Amagi Media Labs' IPO
- 2 days ago
- 5 min read
By Anastasia Malikova, Dennis Malaj, Gauri Khanna, Sarah Lee (LSE); Shahmir Ahmed, Alp Ceylan, Francesco Del Sesto (Bocconi)
Photo: 1981 Digital (Unsplash)
Summary of IPO
Amagi Media Labs Ltd is a Bengaluru-based software-as-a-service (SaaS) technology company founded in 2008 that provides cloud-native broadcast, content distribution and advertising monetisation solutions for the media and entertainment industry. It enables broadcasters, content owners, OTT platforms, and advertisers to create, distribute and monetise video content globally over internet-native platforms, without reliance on traditional hardware-centric infrastructure.
The IPO, which opened for subscription on 13 January and closed on 16 January 2026, is a book-built issue sized at ₹1,788.62 crore. It combines a fresh issue of equity to fund technology infrastructure and growth initiatives with an offer for sale by existing shareholders. Listing on the National Stock Exchange of India and Bombay Stock Exchange on 21 January 2026 marked Amagi’s transition to a publicly traded company, providing capital markets access to support broader global expansion and solidify its equity story at the intersection of cloud tech and media transformation.
“Amagi Media Labs raised ₹804.87 crore from 42 anchor investors ahead of its IPO, signalling solid institutional backing for its cloud-based SaaS and advertising technology platform.” – LiveMint
Company and IPO Profile
Sector: Advertising Technology (AdTech)
Exchange floated: Indian stock exchanges, BSE and NSE
Amount raised: ₹1,788.62 crore (approximately USD $196–199 million)
Offered price and number of shares: The price band was set at ₹343-361, and the IPO was priced at ₹361 per share
Over-allotment option: No over-allotment option was reported in this IPO. The issue size was fixed as above with no additional shares for stabilisation beyond the base offer.
Equity offered: Roughly 23% of Amagi’s post-IPO equity (49.5 million shares sold in IPO, including equity shares and fresh issues; estimated 216 million total post-IPO shares)
Valuation and relevant multiples at IPO:
- Market Capitalization: ₹7,810 crore (about $870 million)
- EV: ₹7,000 crore
- EV/Revenue: In FY25, Amagi’s revenue was about ₹1,163 crore, so the EV/Revenue is roughly 6×
- EV/EBITDA: The company only turned profitable recently, reporting a ₹6.47 crore net profit for Apr–Sep 2025 (compared to a ₹66 crore loss in the prior year period). EBITDA margins have been very low, so EV/EBITDA at IPO was not meaningful on trailing earnings.
Coordinators/Advisors
- Joint bookrunners and coordinators : Kotak Mahindra Capital Company was the lead banker, joined by Citigroup Global Markets India, Goldman Sachs (India) Securities, IIFL Capital Services, and Avendus Capital as joint book-running lead managers.
- Notable investors:
Pre-IPO: General Atlantic (led $100m round in 2022), Premji Invest (PI Opportunities funds), Accel India, Norwest Venture Partners, Avataar Ventures (Trudy/AVP)
Post IPO: Existing investors retained significant stakes post-IPO, e.g. Accel retains about 10% ownership. The 42 institutional anchor investors raised ₹804–805 crore. Notable domestic mutual funds include SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund; these three together accounted for about 40% of the anchor allocation
Company Overview
Amagi is a cloud-based broadcast and streaming software provider, operating in the advertising technology space. It offers SaaS solutions for broadcasters and content owners to distribute and monetise TV/OTT channels via the cloud.
Strategic Rationale
The initial public offering was a strategic opportunity for Amagi to strengthen its market positioning and meet future goals. From ₹816 crore of the fresh issue proceeds, ₹550 crore is planned to be primarily allocated toward AI, technology and cloud infrastructure investments, continuing to support development across their product range. This will scale their main services, such as Amagi Cloudport for channel playout, Amagi Planner for content scheduling and Amagi Thunderstorm for dynamic ad insertion to handle higher streaming volumes. The capital will also fund further integration of their AI tool into their platforms (Amagi Intelligence released in late 2025), which uses predictive analytics and machine learning to automate scheduling and optimise ad revenues.
The remaining funds will finance inorganic growth through acquisitions, following their purchase of Argoid AI in December 2024, which was a firm specialising in recommendation engines and programming automation. Amagi currently works with over 45% of the top 50 listed media and entertainment companies in India (by revenue) and serves 400+ content owners and 350+ distributors across 40+ countries, providing a strong foundation for their expansion plans beyond the US and Europe into Asia-Pacific and the Middle East.
Market Reaction
Amagi Media Labs priced its initial public offering with a price band of $3.82 to $4.02 per share, with bids open from January 13 to January 16, 2026. The IPO consisted of a $199 million share sale, implying that the company raised approximately $199 million in gross proceeds at pricing. Post-listing, Amagi has 216 million shares outstanding, with roughly 20% free float, and the offering also included a lock-up of ~46 million shares until mid-2027, limiting near-term supply from early holders. Subscription demand was solid but measured, indicating selective investor participation rather than broad speculative enthusiasm.
Upon listing on January 21, 2026, Amagi Media Labs opened at approximately $3.55–$3.60, representing a discount to the IPO price. Initial trading was volatile, with early rebounds from the open but continued pressure near the upper end of the IPO band. Since listing, the stock has traded in a range between an IPO-period low of ~$3.52 and a post-listing high of ~$4.34. Overall, the IPO raised approximately $216 million in gross proceeds (based on the ₹1,789 crore issue size at the upper price band of ₹361 per share and current FX rates), marking a successful outcome in meeting capital-raising objectives, although the company fell short of its targeted $1.40 billion unicorn valuation by roughly $500 million. At a latest price of $4.15 versus an IPO price of $4.02, Amagi Media Labs is trading approximately +3.2% above its IPO price, corresponding to a current market capitalisation of around $896 million on the NSEI.
Potential Risks and Downsides
Amagi Media Labs has demonstrated strong growth, supported by the rapid expansion of connected TV (CTV) and the structural shift from linear television to digital streaming. However, the company’s performance remains highly dependent on the continued growth of the CTV advertising market, projected to increase from approximately $30–35 billion in 2024 to over $50 billion by 2027. Any slowdown in digital advertising spending, particularly during economic downturns, could negatively affect revenue, as advertising budgets are cyclical and sensitive to macroeconomic conditions.
The competitive landscape also presents a significant risk. Amagi operates alongside global technology and cloud providers such as Google, Amazon, and Microsoft, which generate hundreds of billions in annual revenue and have substantially greater financial resources. Their broader ecosystems and ability to bundle services could pressure Amagi’s pricing power, margins, and client retention.
Customer concentration may also be a concern if a meaningful share of revenue is derived from a limited number of large media and streaming clients. The loss or renegotiation of key contracts could materially impact financial performance.
Additionally, Amagi’s growth strategy requires continued investment in cloud infrastructure and international expansion. High capex requirements may weigh on near-term profitability and increase execution risk.