bhelpuri,
I'm surprised too.
How long is the video?
I've converted the Nemo movie from Divx to .AMV and it's only 198MB.
I've converted a lot of music videos (downloadable from this site in the "Samples" section). They're on average 50MB .wmv, .mpg and .avi video and they all convert to about 15MB-20MB in size.
If your original file's resolution smaller than 128x96? If it is, then it will make the .AMV file bigger than your original because the converter tool will have to increase the video size therefore making the file bigger.
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