Late institutional rush drives Amagi Media Labs IPO to 26× subscription

After a sluggish start marked by weak institutional participation, Amagi Media Labs’ ₹1,788.62-crore initial public offering (IPO) witnessed a dramatic turnaround on the final day of bidding, drawing strong demand across investor categories.

Despite commanding a grey market premium (GMP) of ₹27 in the unlisted market, the IPO of the Bengaluru-headquartered ad-tech and SaaS platform had struggled to attract bids during the first two days of subscription. The issue was subscribed just 0.13 times over Days 1 and 2, sparking concerns over institutional appetite, even as the company counts marquee investors such as Premji Invest (through its PI Opportunities Fund), Accel, Norwest Venture Partners, Avataar Ventures and General Atlantic among its backers.

The issue, which opened for subscription on January 13 at a price band of ₹343-361 per share, was subscribed only 0.07 times on Day 1 and marginally improved to 0.13 times on Day 2 (January 14), largely driven by retail participation. The bidding period was extended to four days after stock exchanges remained shut on January 15 due to local municipal elections in Maharashtra.

However, the IPO garnered strong demand on the final day. The late surge in demand gathered further momentum in the final hours of bidding. As of 3:40 pm on January 16, the Amagi Media Labs IPO was subscribed 26.25 times overall. The portion reserved for qualified institutional buyers (QIBs) was booked 27.92 times, with bids for over 40.72 crore shares against an allocation of 1.45 crore shares, reflecting strong participation from foreign institutional investors, domestic financial institutions, mutual funds and other institutional investors.

The non-institutional investor (NII) segment continued to lead demand, with its quota subscribed 35.72 times. Within this, bids worth more than ₹10 lakh were subscribed 41.94 times, while the ₹2–10 lakh category was booked 23.27 times. Retail investor interest also strengthened, with the retail portion subscribed 7.24 times.

In the first two days of bidding, the retail category subscribed 0.52 times, NIIs at 0.08 times and the QIB portion at just 0.03 times. The company had reserved 75% of the issue for QIBs, while NIIs and retail investors were allocated 15% and 10%, respectively.

The IPO allotment is expected to be finalised on January 20, 2026, with shares of Amagi Media Labs likely to debut on the BSE and NSE on January 22.

Meanwhile, Amagi shares were commanding a grey market premium (GMP) of ₹27 in the unlisted market, implying a listing price of around ₹388 per share, about 7.48% higher than the issue price, according to data from InvestorGain.com, a financial education platform.

Amagi Media Labs IPO comprises a fresh issue of 2.26 crore equity shares worth ₹816 crore and an offer for sale (OFS) of 2.69 crore shares aggregating ₹972.62 crore by existing shareholders and promoters. The price band has been fixed at ₹343–₹361 per share, with a lot size of 41 shares. At the upper end of the band, the minimum investment for retail investors works out to ₹14,801.

According to the draft red herring prospectus (DRHP) filed with Sebi, the company plans to utilise the IPO proceeds primarily for technology investments and cloud infrastructure expenses, funding inorganic growth through unidentified acquisitions, and general corporate purposes. Of the total proceeds, ₹550.06 crore has been earmarked for technology and cloud infrastructure, while the remaining amount will be used for inorganic growth opportunities and general corporate needs.

Ahead of the public issue, the Bengaluru-headquartered ad-tech and SaaS platform—focused on connected TV and digital video advertising—raised ₹805 crore from anchor investors by allotting 2.22 crore equity shares at ₹361 apiece, the upper end of the price band.