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.

Amagi Media Labs' initial public offering opens for subscription today, January 13, 2026, marking a significant milestone for the Bengaluru-based cloud broadcast technology company. The IPO will remain open until January 16, with the company seeking to raise ₹1,788.62 crore through a combination of fresh equity and existing shareholder sales.

IPO Structure and Pricing Details

The company has established a price band between ₹343 to ₹361 per share for the public offering. The issue structure demonstrates a balanced approach to capital raising and liquidity provision for existing investors.

Retail investors can participate with a minimum investment of 41 shares, requiring ₹14,801 at the upper price band. The allocation structure reserves 10% for retail investors, 15% for non-institutional investors, and 75% for qualified institutional buyers.

Mixed Analyst Recommendations

Brokerage firms have presented contrasting views on the IPO's investment merit. Arihant Capital has assigned a "Subscribe for listing gains" rating, highlighting Amagi's strategic positioning in the growing connected TV and FAST (Free Ad-Supported Streaming Television) platforms market. The brokerage emphasized the company's end-to-end, cloud-native platform and AI-driven capabilities as key differentiators for customer penetration and revenue growth.

Conversely, SBI Securities has adopted a more cautious stance with a neutral rating. The brokerage expressed preference for tracking the company's performance over several quarters post-listing, citing potential challenges from consolidation in the global media and entertainment industry, particularly in North America, which could impact pricing power.

Company Operations and Market Position

Founded in 2008, Amagi Media Labs operates as a global provider of cloud-based broadcast and connected TV technology solutions. The company serves media organizations with comprehensive solutions spanning content creation, distribution, and monetization across traditional television and streaming platforms.

As of March 31, 2025, the company employed 884 full-time staff globally, with 652 personnel dedicated to technology and engineering across offices in Bengaluru, the United States, Croatia, and Poland. An additional 181 employees work in customer-facing roles, supporting the company's global client base.

Financial Performance and Market Valuation

At the upper price band of ₹361, the issue reflects a price-to-sales multiple of 6.40x based on FY25 revenue. The company has demonstrated operational improvements, with gross margins expanding to 70% from 65%, driven by its land-and-expand business model and strong net revenue retention from existing customers.

Amagi's post-issue market capitalization is expected to reach approximately ₹7,809.84 crore at the upper price band. In the grey market, shares were trading at a premium of ₹17, suggesting potential listing gains of around 5% over the issue price.

IPO Timeline and Management

The basis of allotment is scheduled for January 19, 2026, with stock listing expected on January 21, 2026. Kotak Mahindra Capital, Citigroup, Goldman Sachs, IIFL Capital, and Avendus Capital serve as book running lead managers, while MUFG Intime India acts as the registrar to the issue.

Selling shareholders in the offer-for-sale component include PI Opportunities Fund I, Norwest Venture Partners X, and Accel Growth VI Holdings (Mauritius). The company plans to utilize net proceeds from the fresh issue for inorganic growth through acquisitions and general corporate purposes.