NewsIPOAmagi Media Labs IPO Sees 3% Subscription on Day 1; Analysts Recommend Long-Term Investment Despite Modest GMPAmagi Media Labs IPO Sees 3% Subscription on Day 1; Analysts Recommend Long-Term Investment Despite Modest GMP
Amagi Media Labs IPO opened with 3% subscription on Day 1, receiving bids for 7.64 lakh shares against 2.73 crore offer size. Retail investors showed strongest interest at 13% while institutional participation remained limited. The company is raising ₹1,789 crore at ₹343-361 per share, with listing scheduled for January 21. Despite modest GMP of 5.54%, analysts recommend long-term investment citing the SaaS company's global exposure and positioning in growing digital advertising sector.
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Amagi Media Labs' initial public offering opened for public subscription on January 13 with a cautious market response, achieving 3% subscription on the first day. The company received bids for approximately 7.64 lakh shares against the total offer size of 2.73 crore shares, according to NSE data as of 11:30 AM.
Subscription Breakdown by Investor Category
The IPO showed varied interest across different investor segments during the opening day:
| Investor Category | Subscription Rate |
|---|---|
| Retail Individual Investors (RII) | 13% of reserved portion |
| Non Institutional Investors (NII) | 2% of allocated portion |
| Qualified Institutional Buyers (QIB) | No substantial bids |
Retail Individual Investors demonstrated the strongest interest, booking 13% of their reserved portion, while institutional participation remained limited with QIBs yet to place any substantial bids.
IPO Structure and Timeline
Amagi Media Labs is raising ₹1,789 crore through this public offering, structured as follows:
| Component | Amount |
|---|---|
| Fresh Issue | ₹816 crore |
| Offer for Sale | ₹973 crore |
| Price Band | ₹343-361 per share |
| Minimum Investment | ₹14,801 (41 shares at upper band) |
The IPO remains open for public bidding until January 16, with allotments expected to be finalized by January 19 and listing scheduled for January 21.
Grey Market Premium and Anchor Investment
The unlisted shares of Amagi Media Labs were trading with a grey market premium of 5.54% over the IPO price, according to data from Investorgain and IPO Watch. This GMP has declined from the 10.25% quoted earlier.
Prior to the public opening, the company successfully raised ₹804.87 crore from 42 anchor investors on January 12. The anchor allocation included ₹613 crore to 11 domestic mutual funds and ₹53.98 crore to insurance companies.
Analyst Recommendations
Despite the modest initial response, analysts maintain a positive long-term outlook for the IPO. Anand Rathi advised investors to subscribe for the long term, noting that at the upper price band, the company is valued at 6.7x FY25 P/S with a post-issue market capitalization of ₹78,098 million. The brokerage highlighted that Amagi has turned profitable in H1 FY26 and is well-positioned to deliver full-year profitability in FY26.
Prasenjit Paul from 129 Wealth Fund emphasized that Amagi represents a different proposition from most recent Indian IPOs, being a technology-led, SaaS-oriented business with meaningful global exposure. He noted the company's positioning in the scalable segment of programmatic digital advertising and cloud-based media services, which benefits from the ongoing shift of advertising budgets from traditional television to data-driven platforms.
Company Profile and Market Position
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 streaming through smart televisions, smartphones, and applications, while also providing targeted advertising services. Their technology has powered streaming for major events including the 2024 Paris Olympics, UEFA football tournaments, the Oscars, and the 2024 U.S. Presidential debates.
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