Amagi Media Labs IPO Faces Slow Initial Response
The Amagi Media Labs initial public offering has experienced a lukewarm reception during its first two days of bidding. The IPO opened for subscription on Tuesday, January 16, and will close on Friday, January 19. Indian stock markets remained closed on Thursday, January 18, due to municipal corporation elections in Maharashtra.
Subscription Figures Show Limited Interest
On the second day of bidding, the Amagi Media Labs IPO achieved only 13% subscription according to BSE data. Retail investors demonstrated moderate interest with 49% subscription of their reserved portion. Non-institutional investors showed minimal participation at 8%, while qualified institutional buyers registered just 3% subscription.
The company has set the IPO price band between ₹343 and ₹361 per share. The allotment basis will likely be finalized on Monday, January 22. Refunds will follow on Tuesday, January 23, with shares credited to successful applicants' demat accounts the same day. Trading is expected to commence on BSE and NSE on Wednesday, January 24.
Grey Market Premium Indicates Potential Gains
The current grey market premium for Amagi Media Labs stands at ₹29. Based on the upper price band of ₹361, this suggests an estimated listing price of ₹390 per share. This represents an 8.03% premium over the IPO price.
However, grey market activity over the past nine sessions reveals a declining trend. The premium has dropped from ₹43 to its current level. Market observers note the premium has fluctuated between ₹0 and ₹43 during this period. The grey market premium typically reflects investor willingness to pay above the official issue price.
IPO Structure and Fund Utilization
The Amagi Media Labs IPO comprises a fresh issue worth ₹816 crore combined with an offer for sale of 2.7 crore shares. At the upper price band, the OFS values at ₹972.6 crore, bringing the total issue size to ₹1,788.6 crore.
Several prominent shareholders are participating in the offer for sale. These include PI Opportunities Fund I, PI Opportunities Fund II, Norwest Venture Partners X – Mauritius, Accel India VI (Mauritius) Ltd, Trudy Holdings, and various individual sellers.
The company plans to utilize ₹550 crore from the fresh issue for specific purposes. These funds will enhance technology and cloud infrastructure, support acquisitions for inorganic growth, and cover general corporate expenses.
The allocation will occur in phases across multiple financial years. The company has earmarked ₹82 crore for FY26, ₹359 crore for FY27, and ₹108 crore for FY28.
Key Financial Institutions Involved
Multiple financial institutions are managing the public offering. Kotak Mahindra Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, IIFL Capital Services, and Avendus Capital serve as book-running lead managers. MUFG Intime India Pvt. Ltd. acts as the registrar for the issue.
Investment experts recommend careful evaluation before applying. Prospective investors should consult certified financial advisors before making investment decisions regarding this IPO.
