Amagi Media Labs IPO GMP Crashes Amid Weak Demand: Check Day 2 Subscription Status

The initial public offering (IPO) of the cloud-based software-as-a-service (SaaS) media tech firm, Amagi Media Labs, continued to see few takers on the second day of bidding, January 14, 2026, reflecting muted investor appetite after a subdued response on the opening day. The issue, which opened for subscription on January 13, is available for bidding till January 16. Amid the weak response, the grey market premium (GMP) for Amagi Media Labs’ unlisted shares declined further, indicating low expectations of listing gains.

Established in 2008, the Bengaluru-based Amagi Media Labs, is a media technology company that helps broadcasters and content owners to monetise television and streaming platforms. The company provides cloud-based tools that enable media companies to launch, manage, and scale channels across traditional TV and connected TV platforms.

According to the company’s red herring prospectus (RHP), Amagi has built a strong presence in Free Ad-supported Streaming TV (FAST), supporting live linear channels on platforms, including Pluto TV, Samsung TV Plus, and The Roku Channel.

Amagi Media Labs IPO Subscription Status: Day 2

Amagi Media Labs’ IPO has been subscribed only 10 per cent so far, as of 1:15 PM on the second day.

Retail investors led the subscription with their portion being booked 42 per cent, followed by non-institutional investors (NIIs), which saw only 7 per cent subscription. The qualified institutional buyer (QIB) category has seen nil subscription so far. There are no employee or shareholder reservation in the IPO.

Amagi Media Labs IPO GMP Today

According to websites that track grey market activities, Amagi Media Labs IPO’s GMP stood at Rs 24 per share over the issue price, falling from the Rs 37 quoted prior to the opening of the subscription window. Given the current GMP and the upper end of the issue price, Rs 361, Amagi Media Labs IPO’s shares are expected to list at Rs 385 per share. This represents a modest potential listing gain of only 6.65 per cent.

Grey market trading is unofficial, unregulated, and often driven by speculation. As such, GMP should not be seen as a reliable indicator of how an IPO will perform on its listing day.

Amagi Media Labs IPO Details

Issue Size: The Amagi Media Labs IPO is a book-built issue of Rs 1,788.62 crore, which comprises a fresh issue of 22.60 million shares worth Rs 816 crore and an offer for sale (OFS) of 26.94 million shares aggregating to Rs 972.62 crore.

Price Band, Lot Size, Minimum Investment: The company has fixed the price band at Rs 343-361 per share. Investors can apply in lots of 41 shares, translating into a minimum retail investment of Rs 14,801 at the upper end of the band.

Allotment, Listing Dates: The allotment is likely to be finalised on January 19, and shares are set to list on the BSE and NSE on January 21.

BRLMs, Registrar: Kotak Mahindra Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, IIFL Capital Services and Avendus Capital are the book-running lead managers to the issue. MUFG Intime India is acting as the registrar.

Amagi Media Labs IPO Objectives

Amagi Media Labs plans to use the Rs 816 crore net proceeds for strengthening its technology capabilities and expanding its cloud infrastructure, according to the company’s RHP. The company will also allocate a portion of the funds for inorganic growth initiatives, including potential acquisitions, and for general corporate purposes.

The IPO also includes an OFS component worth Rs 972.62 crore, as existing shareholders look to partially divest their holdings. Participants in the OFS component include investment funds, such as PI Opportunities Fund I and II, Norwest Venture Partners, Accel entities, AVP I Fund, and Trudy Holdings. Promoters Prem Gupta, Rahul Garg, Rajesh Ramaiah, and Rajat Garg are also selling small portions of their stakes as part of the offering.

Post-listing, promoter holding will reduce to 14.14 per cent from 15.76 per cent.

Amagi Media Labs: Financial Performance

For the half-year ended September 30, 2025 (H1FY26), Amagi Media Labs reported a total income of Rs 733.93 crore, earnings before interest tax depreciation and amortisation (Ebitda) of Rs 58.23 crore and a profit after tax (PAT) of Rs 6.47 crore.

For the full year FY25, the media-tech company posted total income of Rs 1,223.31 crore, up from Rs 942.24 crore in FY24 and Rs 724.72 crore in FY23. Despite the revenue growth, Amagi remained in the red, reporting a net loss of Rs 68.71 crore in FY25, narrower than losses of Rs 245 crore in FY24 and Rs 321.27 crore in FY23.

The company turned Ebitda positive in FY25 at Rs 23.49 crore, a significant recovery from negative Ebitda of Rs 155.53 crore in FY24 and Rs 140.34 crore in FY23.

At the end of H1FY26, Amagi Media Labs reported a net worth of Rs 859.34 crore and remained net debt-free.

Amagi Media Labs IPO: RoNW, Profit Margins

Amagi Media Labs has shown a sharp turnaround ahead of its IPO. As of September 30, 2025, the company reported a return on net worth (RoNW) of 0.75 per cent, recovering from a negative figure of 13.49 per cent in March 2025. PAT margin also turned positive at 0.88 per cent, as against a negative 5.62 per cent six months earlier, and its Ebitda margin improved to 8.26 per cent from 2.02 per cent during the same period.

Amagi Media Labs Valuation

The company’s market capitalisation stands at Rs 7,809.84 crore, prior to the IPO. The company’s price-to-book (P-B) ratio eased to 8.61, as of September 30 from 14.10, as on March 31.

Post-IPO, earnings per share (EPS) are expected to turn positive at Rs 0.60, assuming it lists at the upper end of the price band. Its pre-IPO loss stands at Rs 3.55 per share. This will result in a post-IPO price-to-earnings (P-E) ratio of 603.54 as against a negative P-E of -101.78 earlier.