Amagi Media Labs, the Bengaluru-based cloud TV software provider, began trading below its offer price in a closely watched India listing that puts investor appetite for B2B media-tech to the test. Shares opened at ₹318, a 12% discount to the ₹361 issue price, then pared losses before hovering near ₹348.85, according to National Stock Exchange data. The move values the company at roughly ₹75.44 billion (about $826 million), a reset from its last private round valuation of $1.4 billion in late 2022.
Early Trading and IPO Mechanics Behind Amagi Listing
The IPO raised ₹17.89 billion (approximately $196 million), combining a fresh issue of ₹8.16 billion with an offer-for-sale of about 26.9 million shares by existing investors. The company scaled back from earlier plans that contemplated selling roughly 34.2 million shares, a decision that tightened the float but did not prevent a listing-day discount. Despite the weak open, the book reportedly drew heavy demand, with orders topping 30x the shares on offer, per exchange tallies.
Day-one trading suggests public investors are recalibrating expectations for growth, profitability, and currency exposure in an enterprise software name that earns the vast majority of its revenue abroad. The initial dip also reflects a broader pattern seen in Indian tech listings where deal quality has been high but pricing discipline has tightened as private and public market multiples converge.
Export-first revenue mix skews to U.S. and Europe
Amagi operates an export-first model that remains unusual on Indian exchanges. The company generates around 73% of its revenue from the U.S. and about 20% from Europe, with minimal exposure to the domestic market, according to statements by CEO and co-founder Baskar Subramanian. That mix aligns the business with global broadcast and streaming cycles, rather than India’s consumer spending trends.
Its platform underpins channel delivery and monetization for media brands and distributors, counting clients such as Lionsgate Studios, Fox, and Sinclair Broadcast Group, along with Roku, Vizio, Rakuten TV, and DirecTV. On the advertising side, integrations with The Trade Desk and Index Exchange speak to its role within the connected TV and free ad-supported streaming TV (FAST) ecosystem. Reliability is a premium feature: even minutes of downtime during major live events can be costly, driving sticky relationships and expansion within existing accounts.
Performance data in the company’s prospectus shows revenue from operations rose 34.6% year-over-year to ₹7.05 billion (about $77 million) in the six months ended September 30, 2025. Net revenue retention of roughly 127% indicates customers boosted spend by 27% on average, a hallmark metric for cloud software providers with strong upsell dynamics.
Cloud shift and competitive pressures for Amagi
Amagi is positioned at the center of a long-running migration from “big iron” broadcast hardware and satellite workflows to cloud-native playout and ad tech. That shift, cited by industry analysts at firms such as Omdia and S&P Global Market Intelligence, continues to gain traction as streamers and broadcasters rationalize costs and seek faster channel launches.
The opportunity is significant, but so is the competition. Legacy broadcast vendors are retooling offerings for the cloud, while hyperscale infrastructure dependencies can pressure gross margins if software mix and pricing do not offset compute and egress costs. Amagi has started rolling out automation and AI-driven tooling to trim labor-heavy operations for clients—an area where higher-margin software could improve profitability if adoption scales.
Use of proceeds and cap table signals from IPO
According to its prospectus, Amagi plans to channel ₹5.50 billion (about $60 million) into technology and cloud infrastructure, with additional funds reserved for potential acquisitions and general corporate purposes. The emphasis on platform investment aligns with its push to expand AI features and deepen integrations across distribution and ad ecosystems.
On the shareholder side, Accel retains close to a 10% stake post-IPO, locking in an estimated 3.3x gain on shares acquired around ₹108 while selling the minimum needed to complete the offering. The company’s last significant private financing, a $100 million round led by General Atlantic in November 2022, provides a reference point for how pricing has adjusted from late-stage private levels to public-market scrutiny.
What The Debut Says About India’s Tech IPOs
India’s pipeline of technology-led listings has been building, even as late-stage venture capital remains selective. Market intelligence firm Tracxn counted 42 tech IPOs in 2025, up from 36 in 2024, underscoring sustained domestic demand. Yet investors are drawing sharper distinctions between consumer-facing names and export-oriented enterprise software, especially those with dollarized revenues and ad cycle sensitivity.
For Amagi, the public narrative now hinges on two deliverables: sustaining high net retention with blue-chip customers and converting platform breadth into margin expansion despite cloud cost headwinds. Management has framed the listing as a milestone rather than a finish line. The next few quarters—when revenue growth, AI adoption, and unit economics are in sharper focus—will determine whether the stock can close its early gap and win a longer-term re-rating.
