Amagi Media Labs' ₹1,789.00 crore initial public offering entered its third and final day of bidding with marginal improvement in investor sentiment. The grey market premium has edged up to around 7% from approximately 6%, signaling slightly better though still cautious expectations of listing gains amid volatile market conditions and heightened valuation scrutiny for new-age technology companies.

Subscription Status and Market Response

By the close of Day 2, the IPO received a subdued response with overall subscription at just 13%. The issue received bids for 35.11 lakh shares against 2.72 crore shares on offer, reflecting muted investor interest across categories.

Retail Individual Investors demonstrated relatively stronger participation compared to other categories, while Qualified Institutional Buyers remained the most cautious segment.

Grey Market Premium Analysis

According to unofficial market sources, Amagi Media Labs' IPO is quoting at a grey market premium of around 7%, translating to roughly ₹27.00 over the issue price of ₹361.00. The GMP has gradually risen from around 4% earlier, reflecting modest improvement in sentiment. At current levels, the stock is expected to list near ₹388.00, though expectations remain restrained due to choppy market conditions.

IPO Structure and Timeline

The ₹1,788.62 crore issue comprises a fresh issue of ₹816.00 crore and an offer-for-sale worth ₹972.62 crore by existing shareholders. The IPO operates within a price band of ₹343.00–₹361.00 per share and remains open for subscription until January 16, 2026.

Kotak Mahindra Capital Co. Ltd. serves as the book-running lead manager, while MUFG Intime India Pvt. Ltd. acts as the registrar for the offering.

Financial Performance and Business Overview

Amagi Media Labs operates in the connected TV and programmatic advertising space, enabling advertisers to reach audiences across streaming platforms while helping publishers monetize digital inventory effectively. The company has established a strong global presence, particularly in the US market where CTV advertising continues gaining traction.

The company reported consistent revenue growth driven by rising global advertising spends on connected TV and wider adoption of programmatic advertising solutions. Operating performance has improved, aided by scale-led efficiencies.

Fund Utilization and Investment Considerations

Of the total proceeds, ₹550.06 crore will be deployed towards enhancing technology capabilities and cloud infrastructure. The remaining funds will support potential inorganic growth opportunities and general corporate purposes. Brokerages tracking the IPO advise investors to approach the offering with a medium to long-term perspective rather than chasing near-term listing gains, citing Amagi's positioning in the connected TV ecosystem and improving financial profile as key differentiators.

Amagi Media Labs' initial public offering encountered significant headwinds as investor enthusiasm remained notably subdued on the second day of bidding. The ₹1,788.6 crore issue managed to attract subscriptions worth only 0.10 times the total offering by 2:54 pm, signaling cautious market sentiment toward the ad-tech and media-technology sector.

Subscription Details Across Investor Categories

The subscription pattern revealed varying levels of interest among different investor segments, though all remained well below expectations.

The absence of any bids from qualified institutional buyers particularly highlighted the lukewarm reception, as this segment typically drives significant participation in public offerings. Retail investors showed relatively better engagement compared to other categories, though their 0.45 times subscription still fell considerably short of full allocation.

IPO Structure and Pricing

The Bengaluru-based company structured its public offering as a combination of fresh capital raising and existing shareholder exits.

The IPO is scheduled to conclude on January 16, 2025, with the price band set between ₹343 and ₹361 per share. At the upper end of this range, the company commands a valuation exceeding ₹7,800 crore.

Pre-IPO Fundraising and Fund Utilization

Prior to the public offering, Amagi Media Labs successfully secured approximately ₹805 crore from anchor investors, demonstrating institutional confidence despite the subsequent tepid public response. The anchor investor base included prominent mutual funds such as SBI Mutual Fund, ICICI Prudential Mutual Fund, and HDFC Mutual Fund.

The company has outlined a strategic deployment plan for the ₹550 crore proceeds from the fresh issue, focusing on technology enhancement and growth initiatives.

The funds will primarily support strengthening Amagi's technology and cloud infrastructure, facilitate inorganic growth through strategic acquisitions, and address general corporate requirements. This phased approach reflects the company's measured expansion strategy across multiple financial years.

The weak subscription numbers suggest investor caution toward the ad-tech and media-technology space, despite the company's established market position and anchor investor backing. The final subscription figures and pricing outcome will depend on investor response during the remaining bidding period.