Amagi Media Labs IPO: GMP rises ahead of last bidding day. Should you apply?

The initial response to the Amagi Media Labs IPO has been tepid for the first two days of bidding. Amagi Media Labs IPO, which started on Tuesday, January, will wrap up bidding on Friday, January 19. The Indian stock markets are not trading today, Thursday, January 15, due to the municipal corporation elections happening in Maharashtra.

On the second day of bidding, Amagi Media Labs IPO subscription status was 13%, according to BSE data. The retail segment attracted a subscription of 49%, while the Non-Institutional Investors (NII) portion was covered at 8%, and bids for the Qualified Institutional Buyers (QIBs) segment reached 3%.

Amagi Media Labs IPO price band has been set in the range of ₹343-361 per share.

The basis for allotting shares in the Amagi Media Labs IPO is expected to be finalised on Monday, January 19. Refunds will be processed by the company on Tuesday, January 20, and on the same day, the shares will be credited to the demat accounts of the allottees following the refunds. The share price of Amagi Media Labs is anticipated to debut on the BSE and NSE on Wednesday, January 21.

Amagi Media Labs IPO GMP today

Amagi Media Labs IPO GMP today is ₹29. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Amagi Media Lab is indicated at ₹390 apiece, which is 8.03% higher than the IPO price of ₹361.

Considering the grey market activities from the last nine sessions, the present GMP ( ₹43) indicates a downward trend. Experts say the lowest GMP recorded is ₹0.00, with the highest reaching ₹43.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Amagi Media Labs IPO details

Amagi Media Labs IPO features a new issue of shares totaling ₹816 crore alongside an Offer For Sale (OFS) of 2.7 crore shares, which is priced at ₹972.6 crore based on the upper price band from current shareholders. This results in a total issue size of ₹1,788.6 crore.

The OFS includes shareholders such as PI Opportunities Fund I, PI Opportunities Fund II, Norwest Venture Partners X – Mauritius, Accel India VI (Mauritius) Ltd, Trudy Holdings, and various individual sellers who are offloading their shares.

The proceeds from the new issue, amounting to ₹550 crore, will be used to upgrade Amagi’s technology and cloud infrastructure, facilitate inorganic growth through acquisitions, and address general corporate expenses.

The allocation of these funds will be executed in phases, with ₹82 crore allocated for FY26, ₹359 crore for FY27, and ₹108 crore for FY28.

The principal book-running managers for the offering consist of Kotak Mahindra Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, IIFL Capital Services, and Avendus Capital, while MUFG Intime India Pvt. Ltd. acts as the registrar for the offering.

Amagi Media Labs IPO Review

BP Equities mentioned that at the upper price point of Rs. 361, Amagi Media Labs Ltd. has a valuation based on a P/S multiple of 0.3x relative to FY25 sales. Considering the company’s scalable business model and the potential for industry growth, we think this valuation is warranted. Therefore, the brokerage advises a “SUBSCRIBE” rating for this offering with a medium to long-term investment outlook.

SBICAP Securities highlighted that the IPO of Amagi Media Labs appears on track to become profitable by the end of the fiscal year FY26, according to the financial results from the first half of FY26. However, the global Media & Entertainment sector is currently undergoing significant consolidation, especially in Amagi Media Labs' primary market of North America, which could impact the company’s pricing power.

The brokerage mentioned that at the maximum price of ₹361, the IPO is assessed at 6.7 times the FY25 price-to-sales ratio after accounting for the capital from the issue. They have assigned a NEUTRAL rating to the offering and plan to observe the company's performance for several quarters after its listing.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.