Amagi Media Labs is set to launch its ₹1,789 crore initial public offering tomorrow, January 13, 2026, with strong early investor interest reflected in grey market trading. The cloud-based broadcast technology company's shares are currently commanding a premium of ₹37 over the issue price, representing approximately 10% upside before official listing.

IPO Structure and Timeline

The subscription window for Amagi Media Labs IPO will remain open from January 13 to January 16, 2026. The company has set an attractive price band for investors:

The fresh issue component of ₹816 crore will flow directly to the company's treasury, while the remaining ₹972.62 crore represents existing shareholders monetizing their holdings through the offer for sale route.

Grey Market Performance

As of January 12, 2026, the grey market premium stands at ₹37 on the upper price band of ₹361 per share. This unofficial trading activity suggests an estimated listing price of approximately ₹398 per share, indicating robust investor appetite for the technology company's shares. The grey market premium often serves as an early indicator of potential listing day performance.

Company Profile and Operations

Amagi Media Labs Ltd. operates as a specialized provider of cloud-based broadcast and connected TV technology solutions. Founded in 2008 and headquartered in Bengaluru, the company has established itself as a comprehensive solution provider for content creation, distribution, and monetization across traditional TV and streaming platforms.

The company's service portfolio encompasses cloud playout, content scheduling, ad insertion, and data analytics tools. Amagi's solutions enable broadcasters, content owners, and streaming services to launch and manage live linear channels on Free Ad-supported Streaming TV platforms, including major platforms like Pluto TV, Samsung TV Plus, and Roku Channel.

Financial Performance

Amagi Media Labs has demonstrated strong revenue growth trajectory in recent periods. The company's financial performance shows significant improvement:

The company successfully narrowed its losses in FY25 compared to the previous year and achieved profitability in the first half of FY26, posting a net profit of ₹6.47 crore.

Fund Utilization Strategy

The proceeds from the fresh issue will be strategically deployed across key growth areas:

• Technology Infrastructure: ₹550.06 crore allocated for technology and cloud infrastructure enhancement
• Inorganic Growth: Remaining funds earmarked for acquisitions and strategic investments
• Corporate Purposes: General corporate requirements and working capital needs

Issue Management

Kotak Mahindra Capital Co. Ltd. serves as the book running lead manager for the issue, while MUFG Intime India Pvt. Ltd. acts as the registrar. The shares will be listed on both BSE and NSE following the completion of the allotment process.

Anand Rathi has recommended a 'Subscribe – Long Term' rating for the Amagi Media Labs IPO, citing the company's strong positioning in the media streaming technology sector and recent profitability turnaround.

Company Profile and Business Model

Founded in 2008, Amagi Media Labs operates as a software-as-a-service company that connects media companies to their audiences through cloud-native technology. The company's platform enables content providers and distributors to upload and deliver video content over the internet through smart televisions, smartphones, and applications, replacing traditional cable or set-top box services.

The company also provides targeted advertising services to help content creators monetize their streaming content. Amagi's technology infrastructure has supported the streaming of several high-profile events, demonstrating its scalability and reliability:

• 2024 Paris Olympics
• Union of European Football Association tournaments
• Academy of Motion Picture Arts and Sciences Awards (Oscars)
• 2024 U.S. Presidential debates

Valuation and Financial Performance

The IPO pricing and financial metrics present a mixed but promising picture for potential investors:

The company's transition to profitability in H1 FY26 marks a significant milestone, supported by strong operating leverage that positions it well for sustained profitability in FY26.

Investment Rationale and Outlook

Anand Rathi's positive recommendation is based on several key factors that strengthen Amagi's market position. The company continues to invest in research and development to enhance scalability, automation, performance, and user experience. These investments reinforce its positioning as the "industry cloud" for video in the media and entertainment space.

Despite the positive fundamentals, Anand Rathi notes that the IPO appears fully priced at current valuation levels. However, the brokerage maintains its 'Subscribe – Long Term' recommendation, suggesting that while immediate gains may be limited, the company's strong fundamentals and market position make it attractive for long-term investors.

The recommendation reflects confidence in Amagi's ability to capitalize on the growing shift toward streaming services and cloud-based media delivery solutions, supported by its proven track record with major global events and continued technology investments.