A Bengaluru-based dual-brand dealer of Bajaj Auto and LG Electronics hits the NSE SME with a Rs 65 crore fresh issue
Amba Auto Sales & Services Ltd., a Bengaluru-based authorised dealer of Bajaj Auto Limited and LG Electronics India Limited, opens for subscription on April 27 with the issue closing on April 29. The company operates two distinct business verticals under one roof — automobiles through the “Amba Bajaj” brand and consumer electronics through “Amba LG Best Shop” — across 28 showrooms and 1 godown as of December 31, 2025.
What the Company Does
The automobile segment covers sales and servicing of Bajaj two-wheelers — motorcycles and the Chetak EV — alongside KTM bikes and three-wheelers, across 18 service centres staffed by 112 dedicated technicians. The electronics segment retails LG consumer durables including televisions, air conditioners, refrigerators, and washing machines. The combination of a two-wheeler dealership with a consumer electronics dealership under a single operating entity is relatively uncommon and gives the business a diversified revenue base, though both segments are fundamentally low-margin, volume-driven, and highly dependent on the policies and market performance of the respective OEM partners.
As of February 28, 2026, the company had 254 permanent employees. It was incorporated in 2005, giving it over two decades of operating history with Bajaj Auto and LG Electronics — long-standing relationships that provide some revenue stability and brand recognition within its Bengaluru operating zone. The fresh issue proceeds will primarily fund working capital requirements for the growing store and service network.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | April 27, 2026 |
| Issue Closes | April 29, 2026 |
| Listing | NSE SME (May 5, 2026) |
| Price Band | Rs 130 – Rs 135 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 65.12 crore (100% Fresh Issue) |
| Lot Size | 1,000 shares (min 2 lots = 2,000 shares) |
| Min. Retail Investment | Rs 2,70,000 |
| BRLM | Capital Square Advisors Pvt. Ltd. |
| Registrar | Bigshare Services Pvt. Ltd. |
| Market Maker | Rikhav Securities Ltd. |
Financial Performance
| Particulars (Rs cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Total Income | — | 211.33 | 242.46 |
| Net Profit | — | 2.89 | 7.78 |
| PAT Margin | — | 1.37% | 3.21% |
Revenue has grown from Rs 211.33 crore in FY24 to Rs 242.46 crore in FY25, a respectable 14.7% year-on-year increase for a dealership business. More striking is the jump in net profit — from Rs 2.89 crore in FY24 to Rs 7.78 crore in FY25 — a near-tripling that pushed PAT margins from 1.37% to 3.21%.
While this improvement is notable, dealer businesses in India typically sustain PAT margins in the 1–3% range and the question is whether the FY25 level and the reportedly strong 9M FY26 numbers reflect a durable structural improvement or are influenced by one-time factors. The 9M FY26 performance has reportedly further outpaced the prior year run rate, which is what analysts flag as an eyebrow-raiser.
Valuation
At the upper band of Rs 135, the issue is valued at approximately 23x trailing earnings — a premium to the typical valuation range for dealership businesses, which ordinarily trade at single-digit to low-teen multiples on account of their thin margins and capital-intensive working capital requirements. The company has not paid any dividends since incorporation. The business model is inherently one of high topline and low margin, and sustaining the margin improvement trajectory visible in FY25 will be key to any post-listing performance.
Views: Independent analysts reviewing the issue have noted that while the company has outperformed peers in profitability from FY24 onwards, the spectacular improvement in the 9M FY26 period raises questions about durability. The issue appears aggressively priced relative to the underlying business fundamentals of an authorised dealership operation, note analysts. The structural dependence on Bajaj Auto and LG Electronics — where any policy change, commission revision, or product portfolio shift by the OEM can directly affect profitability — is a risk that the valuation does not appear to fully account for.