The initial public offering (IPO) of Amagi Media Labs Limited, a cloud-based software-as-a-service i.e. SaaS company, has received an excellent response from investors. This issue was subscribed 30.22 times on the last day of bidding on Friday. According to NSE data, bids were registered for 82,40,12,260 shares against 2,72,66,589 shares offered in the IPO. The non-institutional investors (NII) quota was subscribed 37.36 times, while the qualified institutional buyers (QIB) category was subscribed 33.77 times. At the same time, the share of retail investors received 9.31 times the applications. Earlier, the company had informed that it has raised about Rs 805 crore from anchor investors.
Price Band and Valuation
The price band of this IPO has been fixed at Rs 343 to Rs 361 per share. The valuation of the company at the upper price band is estimated at more than Rs 7,800 crore. According to market sources, the gray market premium (GMP) of Amagi Media Labs stood at ₹27 per share as of Friday.
IPO structure
This IPO of Bengaluru-based Amagi Media Labs has been offered in two parts:
Fresh issue of Rs 816 crore
Offer for sale (OFS) of 2.7 crore shares by existing shareholders, valuing it at Rs 972.6 crore at the upper price band
Thus, the total size of the IPO is Rs 1,788.6 crore.
use of funds
The company will use Rs 550 crore from the fresh issue to:
To strengthen technology and cloud infrastructure
To increase inorganic growth through acquisitions
to meet general corporate needs
These funds will be spent in a phased manner:
FY26: Rs 82 crore
FY27: Rs 359 crore
FY28: Rs 108 crore
get to know the company
Founded in 2008, Amagi is backed by leading investors like Accel, Avtaar Ventures, Norwest Venture Partners and Premji Invest. The company works with more than 45 percent of India’s top-50 listed media and entertainment companies. Amagi helps media companies deliver and monetize video content on smart TVs, smartphones and other digital platforms through cloud-native technology. The company’s business is spread across three major segments – Cloud Modernization, Streaming Unification and Monetization and Marketplace.
book running lead managers
The book running lead managers to the issue include Kotak Mahindra Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, IIFL Capital Services and Avendus Capital.
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