Amagi Media Labs' ₹1,789 crore IPO opens today: Analysts advise whether to subscribe or skip

The initial public offering (IPO) of Amagi Media Labs will open for subscription on Tuesday, January 13, and close on January 16. The company plans to raise ₹1,788.62 crore through the IPO, which includes fresh issue of shares and an offer-for-sale component.

Should You Subscribe?

Arihant Capital has recommended a "Subscribe for listing gains" rating on the issue.

The brokerage said Amagi is well-placed to benefit from the ongoing shift of audiences and advertisers towards connected TV and FAST platforms globally. It added that the company's end-to-end, cloud native platform and AI driven capabilities should aid deeper customer penetration, higher monetisation, and sustained revenue growth.

Arihant Capital also mentioned Amagi's strong customer retention, growing global adoption, and continued investments in technology and data analytics. These factors, it said, should help the company scale efficiently while strengthening its position as a long term technology partner for media companies.

At the upper end of the price band of ₹361, the issue is valued at a price-to-sales multiple of 6.4x, based on FY25 revenue.

SBI Securities, meanwhile, has assigned a 'Neutral' rating to the IPO.

The brokerage said it would prefer to track the company's performance for a few quarters post listing. While Amagi appears close to turning profitable for the full year FY26 based on its H1FY26 numbers, SBI Securities cautioned that consolidation in the global media and entertainment industry, particularly in North America, could impact the company's pricing power.

About The IPO

Amagi Media Labs has fixed the price band for its issue between ₹343 to ₹361 per share. Retail investors can bid for a minimum lot of 41 shares, requiring an investment of ₹14,801 at the upper end of the band, and in multiples thereafter. 10% of the issue has been reserved for retail investors.

For small HNIs, the minimum application size is 574 shares, translating into an investment of ₹2,07,214. For large HNIs, the minimum lot size is 2,788 shares, which requires an investment of about ₹10 lakh.

What Is The GMP Indicating?

In the unlisted market, shares of Amagi Media Labs were trading at a premium of ₹17, indicating a potential listing gain of around 5% over the issue price.

Grey market premiums, however, only reflect unofficial market sentiment and are subject to sharp fluctuations.

Use Of Proceeds

The IPO comprises a fresh issue of shares worth ₹816 crore and an offer-for-sale of ₹972.62 crore. Selling shareholders include PI Opportunities Fund I, Norwest Venture Partners X, and Accel Growth VI Holdings (Mauritius), among others.

The company plans to utilise a portion of the net proceeds to fund inorganic growth through unidentified acquisitions and for general corporate purposes. At the upper end of the price band, Amagi is expected to command a post issue market capitalisation of around ₹7,809.84 crore.

As per the issue structure, 75% of the IPO has been reserved for qualified institutional buyers, while 15% is earmarked for non-institutional investors.

About the Company

Amagi Media Labs is positioned as a global player in cloud-based broadcast and connected TV technology. Founded in 2008 and headquartered in Bengaluru, the company provides end-to-end solutions for content creation, distribution, and monetisation across traditional television and streaming platforms.

As of March 31, 2025, Amagi had 884 full time employees globally. Of these, 652 were part of the technology and engineering teams across Bengaluru, the US, Croatia, and Poland. Another 181 employees were in customer facing roles.

In an interaction with CNBC-TV18, Amagi Media Labs said its revenue mix comprises 20% from cloud modernisation, 55% from streaming unification, and 25% from monetisation. The company added that it is seeing secular growth across all three segments.

Amagi Media Labs clarified that it does not participate in the advertising economy. It said content owners retain control over advertising inventory, while Amagi provides the ad insertion technology.

The company said its key cost buckets include cloud infrastructure, sales and marketing, and research and development. It added that strong net revenue retention and growth from existing customers are driving performance.

Amagi said its land-and-expand model is delivering operating leverage, with gross margins improving to 70% from 65%.

Kotak Mahindra Capital, Citigroup, Goldman Sachs, IIFL Capital, and Avendus Capital are the book running lead managers to the issue, while MUFG Intime India is the registrar.

The basis of allotment is scheduled for January 19, with the stock expected to list on the exchanges on January 21.