Will Amagi Media Labs’ ₹1,789-crore IPO sail through on the final day?

Despite commanding a grey market premium (GMP) of ₹27 in the unlisted market, Amagi Media Labs’ ₹1,788.62-crore initial public offering (IPO) has struggled to attract bids on the exchanges, particularly from institutional investors. This is despite the company being backed by marquee investors such as Premji Invest (through its PI Opportunities Fund), Accel, Norwest Venture Partners, Avataar Ventures and General Atlantic.

As the issue heads into the final day of subscription, it was booked just 0.13 times over the first two days, raising questions over whether institutional investors will step in at the last moment to salvage the offering.

The IPO of the Bengaluru-headquartered ad-tech and SaaS platform, which opened for subscription on January 13, was subscribed only 0.07 times on Day 1. This inched up to 0.13 times on Day 2 (January 14), largely driven by retail participation. The bidding period has been extended to four days due to market holidays on January 15 amid local municipal elections in Maharashtra.

Data from exchanges showed that the retail category was subscribed 0.52 times, while non-institutional investors (NIIs) portion received 0.08 times bidding. The quota reserved for qualified institutional investors (QIB) was booked 0.03 times. The company has reserved 75% of the issue for QIBs, while the quota for NIIs and retail investors were fixed at 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 the NSE on January 22. Ahead of the listing, the stock was commanding a 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.

IPO received mixed ratings

The Amagi Media IPO has received mixed reviews from analysts, but mostly recommended "subscribe for the long term," with brokerages like Anand Rathi, BP Equities, Arihant Capital, DR Choksey, Nirmal Bang recommending it for growth, citing strong SaaS adoption in media, while SBICAP Securities suggest "Neutral" or caution due to high valuation and near-term profitability concerns, advising investors to watch for sustained execution in the structurally growing Connected TV/FAST market.  

The 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—focussed 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.

The anchor book saw strong participation from domestic institutional investors (DIIs), with the top three mutual fund houses—SBI Mutual Fund, ICICI Prudential Mutual Fund and HDFC Mutual Fund—together accounting for nearly 40% of the total anchor allocation.

Company turned profitable in H1FY26

While the company reported losses for the last three full fiscal years (FY23, FY24, and FY25), it achieved profitability in H1FY26, aided by operating leverage and a growing customer base in the cloud-based media technology space.

For the six months ended September 30, 2025, the company reported total income of ₹733.93 crore and profit after tax of ₹6.47 crore, compared with a loss of ₹68.71 crore in FY25. The company reported higher losses of ₹245 crore in FY24 and ₹321.27 crore in FY23.

At the operating level, EBITDA improved to ₹58.23 crore in the first half of FY26, compared with ₹23.49 crore in FY25, while the company had reported negative EBITDA in FY24 and FY23.

The company’s net worth stood at ₹859.34 crore as of September 30, 2025, up sharply from ₹509.45 crore at the end of FY25, supported by improving operating cash flows and balance-sheet strengthening.

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