Amagi Media Labs IPO Day 3: Subscription Status and Market Outlook
The initial public offering of Amagi Media Labs Ltd continues its journey through the bidding process. By the second day of bidding on Wednesday, January 14, the IPO achieved a 13% subscription rate. This SaaS company specializes in helping media firms stream and monetize digital video content.
Subscription Details and Investor Categories
Breaking down the subscription numbers reveals interesting patterns. The retail portion shows stronger interest with 49% subscription. Meanwhile, the non-institutional investor portion stands at 8% booked. Qualified institutional buyers have submitted bids for 3% of their allocated portion.
Overall, investors have bid for 35,11,035 shares against the total offer of 2,72,66,589 shares. These figures were recorded at 17:00 IST according to BSE data.
The company has structured its offering with clear allocations. Qualified institutional buyers receive 75% of the total issue. Non-institutional investors get 15%, while retail investors have access to the remaining 10%.
Grey Market Premium and Price Expectations
Today's grey market premium for Amagi Media Labs stands at ₹27. This premium indicates what investors are willing to pay above the official issue price. Considering the upper end of the IPO price band at ₹361 per share, the estimated listing price reaches ₹388. This represents a 7.48% increase over the IPO price.
Grey market activity over the last ten sessions shows a downward trend. The current GMP of ₹43 has declined from previous levels. Experts note that the highest recorded GMP reached ₹43, while the lowest touched ₹0.00.
Key Dates and Timeline
The IPO subscription period began on Tuesday, January 13 and will conclude on Friday, January 16. The price band has been set between ₹343 and ₹361 per share.
Important upcoming dates include the allotment determination on Monday, January 19. Refunds will begin processing on Tuesday, January 20. On that same day, shares will be credited to the demat accounts of successful allottees.
The anticipated listing on both BSE and NSE is scheduled for Wednesday, January 21. The Indian stock market remained closed on Thursday, January 15 due to municipal corporation elections in Maharashtra.
Anchor Investor Participation
Amagi Media Labs secured significant anchor investment before the public offering. On January 12, the company raised ₹804.87 crore from 42 anchor investors. This occurred just one day before the IPO opened to the public.
On Monday, the company announced allocation of 2.22 crore equity shares to these anchor investors. They purchased shares at the highest price band level.
Among anchor investors, domestic mutual funds showed strong participation. Eleven mutual funds purchased 1.69 crore equity shares worth ₹613 crore. These include SBI Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life AMC, HDFC AMC, Motilal Oswal AMC, Franklin India, PGIM India, and Helios.
Insurance companies also participated actively. HDFC Life Insurance, Bharti Axa Life Insurance, and Edelweiss Life Insurance together purchased 14.95 lakh shares. Their total investment amounted to ₹53.98 crore.
Financial Performance and Growth
Amagi Media Labs demonstrates solid financial growth. The company reported operational revenue of ₹1,162 crore for FY25. This represents a compound annual growth rate of 31% from FY23 to FY25.
Growth drivers include acquisition of new customers and increased engagement from existing platform users. For the six months ending September 30, 2025, the company announced a profit of ₹6.4 crore. Total revenue for this period reached ₹704.8 crore.
Expert Reviews and Recommendations
Brokerage firms have provided varied perspectives on the offering. SMIFS highlights the company's integrated platform that handles content preparation, channel creation, distribution, and monetization. This integration creates substantial switching costs and fosters loyal customer relationships.
The brokerage notes Amagi's diversified revenue sources. Cloud Modernization, Streaming Unification, and Monetization & Marketplace contribute to revenue stability. Streaming Unification alone accounts for more than 50% of revenues.
SMIFS recommends subscription for risk-tolerant investors with a long-term perspective. They believe consistent execution and favorable industry trends could create significant value over time.
BP Equities analyzes the valuation at the higher price level of ₹361. The company trades at a P/S multiple of 0.3x relative to FY25 revenue. Given the scalable business model and industry growth potential, they consider this valuation justified. BP Equities recommends a "SUBSCRIBE" rating with medium to long-term perspective.
SBICAP Securities offers a more cautious view. They note the IPO appears on track for profitability by FY26 end based on first half FY26 results. However, they highlight consolidation in the global Media & Entertainment sector, particularly in North America. This consolidation may affect the company's pricing power.
At the highest price of ₹361, SBICAP calculates the IPO valuation at 6.7 times FY25 price-to-sales ratio after considering offering capital. They assign a NEUTRAL rating and plan to monitor performance for several quarters post-listing.
Anand Rathi observes that at the upper price spectrum, valuation reaches 6.7 times FY25 price-to-sales ratio. This results in post-issue market capitalization of ₹78,098 million. The company achieved profitability in first half FY26 and appears poised for full-year profitability in FY26.
The brokerage expresses optimism about continued R&D investments. These investments aim to enhance scalability, automation, performance, and user experience. Anand Rathi recommends "Subscribe – Long Term" while noting the IPO appears fully valued.
IPO Structure and Fund Utilization
The Amagi Media Labs IPO comprises two components. A fresh issue totals ₹816 crore, while an Offer For Sale involves 2.7 crore shares. Based on the maximum price band, the OFS is estimated at ₹972.6 crore. This creates an overall issue size of ₹1,788.6 crore.
The OFS includes shares from several stakeholders. PI Opportunities Fund I, PI Opportunities Fund II, Norwest Venture Partners X – Mauritius, Accel India VI (Mauritius) Ltd, Trudy Holdings, and individual shareholders will liquidate their positions.
Proceeds from the fresh issue amount to ₹550 crore. These funds will support multiple initiatives. Technology and cloud capabilities will receive enhancement. Growth through acquisitions will be facilitated. General corporate costs will also be addressed.
Fund allocation will occur in phases. ₹82 crore is designated for FY26, ₹359 crore for FY27, and ₹108 crore for FY28.
Transaction Management
Several financial institutions manage this transaction. Kotak Mahindra Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, IIFL Capital Services, and Avendus Capital serve as principal book-running managers. MUFG Intime India Pvt. Ltd. acts as the registrar for the transaction.
Disclaimer: The views and recommendations presented here come from individual analysts, experts, and broking companies. These do not represent official positions. Investors should consult certified experts before making investment decisions.
