Amagi Media Labs IPO now open: Should you subscribe?
What's the story
Amagi Media Labs, a Bengaluru-based company specializing in cloud-based broadcast and connected TV technology, has launched its initial public offering (IPO) today. The IPO will remain open for subscription until January 16. The company aims to raise ₹1,788.62 crore through this public offering. It includes a fresh issue of shares worth ₹816 crore and an offer-for-sale of ₹972.62 crore from existing shareholders such as PI Opportunities Fund I, Norwest Venture Partners X, and Accel Growth VI Holdings (Mauritius).
Offering specifics
Amagi Media Labs' IPO details and market position
The price band for Amagi Media Labs' IPO has been set at ₹343-₹361 per share. Retail investors can apply for a minimum of 41 shares, which would require an investment of ₹14,801 at the upper end of the price band. As of March 31, 2025, Amagi had a global workforce of 884 full-time employees. Of these, 652 were part of tech and engineering teams across Bengaluru (India), the US, Croatia, and Poland.
Financial breakdown
Amagi Media Labs' revenue mix and cost structure
Amagi Media Labs' revenue mix is divided into three segments: 20% from cloud modernization, 55% from streaming unification, and 25% from monetization. The company has said it doesn't participate in the advertising economy directly, but provides ad insertion technology while content owners retain control over their advertising inventory. Its main costs are cloud infrastructure, sales & marketing, and research & development.
Market impact
Post-issue market capitalization and allotment details
At the upper end of the price band, Amagi will have a post-issue market cap of ₹7,809.84 crore. 75% of the issue is reserved for qualified institutional buyers while 15% is reserved for non-institutional investors. The basis of allotment will be finalized on January 19 with shares expected to list on exchanges on January 21.
Expert opinions
Amagi Media Labs' IPO: Should you subscribe?
Arihant Capital has given a "Subscribe for listing gains" rating on the issue, citing Amagi's position to benefit from the global shift toward connected TV and FAST platforms. SBI Securities has assigned a 'Neutral' rating to the IPO, preferring to track its performance post-listing. They cautioned that consolidation in North America's media and entertainment industry could affect pricing power. At the time of writing, the GMP for the issue stood at ₹16, translating to potential listing gains of 4.4%.