Amagi Media Labs IPO kicks-off for bidding today: Should you subscribe to it?

The initial public offering (IPO) of Amagi Media Labs opens for bidding on Tuesday, January 13. The company is selling its shares in the range of Rs 343-361 apeice. Investors can apply for a minimum of 41 equity shares and its multiples thereafter. The issue will close for bidding on Friday, January 16, considering the market holiday on Thursday, January 15.

Amagi Media Labs is looking to raise a total of Rs 1,789 crore via IPO, which includes a fresh share sale of Rs 618 crore and an offer-for-sale (OFS) of 2,69,42,343 equity shares worth Rs 973 crore. The net proceeds shall be utilized towards investment in technology and cloud infrastructure, inorganic growth through unidentified acquisitions and general corporate purposes.

Founded in 2008, Bengaluru-based Amagi Media Labs is engaged in cloud-based broadcast and connected TV technology. Amagi provides end-to-end solutions for content creation, distribution, and monetisation across traditional TV and streaming platforms. Its suite of products includes cloud playout, content scheduling, ad insertion, and data analytics tools.

Amagi Media Labs raised Rs 804.87 crore from 42 anchor investors as it allocated 2.22 crore equity shares at Rs 361 apiece. Its anchor book included names like Susquehanna International Group (SIG), Bharti AXA, Isometry Capital, Société Générale, Goldman Sachs, Creaegis, Edelweiss Tokio Life Insurance, New Vernon Capital, Helios and a number of domestic mutual funds.

For the period ended on September 30, 2025, Amagi Media Labs reported a net profit at Rs 6.47 crore with a revenue of Rs 733.93 crore. The company had incurred a net loss of Rs 68.71 crore with a revenue of Rs 1,223.31 crore for the financial year 2024-25. At the current valuations, Amagi Media Labs is commanding a total market capitalization of more than Rs 7,800 crore.

Amagi Media has reserved 75 per cent of the issue for qualified institutional bidders (QIBs), while non institutional investors will have 15 per cent of the allocation. Retail investors have only a 10 per cent reservation in this IPO. Amagi Media Labs has seen a sharp correction in its grey market premium which has nearly halved from Rs 37 to Rs 20 levels, hinting at 5-6 per cent upside.

Kotak Mahindra Capital Company, Citigroup Global Markets India, Goldman Sachs (India) Securities, IIFL Capital Services and Avendus Capital are the book running lead manager and MUFG Intime India is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on Wednesday, January 21. Here's what a host of brokerages on IPO of Amagi Media Labs:
 

Arihant Capital Market

Rating: Subscribe

Amagi is positioned to benefit from the continued shift of audiences and advertisers toward connected TV and FAST platforms globally. Its end-to-end, cloud-native platform and AI-driven capabilities are expected to support deeper customer penetration, higher monetization, and sustained revenue growth, said Arihant Capital Markets.

"Strong customer retention, expanding global adoption, and ongoing investments in technology and data analytics should enable the company to scale efficiently while strengthening its role as a long-term technology partner for media companies. We are recommending a 'subscribe for listing gains' rating for this issue," it added.
 

SBI Securities

Rating: Neutral

Amagi Media Labs appears on the verge of turning profitable for the full year FY26 based on the 1HFY26 financials. However, the underlying global media & entertainment industry is undergoing consolidation especially in its primary market of North America which could potentially impact pricing power for it, said SBI Securities. "We assign a 'neutral' rating and would like to track the performance post listing."
 

Swastika Investmart

Rating: Avoid

Amagi Media Labs shows strong revenue growth, but profitability is still weak with negative PAT and ROE. Ebitda margin is very low, indicating the business is still in an early or transition phase, said Swastika Investmart in its IPO note.

"Even with the valuation haircut, the P/E ratio based on FY26 annualized earnings is extremely high. The IPO is mainly for growth and technology investment, not immediate earnings visibility. Given the risk–reward, it’s better to avoid this IPO for now, long-term investors should wait for consistent profits," it said.
 

Anand Rathi Share & Stock Brokers

Rating: Subscribe for long-term

Amagi Media Labs offer end-to-end camera-to-screen video technology solutions across the entire value chain- from live content creation and processing to distribution and monetization. Operating at the intersection of content creators, distributors, and advertisers, they enable a three-sided marketplace through integrated, cloud-native solutions, while embedding AI and ML, said Anand Rathi.

The issue is valued at 6.7 times FY25 P/S. It turned profitable in H1 FY26 and is well positioned to deliver full-year profitability in FY26. Continued investments in R&D to enhance scalability, automation, performance, and user experience further reinforce its positioning as the 'industry cloud' for video in the media and entertainment space," it said with a 'subscribe for long-term' rating.
 

Lakshmishree Investments & Securities

Rating: Subscribe

Amagi Media Labs derives its strengths from a comprehensive cloud-native platform that addresses the full media value chain, from content preparation to distribution and monetisation. It operates a three-sided marketplace connecting content providers, distributors, and advertisers, resulting in strong network effects that enhance platform scalability, said Lakshmishree.

Its proprietary technology incorporates predictive and generative artificial intelligence for content scheduling, ad monetisation, and data analytics. Continuous investments in research and development have led to the creation of intellectual property assets, including granted patents. It has established long-term relationships with leading global media and entertainment companies," it said with a 'subscribe' rating.
 

BP Equities

Rating: Subscribe

Amagi has shown clear operating leverage, with operating expenses declining to 67.3 per cent in FY25, and further improving to 61.3 per cent in H1FY26. Amagi Media Labs is valued at a P/S multiple of 0.3 times, said BP Equities. "Given its scalable business model and industry growth potential, we believe the valuation is justified," it said with a 'subscribe' rating for a long-term.
 

SMIFS

Rating: Subscribe

Its diversification mitigates concentration risk while enabling meaningful operating leverage as scale increases, positioning the company for sustained revenue compounding and margin expansion over the medium to long term, said SMIFS. "We recommend risk-taking investors to subscribe to the issue with a long-term investment horizon, as sustained execution and industry tailwinds could translate into multifold value creation over time." it said.
 

Sushil Finance

Rating: Subscribe

Amagi is the only SaaS provider offering end-to-end solutions across live production, content preparation, distribution, and monetization in the broadcasting and streaming ecosystem, said Sushil Finance. "Amagi is still transitioning to consistent profitability. Looking at all the factors, risks, opportunities and valuation, aggressive investors may invest with long term it said.