Amagi Media Labs IPO Opens On January 13, GMP Suggests Strong Listing Prospects - Should You Apply?

Amagi Media Labs IPO GMP, Expected Listing Price

According to websites that track grey market activities, Amagi Media Labs IPO shares are trading at a premium (GMP) of Rs 36 over the issue price. Given the current GMP and the upper end of the issue price, Rs 361, Amagi Media Labs IPO shares are expected to list at Rs 397 per share, representing a potential listing gain of nearly 10 per cent.

Amagi Media Labs IPO Objectives

According to the red herring prospectus (RHP), Amagi plans to use the proceeds from the fresh issue primarily to invest in technology and cloud infrastructure. Part of the funds will also be allocated towards inorganic growth opportunities, including potential acquisitions, as well as for general corporate purposes.

The shareholders participating in the offer for sale include 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 trimming small portions of their holdings as part of the issue.

Amagi Media Labs: What the Company Does?

Amagi Media Labs is a Bengaluru-based media technology company that helps broadcasters and content owners make money from television and streaming. Founded in 2008, the company builds cloud-based tools that allow media companies to launch, manage and monetise channels across both traditional TV and connected TV platforms.

According to the company’s red herring prospectus (RHP), the company is best known for its work in Free Ad-supported Streaming TV (FAST), enabling live linear channels on platforms such as Pluto TV, Samsung TV Plus and The Roku Channel. Its software handles key functions such as cloud playout, content scheduling, ad insertion and audience analytics, helping customers cut infrastructure costs while scaling faster.

The company has a significant presence in the US, Europe and Asia. It serves more than 700 content partners and supports over 2,000 channel deployments across 100-plus countries.

Amagi Media Labs IPO: Financial Performance

Amagi’s latest financials show that the company has scaled rapidly and has also improved its operating profile, but it is still a loss-making company.

The media tech firm posted a revenue of Rs 1,162.64 crore in FY25, up from Rs 879.16 crore in FY24 and Rs 680.56 crore in FY23, representing a CAGR growth of 30.70 per cent over the three years. According to the RHP, this growth was led by strong new customer additions and higher spending by existing clients on its platform.

In FY25, Amagi reported a net revenue retention rate of 126.9 per cent, indicating that existing customers not only stayed on but significantly increased their usage. The company also managed to expand its customer base to 463 in FY25 from 283 two years earlier. The number of clients which generated more than $1 million in annual revenue rose to 28.

The company’s gross margins increased to 69.30 per cent in FY25 from 64.70 per cent in FY23. Adjusted Ebitda turned positive at Rs 23.49 crore in FY25, as against losses in the previous two years, which lifted the Ebitda margin to 2 per cent from negative levels.

The company continued to report net losses, but these narrowed sharply to Rs 68.70 crore from over Rs 320 crore in FY23. Cash flows from operations also swung into the black during the year.

Monetised ad impressions climbed to 26.10 billion, and average revenue per employee rose to Rs 1.31 crore.

As of September 30, 2025, the company’s net worth stood at Rs 859.34 crore. As of May 31, 2025, the company and its subsidiaries have no outstanding borrowings.

Amagi Media Labs: Legal Disputes

Amagi Media Labs is largely free of legal trouble, with one exception involving its directors. An ex-employee, Chandrashekhar, has filed a case under the Industrial Disputes Act, 1947, claiming 2,000 ESOPs under a 2015 consultant agreement. The petition names directors Baskar Subramanian and Arunachalam Srinivasan Karapattu, among others.

The directors had raised concerns over potential bias, and in June 2019, the High Court of Karnataka transferred the matter to the Second Additional Labour Court in Bengaluru. The case is still pending. Otherwise, the company, its promoters, directors, and subsidiaries have no material civil, criminal, or regulatory proceedings.

Criminal Proceedings against Key Management Personnel

As mentioned in the RHP, there is one criminal case involving senior management. EMIT Corporation filed a complaint against Himatsingka Seide Ltd, its directors and senior executives, including group CFO Shyam Powar and former company secretary Sridhar Muthukrishnan, alleging cheating and criminal breach of trust related to a power infrastructure contract. After EMIT withdrew an earlier private complaint filed in February 2024, a subsequent police complaint led to the registration of an FIR in August 2024. The accused challenged the proceedings before the Karnataka High Court, arguing that the dispute stems from a commercial contract. In October 2024, the court stayed the FIR, and the matter remains pending.

Amagi Media Labs: Competitors

The cloud media and entertainment tech market is highly fragmented and still evolving, as there is no other single provider which offers a fully integrated solution across the content production, preparation, distribution and monetisation value chain, as Amagi claims in its RHP. The company, as it claims, is the only software as a service (SaaS) firm among a list of 17 comparable peers.

In the cloud modernisation division, the company competes with legacy broadcast technology providers such as Grass Valley and Evertz. In streaming unification, companies like Frequency and Wurl offer FAST channel creation and syndication tools. In monetisation and advertising, companies such as YoSpace and Transmit.Live provides fragmented ad-tech solutions.

Key Risks Amagi Media Labs Is Exposed To

• The biggest risk is profitability. Despite strong growth and improving margins, Amagi is still a net loss-making company. If revenue growth slows or operating costs rise, the path to profitability would then be a long road to cover.

• Regulation is another key concern. Amagi’s business runs on data, advertising and cross-border operations. Any tightening of data protection rules, ad regulations or competition laws can directly raise costs or restrict expansion, particularly as the company looks to grow through acquisitions.

• A chunk of IPO proceeds is set aside for inorganic growth without identified targets. If management overpays, picks the wrong assets or struggles with integration, capital will be wasted, and returns will suffer.

• The company operates in a highly competitive industry. The FAST and connected TV space is crowded, with global tech platforms and deep-pocketed rivals. Pricing pressure, higher customer acquisition costs or loss of differentiation can hit growth and margins quickly.

• Valuation is also a concern, since Amagi is coming to market as a high-growth, premium-valued company. The company is currently in its high-growth phase, as it reported a 30.70 per cent CAGR growth in revenues from FY23 to FY25. However, at the upper end of the price band, Amagi is seeking a valuation of Rs 7,809.84 crore. This indicates a price-to-sales multiple of 6.70. Any earnings miss, margin slip or negative regulatory headline could trigger sharp stock corrections.

Key Strengths And Opportunities of Amagi Media Labs

• Amagi’s key differentiator from its peers is that it is a fully integrated “glass-to-glass” platform that covers everything from live production and content preparation to distribution and monetisation.

• The company leverages artificial intelligence (AI) across its platform to automate scheduling, optimise ad revenue, and drive audience growth, which allows customers to cut costs and improve their efficiency.

• Amagi’s platform brings together content creators, distributors, and advertisers in a single ecosystem, creating a cycle where more content attracts more viewers, which in turn drives higher ad revenue for everyone involved.

• Amagi counts some of the world’s biggest events among its clients, streaming everything from the Paris Olympics and Premier League matches to US Presidential debates. Its technology has won international accolades, including a Technology & Engineering Emmy, NAB Product of the Year awards, and the IBC Innovation Award.