Amagi Media Labs IPO: Should you apply? Key details, risks and positives explained by Anil Singhvi

Amagi Media Labs’ initial public offering (IPO) opened for public subscription today, January 13, and will remain open till January 16. The Bengaluru-based cloud software-as-a-service company is looking to raise Rs 1,788.62 crore through the issue.

The IPO is a book-built issue comprising a fresh issue of equity shares worth Rs 816 crore and an offer for sale (OFS) of 2.69 crore shares aggregating to Rs 972.62 crore by existing shareholders. At the upper end of the price band, the issue values the company at over Rs 7,800 crore.

Amagi Media Labs IPO: Price Band and Lot Size

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The price band for the IPO has been fixed at Rs 343 to Rs 361 per share. The lot size is 41 shares. Retail investors need to invest a minimum of Rs 14,801 at the upper price band.

The allotment is expected to be finalised on January 19. The company is scheduled to list on the BSE and NSE on January 21.

What does the company do

Founded in 2008, Amagi Media Labs operates as a cloud-based SaaS company that enables media firms to stream and monetise digital video content. The company connects media companies with audiences across smart TVs, smartphones and digital platforms.

Its operations are organised into three segments: cloud modernisation, streaming unification, and monetisation and marketplace. The company works with over 45 per cent of the top-50 listed media and entertainment companies in India by revenue.

Amagi reported revenue from operations of Rs 1,162 crore in FY25. The company recorded a 31 per cent compound annual growth rate between FY23 and FY25. For the six-month period ended September 30, 2025, it reported a profit of Rs 6.4 crore on revenue of Rs 704.8 crore.

How will IPO proceeds be used?

Out of the fresh issue, Rs 550 crore will be used to strengthen technology and cloud infrastructure, fund inorganic growth through acquisitions and meet general corporate expenses. The deployment will be phased, with Rs 82 crore in FY26, Rs 359 crore in FY27 and Rs 108 crore in FY28.

What experts say

Market expert Anil Singhvi, Managing Editor at Zee Business, said the company has a unique business model and no listed peer in India. “Amaagi Media Liv is a unique company. There is no listed peer in India with a similar business model,” Singhvi said.

He said the company is a global player in cloud-based television and connected TV technology and provides SaaS solutions to media companies worldwide. He also highlighted the promoter profile and client base.

“The promoters are well-qualified, experienced and professional. They have successfully built businesses in the past,” Singhvi said.

He said the company has more than 400 global clients, over 350 distributors and a presence in more than 40 countries. He added that over 45 per cent of the world’s top 50 global media companies are clients of the firm.

Key positives

According to Singhvi, the company has delivered around 30 per cent annual revenue growth over the last three years. He said the company is debt-free and cash flows have turned positive from FY25.

“Cash flows have become positive from FY25. Earlier, they were negative for two years,” he said. He said Amagi has recently become profitable, reporting its first profits for the first half of FY26. He described the company as a high-growth, new-age SaaS business entering a scalable phase.

Key risks to consider

Singhvi pointed out that around 75 per cent of the company’s revenue comes from the United States. He said this reflects the structure of the global media industry, but remains a concentration risk.

“Nearly 75 per cent of revenue comes from the US, which is natural because most large media companies are based there,” he said. He also noted that the company has only recently turned profitable, after remaining loss-making till FY25. Short-term listing performance, he said, would depend on market conditions.

Singhvi advised risk-taking investors to consider the IPO from a long-term perspective, while also reminding them to be mindful of the market volatility associated with IPOs.