Amagi Media Labs has opened its initial public offering for subscription, marking another entry in India's technology IPO landscape. The data-driven advertising technology company, which focuses on connected TV and digital video advertising, is witnessing measured market response with early indicators pointing to cautious investor sentiment.

Grey Market Signals Reflect Cautious Sentiment

The IPO is currently trading at a grey market premium of approximately 4%, significantly lower than the double-digit premiums typically seen during stronger primary market cycles. This modest premium reflects the current risk-off sentiment in equity markets and increased investor scrutiny of technology and internet-linked businesses following mixed performance of recent listings.

Business Operations and Market Position

Amagi operates in the rapidly expanding connected TV and programmatic advertising ecosystem. The company's business model centers on helping advertisers target specific audiences across streaming platforms while simultaneously enabling publishers to optimize their inventory monetization strategies.

Key operational highlights include:

• Strong presence across global markets, particularly in the United States
• Focus on connected TV advertising, benefiting from structural shift away from traditional cable
• Steady revenue growth supported by rising advertising expenditure on connected TV platforms
• Improving operational margins as scale benefits materialize

IPO Structure and Fund Utilization

The public offering comprises both fresh equity issuance and an offer-for-sale component by existing shareholders. The company plans to utilize proceeds from the fresh issue primarily for growth initiatives, technology investments, and general corporate purposes, while the OFS allows early investors to partially monetize their holdings.

Financial Performance and Risk Factors

Amagi has demonstrated consistent revenue growth in recent years, driven by increased adoption of programmatic advertising tools by global brands and rising connected TV advertising budgets. The company has also shown progress on operating metrics with margin improvements as it achieves greater scale.

However, several risk factors warrant attention:

• Exposure to cyclical advertising budgets that may soften during economic uncertainty
• Currency movement impacts given global operations
• Client concentration risks
• Competitive intensity in global advertising technology markets

Analyst Recommendations and Market Outlook

Brokerages tracking the issue are advising investors to focus on medium to long-term opportunities rather than expecting significant short-term listing gains. Anand Rathi has recommended a "subscribe-for-long-term-investors" approach, highlighting Amagi's differentiated positioning within India's technology IPO space.

Investors should monitor subscription trends, particularly institutional investor participation, as strong QIB interest could help offset subdued grey market indicators. Broader market stability will also play a crucial role in determining IPO appetite, especially for technology-focused offerings in the current volatile environment.

Amagi Media Labs, a cloud-based software-as-a-service (SaaS) company enabling media firms to stream and monetise digital video content, has successfully raised ₹805 crore from anchor investors ahead of its initial public offering. The fundraise was completed just one day before the opening of the company's ₹1,789 crore IPO, demonstrating strong institutional confidence in the Bengaluru-based technology firm.

Anchor Investment Details

The company allotted 2,22,95,799 equity shares to 42 anchor investors at ₹361 per share, representing the upper end of the IPO price band. This strategic placement aggregated approximately ₹805 crore, setting a positive tone for the public offering.

The anchor round attracted a diverse mix of domestic and overseas funds along with long-only insurance companies. SBI Mutual Fund, ICICI Prudential Mutual Fund, and HDFC Mutual Fund collectively accounted for approximately 25% of the total anchor allocation. Other prominent participants included Fidelity, Motilal Oswal MF, HDFC Life Insurance, Tata MF, Franklin Templeton MF, 360 One, Baroda BNP Paribas MF, Amundi, PGIM MF, Bandhan MF, Susquehanna International Group (SIG), Bharti AXA, Isometry Capital, Societe Generale, Goldman Sachs, Creaegis, Edelweiss Tokio Life, and New Vernon Capital.

IPO Structure and Timeline

The Amagi IPO opens for public subscription on January 13 and closes on January 16, with a price band fixed between ₹343 to ₹361 per share. At the upper end of the band, the company is valued at over ₹7,800 crore.

The proposed IPO comprises a fresh issue of shares worth ₹816 crore and an offer for sale of 2.70 crore shares valued at ₹972.60 crore by existing shareholders. The OFS includes participation from PI Opportunities Fund I, PI Opportunities Fund II, Norwest Venture Partners X - Mauritius, Accel India VI (Mauritius) Ltd, Trudy Holdings, and certain individual selling shareholders.

Fund Utilisation and Business Profile

Proceeds from the fresh issue totaling ₹550 crore will be strategically deployed to strengthen Amagi's technology and cloud infrastructure, fund inorganic growth through acquisitions, and meet general corporate expenses. The deployment is planned in phases with ₹82 crore earmarked for FY26, ₹359 crore for FY27, and ₹108 crore for FY28.

Founded in 2008, Amagi is backed by marquee investors including Accel, Avataar Ventures, Norwest Venture Partners, and Premji Invest. The company serves over 45% of the top-50 listed media and entertainment companies in India by revenue, connecting media companies with audiences using cloud-native technology for content delivery and monetisation across smart TVs, smartphones, and digital platforms.

Financial Performance

Amagi demonstrated strong financial growth, reporting revenue from operations of ₹1,162 crore in FY25, registering a 31% compound annual growth rate between FY23 and FY25. This growth was driven by new customer acquisition and increased platform usage by existing customers.

For the six-month period ended September 30, 2025, the company reported a profit of ₹6.40 crore on revenue of ₹704.80 crore. The company's operations are organised into three core segments: cloud modernisation, streaming unification, and monetisation and marketplace.

The issue allocation reserves 75% for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors. Kotak Mahindra Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, IIFL Capital Services, and Avendus Capital serve as book-running lead managers to the issue.