Amagi Media Labs Share Price: IPO lists 12% lower on BSE and NSE — Hold or sell? Anil Singhvi views

Amagi Media Labs Ltd, a cloud-based software-as-a-service (SaaS) company, made a weak stock market debut on Monday after its initial public offering received a strong investor response.

The company’s shares were listed at Rs 317 on the BSE, down 12.19 per cent from the IPO price of Rs 361. On the NSE, the stock opened at Rs 318, a decline of 11.91 per cent from the issue price.

Amagi Media Labs IPO Subscription Status

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The IPO of Amagi Media Labs was subscribed 30.22 times on the final day of bidding on Friday, according to data available with the NSE. The issue received bids for 82,40,12,260 shares against 2,72,66,589 shares on offer.

The portion reserved for non-institutional investors was subscribed 37.36 times. The category for qualified institutional buyers received 33.77 times the subscription. The retail individual investors’ quota was subscribed 9.31 times.

Amagi Media Labs Share Price: Anil Singhvi Views

Ahead of the listing, market expert Anil Singhvi said the issue had received a very good response. He had advised high-risk-taking investors to apply to the issue for the long term.

He had also said that the stock was expected to list near the issue price of Rs 361. For low-risk-taking investors, he had suggested maintaining a suitable stop-loss below Rs 350.

Amagi Media Labs IPO Anchor Investment

Amagi Media Labs on Monday said it had raised around Rs 805 crore from anchor investors ahead of the public issue. The price band for the IPO was fixed at Rs 343 to Rs 361 per share, valuing the company at over Rs 7,800 crore at the upper end of the band.

Amagi Media Labs IPO Details

The Bengaluru-based company’s IPO comprised a fresh issue of shares worth Rs 816 crore and an offer-for-sale of 2.7 crore shares by existing shareholders. The offer-for-sale was valued at Rs 972.6 crore at the upper end of the price band. This took the total issue size to Rs 1,788.6 crore.

The company said that proceeds from the fresh issue would be used to strengthen its technology and cloud infrastructure, support inorganic growth through acquisitions, and meet general corporate expenses. Out of the fresh issue proceeds, Rs 550 crore has been earmarked for these purposes.

The deployment of funds will take place in phases over the next three financial years. The company plans to utilise Rs 82 crore in FY26, Rs 359 crore in FY27, and Rs 108 crore in FY28.

Amagi Media Labs Company Profile

Founded in 2008, Amagi Media Labs provides cloud-based solutions that enable media companies to stream and monetise digital video content. The company works with media firms to connect them with audiences using cloud-native technology.

Its solutions allow content delivery and monetisation across smart televisions, smartphones, and other digital platforms.

The company’s operations are organised into three core segments. These include cloud modernisation, streaming unification, and monetisation and marketplace services.

Amagi said it works with over 45 per cent of the top 50 listed media and entertainment companies in India by revenue. The company is backed by several investors, including Accel, Avataar Ventures, Norwest Venture Partners, and Premji Invest.

The book-running lead managers to the issue were Kotak Mahindra Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, IIFL Capital Services, and Avendus Capital.