| Market Cap | ₹179.67 CrSpecialty Retail |
|---|---|
| P/E Ratio | 12.81xSector 61.76x |
| Promoter Holding | 71.22%Pre-Issue |
| Deal value | ₹161.6 Cr |
| Share of market cap | 89.9% |
Key highlights
- Issuance of up to 1.60 crore fully convertible warrants at a price of ₹101 per warrant
- Total fundraise aggregates to ₹161.60 crore, subject to shareholder and regulatory approvals
- Upfront payment of 25% equivalent to ₹40.40 crore required at the time of warrant allotment
- Authorized share capital to be increased from ₹20 crore to ₹35 crore to facilitate the issue
- The 105 proposed allottees include members of the promoter group and non-promoter entities
Mechanics of the ₹161.60 Crore Warrant Issue
The Board of Directors of Amba Auto Sales and Services Limited approved the issuance of up to 1,60,00,000 fully convertible warrants on a preferential basis. Each warrant is priced at ₹101, which includes a face value of ₹10 and a premium of ₹91. This pricing sits marginally above the current market price of ₹98.05.
The total issue size aggregates to ₹161.60 crore. At the time of subscription and allotment, investors are required to pay 25% of the total price, amounting to ₹25.25 per warrant or ₹40.40 crore in total. The remaining 75% must be paid upon exercise of the conversion right.
Capital Structure and Conversion Terms
- Authorized share capital will increase from ₹20 crore to ₹35 crore to accommodate the issue
- Warrants are convertible into equity shares within a maximum period of 18 months from allotment
- The 105 identified allottees include both promoter group and non-promoter persons
- Post-conversion shareholding for the promoter group is projected to reach 72.98% on a fully diluted basis
- The proposed preferential issue will not result in any change in control or management of the company
- An Extraordinary General Meeting is scheduled for December 03, 2026, to seek shareholder approval
Context of Growth: From IPO to Showroom Expansion
This fundraise follows the company’s April 2024 initial public offering, which raised ₹65.12 crore. Amba Auto, an authorized dealer for Bajaj Auto, reported an annual revenue of ₹268.68 crore and a net profit of ₹14.03 crore for the financial year ended March 31, 2026. The fresh capital arrives as the company nears the commercial launch of its sixth showroom, a two-wheeler facility, targeted for November or December 2026.
Despite a 27.37% decline in the stock price over the past year, the company maintains a Piotroski Score of 5 and a P/E of 12.81, significantly lower than the industry average of 41.7.
| Date | Announcement | Amount |
|---|---|---|
| 19 Oct 2026 | Board meeting intimation to evaluate fund raising via preferential issue of equity shares, convertible warrants, and/or debt securitiesSource: NSE filing | – |
| 29 Sep 2026 | Board meeting intimation to consider fund raising via preferential issue of securities (later deferred on 10 Oct 2026)Source: NSE filing | – |
| 24 Apr 2026 | Initial public offering (IPO) comprising a fresh issue of up to 4,824,000 equity sharesSource: sihl.in | ₹65.12 Cr |
What to watch next
- Extraordinary General Meeting (EGM) for shareholder approval on December 03, 2026
- Commercial operations commencement for Showroom 6 scheduled for November-December 2026
- Declaration of financial results for the half-year ended September 30, 2026
| Share price | ₹98.05 |
|---|---|
| Market capitalisation | ₹179.67 Cr |
| Revenue (annual) | ₹268.68 Cr |
| Net profit (annual) | ₹14.03 Cr |
| P/E (TTM) | 12.81×Sector 61.76× |
| Promoter holding | 71.22% |
| FII holding | 0%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Amba Auto Sales and Services Limited announcing the outcome of the board meeting held on November 02, 2026. Market figures from a third-party data provider.
