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.

The ₹1,789 crore Amagi Media Labs IPO entered its second day of bidding with modest improvement in market sentiment, as reflected by an uptick in grey market premium and selective investor participation across different categories.

Grey Market Premium Shows Marginal Improvement

The grey market premium for Amagi Media Labs has increased to approximately 6%, translating to roughly ₹20 over the issue price of ₹361. This represents an improvement from the earlier 4% premium, suggesting marginally enhanced investor expectations despite prevailing market volatility and heightened scrutiny of new-age technology companies.

Subscription Status Reveals Mixed Investor Response

By the close of Day 1, the IPO demonstrated selective demand patterns across different investor categories. The overall subscription stood at 6%, with bids received for 17.48 lakh shares against the total offering of 2.72 crore shares.

Retail investors displayed comparatively stronger interest, while institutional participation remained notably restrained, with QIBs placing no bids for their reserved portion.

IPO Structure and Timeline

The public offering comprises a fresh issue of ₹816 crore and an offer-for-sale of ₹972.62 crore by existing shareholders. The IPO remains open for subscription until January 16, 2026, with a price band set between ₹343 and ₹361 per share.

Financial Performance and Fund Utilization

Amagi operates in the connected TV and programmatic advertising sector, serving advertisers and publishers across streaming platforms with a strong global presence, particularly in the US market. The company has demonstrated consistent revenue growth and improving profitability metrics.

The company plans to allocate ₹550.06 crore from the IPO proceeds toward strengthening technology capabilities and cloud infrastructure, while remaining funds will support inorganic growth opportunities and general corporate requirements.

Market Outlook and Investment Considerations

Brokerages monitoring the offering suggest a cautious approach, recommending investors view the IPO through a medium to long-term perspective rather than focusing on short-term listing gains. Anand Rathi highlighted Amagi's positioning in the connected TV ecosystem and expanding global footprint as differentiating factors, while noting valuation comfort and market conditions as near-term variables affecting performance expectations.