Amagi Media Labs has announced its Initial Public Offering (IPO) worth ₹1,789 crore, structured as a book-built issue combining fresh equity and existing shareholder divestment. The offering represents a significant capital market debut for the media technology company.

IPO Structure and Components

The IPO comprises two distinct components with different beneficiaries and purposes:

Fresh Issue Details

The fresh issue component involves 2.26 crore new shares valued at ₹816 crore. These proceeds will flow directly to Amagi Media Labs, providing the company with capital for business expansion, technology development, and other corporate purposes. The fresh issue represents approximately 45.6% of the total IPO value.

Offer-for-Sale Component

The OFS portion consists of 2.69 crore existing shares worth ₹972.62 crore, allowing current shareholders to partially exit their investments. This component accounts for the larger portion of the IPO at 54.4% of the total offering value. The OFS proceeds will go to the selling shareholders rather than the company.

Book-Built Process

Amagi Media Labs has opted for the book-built mechanism for price discovery, which allows institutional and retail investors to bid within a specified price band. This process enables market-driven valuation based on investor demand and company fundamentals.

Amagi Media Labs, a cloud-based SaaS company that enables media firms to stream and monetize digital video content, has opened its initial public offering for subscription today, January 13. The issue, priced in the range of ₹343-361 per share, will remain open until January 16 and represents one of the significant technology IPOs in the current market.

Strong Anchor Investor Response

The company demonstrated strong institutional confidence by raising ₹804.87 crore from 42 anchor investors on January 12, one day prior to the public opening. The allocation was completed at the maximum price band of ₹361 per share, with 2.22 crore equity shares distributed among institutional investors.

Prominent domestic mutual funds including SBI Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life AMC, HDFC AMC, Motilal Oswal AMC, Franklin India, and PGIM India participated in the anchor round. Insurance providers such as HDFC Life Insurance, Bharti Axa Life Insurance, and Edelweiss Life Insurance also secured allocations.

IPO Structure and Timeline

The public issue follows the standard allocation pattern with 75% reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors. The company has outlined a clear post-issue timeline for investor convenience.

Financial Performance Highlights

Amagi has demonstrated robust financial growth with operational revenue reaching ₹1,162 crore in FY25, reflecting a compound annual growth rate of 31% from FY23 to FY25. This growth trajectory has been driven by new customer acquisitions and increased engagement from existing platform users.

For the six-month period ending September 30, 2025, the company reported total revenue of ₹704.8 crore and achieved profitability with a net profit of ₹6.4 crore, marking a significant milestone in its journey toward sustained profitability.

Issue Details and Fund Utilization

The ₹1,788.6 crore IPO comprises a fresh issue of ₹816 crore and an offer for sale of ₹972.6 crore from existing shareholders. The selling shareholders include PI Opportunities Fund I, PI Opportunities Fund II, Norwest Venture Partners X – Mauritius, Accel India VI (Mauritius) Ltd, Trudy Holdings, and several individual stakeholders.

The deployment will be staggered across fiscal years, with ₹82 crore allocated for FY26, ₹359 crore for FY27, and ₹108 crore for FY28.

Market Expectations and Analyst Views

The grey market premium currently stands at ₹20, suggesting an estimated listing price of ₹381 per share, which represents a 5.54% premium over the upper price band. However, the GMP has shown a downward trend over the past seven sessions, with the premium ranging from ₹0.00 to ₹43.

Brokerage firms have provided mixed recommendations. Anand Rathi has assigned a "Subscribe – Long Term" rating, noting the company's 6.7 times FY25 price-to-sales ratio and strong positioning as an "industry cloud" for video in the media and entertainment sector. SBICAP Securities has adopted a more cautious stance with a "Neutral" rating, citing ongoing consolidation in the global media and entertainment sector, particularly in North America, which could impact pricing power.

The IPO is managed by leading investment banks including Kotak Mahindra Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, IIFL Capital Services, and Avendus Capital, with MUFG Intime India serving as the registrar.