Amagi Media Labs' Rs 1,789 cr IPO opens for bidding. Should you apply or skip?
Amagi Media Labs, a data-driven advertising technology company focused on connected TV and digital video advertising, opened its Rs 1,788.62 crore IPO for subscription on Tuesday, with early market signals pointing to a measured rather than euphoric listing.
The IPO is seeing a grey market premium of around 4%, indicating modest expectations of listing gains amid a volatile broader equity environment and heightened scrutiny of valuations in new-age technology listings.
The issue comes at a time when primary market sentiment has turned selective, with investors increasingly differentiating between cash-generating businesses and high-growth but loss-making platforms.
What the IPO is about
Amagi operates in the fast-growing connected TV (CTV) and programmatic advertising space, helping advertisers target audiences across streaming platforms while enabling publishers to better monetise inventory. The company has built its presence across global markets, particularly in the US, where connected TV advertising continues to see structural growth as consumers shift away from traditional cable.
The IPO comprises a combination of fresh equity issuance and an offer-for-sale by existing shareholders. Proceeds from the fresh issue are expected to be used largely to support growth initiatives, technology investments and general corporate purposes, while the OFS component allows early investors to partially monetise their holdings.
Grey market cues remain subdued
Unofficial market tracking indicates a grey market premium of about 4%, a relatively restrained signal compared with the double-digit premiums seen in stronger primary market cycles. The modest GMP reflects both the current risk-off sentiment in equities and investor caution around technology and internet-linked businesses after a mixed track record of recent listings.
Financial profile and business backdrop
Amagi has shown steady revenue growth over recent years, supported by rising ad spends on connected TV and increased adoption of programmatic advertising tools by global brands. The company has also made progress on operating metrics, with improving margins as scale benefits kick in.
However, like many adtech firms, Amagi remains exposed to cyclical advertising budgets, which can soften during periods of global economic uncertainty. Currency movements, client concentration and competitive intensity in global adtech markets are also among the key risks highlighted in the offer document.
Analyst view: Subscribe, but expectations tempered
Brokerages tracking the issue are advising investors to calibrate expectations and focus on the medium- to long-term opportunity rather than short-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 space. However, the note also flags valuation comfort and broader market conditions as near-term variables.
"We recommend a subscribe-for-long-term-investors approach, given Amagi's exposure to a structurally growing segment like connected TV advertising, but listing gains may remain limited in the current market environment," the brokerage said.
What investors should watch
Subscription trends over the first two days, particularly participation from institutional investors, will be key in shaping sentiment around the issue. Strong QIB interest could help offset the subdued grey market cues, while weak demand could reinforce concerns around near-term valuations.
Investors will also track broader market stability, as ongoing volatility has a direct bearing on IPO appetite, especially for technology-led offerings.
( Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The IPO is seeing a grey market premium of around 4%, indicating modest expectations of listing gains amid a volatile broader equity environment and heightened scrutiny of valuations in new-age technology listings.
The issue comes at a time when primary market sentiment has turned selective, with investors increasingly differentiating between cash-generating businesses and high-growth but loss-making platforms.
What the IPO is about
Amagi operates in the fast-growing connected TV (CTV) and programmatic advertising space, helping advertisers target audiences across streaming platforms while enabling publishers to better monetise inventory. The company has built its presence across global markets, particularly in the US, where connected TV advertising continues to see structural growth as consumers shift away from traditional cable.
The IPO comprises a combination of fresh equity issuance and an offer-for-sale by existing shareholders. Proceeds from the fresh issue are expected to be used largely to support growth initiatives, technology investments and general corporate purposes, while the OFS component allows early investors to partially monetise their holdings.
Grey market cues remain subdued
Unofficial market tracking indicates a grey market premium of about 4%, a relatively restrained signal compared with the double-digit premiums seen in stronger primary market cycles. The modest GMP reflects both the current risk-off sentiment in equities and investor caution around technology and internet-linked businesses after a mixed track record of recent listings.
Financial profile and business backdrop
Amagi has shown steady revenue growth over recent years, supported by rising ad spends on connected TV and increased adoption of programmatic advertising tools by global brands. The company has also made progress on operating metrics, with improving margins as scale benefits kick in.
However, like many adtech firms, Amagi remains exposed to cyclical advertising budgets, which can soften during periods of global economic uncertainty. Currency movements, client concentration and competitive intensity in global adtech markets are also among the key risks highlighted in the offer document.
Analyst view: Subscribe, but expectations tempered
Brokerages tracking the issue are advising investors to calibrate expectations and focus on the medium- to long-term opportunity rather than short-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 space. However, the note also flags valuation comfort and broader market conditions as near-term variables.
"We recommend a subscribe-for-long-term-investors approach, given Amagi's exposure to a structurally growing segment like connected TV advertising, but listing gains may remain limited in the current market environment," the brokerage said.
What investors should watch
Subscription trends over the first two days, particularly participation from institutional investors, will be key in shaping sentiment around the issue. Strong QIB interest could help offset the subdued grey market cues, while weak demand could reinforce concerns around near-term valuations.
Investors will also track broader market stability, as ongoing volatility has a direct bearing on IPO appetite, especially for technology-led offerings.
( Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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