Amagi Media Labs IPO Day 3: GMP signals 7% listing gain; should you apply?

Synopsis The Rs 1,789 crore Amagi Media Labs IPO entered its final day with marginally improved sentiment as the grey market premium inched up to around 7%. Despite the uptick, overall subscription remained muted at 13% by Day 2, reflecting cautious investor appetite amid volatile markets and valuation concerns around new-age technology companies. The Rs 1,789 crore Amagi Media Labs IPO entered its third and final day of bidding with a marginal improvement in investor sentiment. The grey market premium (GMP) has edged up to around 7% from about 6%, signalling slightly better—though still cautious—expectations of listing gains amid volatile markets and heightened valuation scrutiny for new-age technology companies. On Day 2, the issue continued to witness a subdued response, with overall subscription at just 13%. The IPO received bids for 35.11 lakh shares against 2.72 crore shares on offer. Amagi Media Labs IPO GMP today According to unofficial market sources, Amagi Media Labs’ IPO is quoting at a grey market premium of around 7%, or roughly Rs 27 over the issue price of Rs 361. The GMP has gradually risen from around 4% earlier, reflecting a modest improvement in sentiment. At current levels, the stock is expected to list near Rs 388, though expectations remain restrained due to choppy market conditions. Amagi Media Labs IPO subscription status Live Events By the close of Day 2, the IPO was subscribed 13% overall, underscoring muted investor interest. Retail Individual Investors (RIIs) showed relatively stronger participation, subscribing 49% of the 50.73 lakh shares reserved for them. Non-Institutional Investors (NIIs) subscribed just 8% of their 76.09 lakh shares, indicating limited appetite. Qualified Institutional Buyers (QIBs) remained the most cautious, bidding for only 3% of the 1.45 crore shares allocated to them. Overview of the IPO Amagi operates in the fast-growing connected TV (CTV) and programmatic advertising space, enabling advertisers to reach audiences across streaming platforms while helping publishers monetise digital inventory more effectively. The company has built a strong global presence, particularly in the US, where CTV advertising continues to gain traction as viewers shift away from traditional cable television. The IPO comprises a mix of a fresh issue and an offer-for-sale (OFS) by existing shareholders. Proceeds from the fresh issue will be used primarily to fund expansion initiatives, strengthen technology and cloud infrastructure, and meet general corporate requirements. The OFS will allow early investors to partially monetise their holdings. The Rs 1,788.62 crore issue includes a fresh issue of Rs 816 crore and an OFS worth Rs 972.62 crore. The IPO is open for subscription until January 16, 2026, with a price band of Rs 343–361 per share. Share allotment is expected to be finalised on January 19, 2026, with a tentative listing on the BSE and NSE on January 21, 2026. Kotak Mahindra Capital Co. Ltd. is the book-running lead manager, while MUFG Intime India Pvt. Ltd. is the registrar. Purpose of the IPO Of the total proceeds, Rs 550.06 crore will be deployed towards enhancing Amagi’s technology capabilities and cloud infrastructure. The remaining funds will be used for potential inorganic growth opportunities and general corporate purposes. Financial performance Amagi reported revenue of Rs 1,223 crore in FY25, marking nearly 30% growth from Rs 942 crore in FY24. Losses narrowed during the year, and the company turned profitable in the first half of FY26, posting a net profit of Rs 6.47 crore. The company has delivered consistent revenue growth in recent years, driven by rising global advertising spends on connected TV and wider adoption of programmatic advertising solutions. Operating performance has also improved, aided by scale-led efficiencies. Risk factors and challenges Like other adtech players, Amagi remains exposed to fluctuations in advertising budgets, which tend to tighten during global economic slowdowns. Additional risks include currency volatility, client concentration, and intense competition in international adtech markets. Should you subscribe? Brokerages tracking the IPO are advising investors to temper expectations and approach the offering with a medium- to long-term perspective rather than chasing near-term listing gains. According to Anand Rathi, Amagi’s positioning in the connected TV ecosystem, expanding global footprint, and improving financial profile make it a differentiated play within India’s tech IPO universe. However, valuation comfort and broader market conditions remain key near-term variables. “We recommend a subscribe-for-long-term-investors approach, given Amagi’s exposure to a structurally growing segment such as connected TV advertising, though listing gains may remain limited in the current market environment,” the brokerage said. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. 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