In a significant development for India's technology sector, the Securities and Exchange Board of India (SEBI) has granted approval to Amagi Corporation for its initial public offering (IPO). The cloud-based SaaS platform, which has achieved unicorn status, is planning to raise over ₹1,000 crore through this public offering.
The IPO Structure and Financial Details
The proposed IPO consists of a fresh issue of equity shares worth up to ₹500 crore along with an offer for sale (OFS) component of up to 2.34 crore equity shares. According to the draft red herring prospectus (DRHP) filed with SEBI, the OFS will include shares from existing investors and founders. Promoter B. Srinivasan will offer up to 1.26 crore shares, while other selling shareholders including Accel India, Nexus Ventures, and Premji Invest will participate in the offer for sale.
The company, which was valued at approximately $1.4 billion during its last funding round in 2022, is expected to see significant investor interest given its strong position in the media technology space. Amagi plans to utilize the net proceeds from the fresh issue for funding organic growth initiatives and general corporate purposes, strengthening its market position globally.
Amagi's Business Model and Market Position
Founded in 2008 by B. Srinivasan, Srividhya Srinivasan, and Srinivasan KA, Amagi has established itself as a leading provider of cloud-based SaaS technology solutions for broadcast and connected TV. The company's platform enables content owners to launch, distribute, and monetize live linear channels on various streaming platforms without requiring significant infrastructure investment.
Amagi's impressive client portfolio includes major global media companies such as NBCUniversal, CBS, and Warner Bros. Discovery. The company has demonstrated strong financial performance, reporting revenue from operations of ₹1,167 crore for the fiscal year ending March 2024, representing substantial growth from previous years. Their net profit for the same period stood at ₹41 crore, showcasing their path to profitability.
Market Implications and Future Prospects
This IPO approval marks a significant milestone for India's SaaS industry, which has been witnessing growing investor interest. Amagi's successful public offering could pave the way for other SaaS companies considering similar moves. The timing appears favorable given the renewed optimism in Indian capital markets and the specific interest in technology companies with global customer bases.
The company's decision to go public comes at a time when the Indian startup ecosystem is maturing, with several technology companies achieving the scale and governance standards required for public markets. Amagi's IPO will be closely watched as a barometer for investor appetite in profitable B2B SaaS companies with substantial international revenue.
Kotak Mahindra Capital Company, Morgan Stanley India, and Citigroup Global Markets India are among the investment banks managing the public issue. The listing is expected to occur on both the Bombay Stock Exchange and the National Stock Exchange once the company completes the final regulatory requirements and market conditions remain favorable.
