Amba Auto Sales & Services’ initial public offering (IPO) started on April 27 to a subdued investor response, with only 10ā11% of investors subscribing on the first day. Through a new issuance of 0.48 crore shares, the company hopes to raise ā¹65 crore; all revenues would be used for business expansion and operational needs.
The IPO’s pricing range is ā¹130 to ā¹135 per share. Retail investors must apply for at least two lots, each with 1,000 shares; in the highest price range, this means a minimum commitment of about ā¹1.35 lakh. Subscriptions will be accepted until April 29. Allotment is anticipated on April 30, and the issue will be listed on the NSE SME platform on May 5.
Early demand is minimal across all categories, according to subscription data. While non-institutional investors have demonstrated somewhat greater interest, the retail segment has seen little engagement. The qualified institutional buyer (QIB) segment, however, has not yet made a bid, indicating a cautious attitude.
The grey market premium (GMP), another important metric, stays at zero. This implies that there will be little short-term listing benefit because the shares are now anticipated to list at or close to their issue price.
With 29 locations in the automotive and electronics sectors, the company functions as an authorized dealer for Bajaj Auto and LG Electronics. It sells and maintains electric cars, motorbikes, and consumer durable goods including refrigerators, TVs, and air conditioners.
The money raised from the IPO will be utilized to cover working capital needs, open new stores, and renovate existing ones. Despite the company’s diverse retail footprint, investor perception is apprehensive due to the delayed first subscription and lack of GMP, particularly in the SME IPO area.
