The SME IPO of Amba Auto Sales and Services will open for subscription on Monday, with early grey market trends indicating limited listing gains as the premium stands at zero. The Rs 65 crore SME issue, which is entirely a fresh issue, will remain open for bidding till April 29 and is scheduled to list on the NSE SME platform on May 5.

The price band has been fixed at Rs 130-135 per share, with a minimum application size of 2,000 shares for retail investors, translating into an investment of Rs 2.7 lakh at the upper end.

Despite the IPO hitting the market at a time when primary activity remains active, the absence of any grey market premium suggests cautious sentiment among investors, particularly in the SME segment where listing gains have become less predictable in recent months.

About the company

Amba Auto operates as an authorised dealer for Bajaj Auto and LG Electronics, running its business under the brands Amba Bajaj and Amba LG Best Shop. The company sells two-wheelers, three-wheelers and consumer electronics products such as televisions, air conditioners and appliances.

Its operations are concentrated in Bengaluru, where it has built a network of 29 showrooms and service centres across both segments. The company also provides after-sales support through 18 service centres, catering to both automobile servicing and electronics maintenance.

Financially, the company has shown steady growth. Revenue stood at around Rs 242 crore in FY25, while profit rose to Rs 7.78 crore, reflecting improving scale in operations. For the nine months ended December 2025, the company reported revenue of Rs 203.79 crore and profit of Rs 12.11 crore.

Proceeds and IPO structure

The proceeds from the IPO will primarily be used for working capital requirements and expansion. A portion will also go toward setting up new showrooms and renovating existing outlets, aimed at strengthening the company’s retail presence.

The issue structure is typical of SME offerings, with around half the net issue reserved for non-institutional investors, while retail participation accounts for about 40%. Institutional allocation remains relatively small, reflecting the scale of the offering.

With no grey market premium currently, the IPO appears positioned more as a steady business offering rather than a listing gains play, with returns likely to depend on long-term execution rather than immediate market sentiment.

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