. The company's inability to renew the lease agreements or any adverse impact on the title or ownership rights of its landlords in relation to such premises, may impede the company's effective operations.
- Risks Relating to the Business: The company's inability or failures to maintain optimum inventory levels or any significant inventory losses due to theft, fire, flood, earthquake, damage, or obsolescence may adversely affect its business, results of operations, and financial condition.
- Risks Relating to the Business: Contribution of vehicle insurance to revenue, dependence on dealer-facilitated insurance sales, and related risks could adversely affect overall business operations and financial performance.
- Risks Relating to the Business: The company's operations are subject to extensive and evolving governmental laws and regulations, including sectorspecific norms and state-specific guidelines. Non-compliance, increased compliance costs, or the enactment of new restrictive laws could adversely affect its business, operating results, and prospects.
- Risks Relating to the Business: Any adverse change in regulations governing its products, may adversely impact its business prospects and results of operations.
- Risks Relating to the Business: The company is required to obtain certain licenses, regulatory permits and approvals for setting up its dealership and undertake the company's operation. Any delay or inability to obtain such approvals may have an adverse impact on its business.
- Risks Relating to the Business: Licenses and insurance policies required to be maintained by the Company are in the old name of the Company.
- Risks Relating to the Business: A failures of its information systems, any security breach, or unauthorized disclosure of confidential information or privacy could have a material adverse effect on its business, operations, and reputation.
- Risks Relating to the Business: Fraud or misconduct by the company's employees could adversely affect its reputation, business, results of operations, and financial condition.
- Risks Relating to the Business: Significant capital outlays for facility upgrades and expansions may not yield expected returns and could strain its financial resources.
- Risks Relating to the Business: The Company is using a Logo, which is not registered with the Trade Mark Authority and copyrights authority and the Company has also made an application for registration of its trademark and copyright, which is under process of registration. The company is unable to assure that the future viability or value of any of its intellectual property or that the steps taken by the company to protect the proprietary rights of the Company will be adequate.
- Risks Relating to the Business: The company's involvement in related party transactions, both current and future, may present conflicts of interest and potentially adverse impacts on its financial performance.
- Risks Relating to the Business: The company's Promoters will continue to hold a significant equity stake in the Company after the Issue and their interests may differ from those of the other shareholders.
- Risks Relating to the Business: The company's Promoters, Directors and Key Managerial Personnel, possess interests in the Company beyond their standard compensation, including through transactions that may not always be at arm's length, potentially affecting its financial position.
- Risks Relating to the Business: The success of the company's business depends substantially on its manpower including senior management personnel and key managerial personnel. The company's inability to attract or retain such manpower could adversely affect its business and operations.
- Risks Relating to the Business: The company's success depends upon its ability to attract, hire, train and retain trained manpower while also maintaining low labour costs.
- Risks Relating to the Business: Delays in realizing funds from this Initial Public Offering could adversely impact its strategic implementation schedule and financial performance.
- Risks Relating to the Business: Certain information contained in this Red Herring Prospectus relies on management estimates, and the company cannot guarantee the absolute completeness or accuracy of such data.
- Risks Relating to the Business: Charges created for Secured Loan against the Property and assets of Company, Promoter, and Promoter Group.
- Risks Relating to the Business: The company's business is capital intensive, and difficult conditions in global and Indian capital markets and the broader economy may lead to limited availability of funds, adversely affecting its business and results of operations.
- Risks Relating to the Business: The company's business operations require significant working capital. If the company experiences insufficient cash flows to meet required payments on its working capital requirements, there may be an adverse effect on the results of the company's operations.
- Risks Relating to the Business: The company has availed unsecured and secured loans from banks and other financial institutions, which may be recalled on demand thereby impacting its liquidity, and financial position.
- Risks Relating to the Business: The company is subject to restrictive covenants under its financing agreements that could limit the company's flexibility in managing its business or to use bank balance or other assets. Any defaults may adversely affect the company's cash flows, business, results of operations and financial condition.
- Risks Relating to the Business: Few of its members of Promoter and Directors have provided personal guarantees for loan facilities obtained by the Company, and any failures or default by the Company to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters/Directors and thereby, impact the company's business and operations.
- Risks Relating to the Business: There is an excessive dependence on a few lenders in respect of loan facilities obtained by the Company.
- Risks Relating to the Business: The company's insurance coverage may not be adequate to protect the company against all potential losses, which may have a material adverse effect on its business, financial condition and results of operations.
- Risks Relating to the Business: Industry information included in this Red Herring Prospectus has been derived from an industry report exclusively commissioned and paid for by the company for the purposes of the Issue.
- Risks Relating to the Business: Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- Risks Relating to the Business: If the company fails to maintain an effective system of internal controls, the company may not be able to successfully manage or accurately report its financial risk.
- Risks Relating to the Business: The average cost of acquisition of Equity Shares held by the company's Promoters could be lower than the Issue Price.
- Risks Relating to the Business: The Company has not paid any dividends till now and there can be no assurance that the company will pay dividends in future. The company's ability to pay dividends in the future will depends upon a variety of factors such as future earnings, financial condition, cash flows, working capital requirements, and restrictive covenants in its financing arrangements.
- Risks Relating to the Business: Contingent liabilities and commitments, which, if they materialize, may affect financial condition of the Company.
- Risks Relating to the Business: Disproportionate Increase in Inventories and Trade Receivables May Adversely Affect its Operating Cash Flows and Liquidity.
- Risks Relating to the Business: Concentration of business operations in two principal dealership verticals and dependence on two manufacturers may adversely affect its financial performance and business prospects.
- Risks Relating to the Business: Margins earned from services and repair vertical and spare parts and accessories distribution vertical may be impacted by pricing guidelines set by OEMs which may adversely affect financial condition and results of operations.
- Risks Relating to the Business: Downgrade in credit ratings of the Company could materially adversely affect business and financial condition and ability to raise capital in the future.
- Risks Relating to the Business: The Company may be subject to significant liability should there be any deficiencies in any of the vehicles sold by the Company or services provided resulting in injury or death.
- Risks Relating to the Business: The Company may not be able to complete, or achieve the expected benefits from, current or future dealership acquisitions which could materially adversely affect the business operations and overall financial stability
- Risks Relating to the Business: The Company has incurred significant capital expenditure during the last three FYs and the company may require substantial financing for business operations and planned capital expenditure and the failures to obtain additional financing on terms commercially acceptable may adversely affect its business operations and overall financial stability.
- Risks Relating to the Business: The company relies on self-declarations and information provided by one of its Directors regarding his experience, and the absence of complete documentary evidence for certain periods may result in regulatory scrutiny or adverse perceptions.
- Risks Relating to the Business: The Company's intellectual property rights may be subject to infringement or it may breach third party intellectual property rights.
- Risks Relating to the Business: Significant failures or disruption of information technology systems could adversely impact business, results of operations and financial performance of the Company.
- Risks Relating to the Business: Most of Directors of the Company does not have any prior experience of being a director in any other listed company in India.
- Risks Relating to the Business: The company's Outstanding Bank Guarantees Issued in Favour of OEMs May Be Invoked, Which Could Adversely Affect its Liquidity and Business Operations.
- Risks Relating to the Business: Accidents and natural disasters could result in the slowdown or stoppage of business and could also cause to incur liabilities arising from human fatalities and damage to property of the Company.
- Risks Relating to the Business: The Company's funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and management will have broad discretion over the use of the Net Proceeds.
- Risks Relating to the Business: The company cannot assure that the deployment of the Net Proceeds in the manner intended by the Company will result in an increase in the value of investment.
- Risks Relating to the Business: The Company will be subject to increased compliance requirements and associated costs as a publicly listed company.
