Amagi's muted listing cuts valuation 41% to $821 million
Software-as-a-service ( SaaS) firm Amagi Media Labs made a subdued stock market debut on Wednesday, with its market capitalisation declining more than 41% to about $821 million compared to its last private market valuation.
The company was last valued at $1.4 billion in 2022, when it raised $100 million from General Atlantic.
The stock listed at Rs 317 per share on the BSE, a 12.1% discount to its issue price of Rs 361, before recovering to about Rs 348.
The debut came amid a broader market decline after US President Donald Trump’s remarks on Greenland-related tariffs reignited global trade war concerns.
“This is just the start of a long journey. Both for the company and for us founders. I think the listing price does not matter. If you look at it in a longer sequence of things, you have to start one day,” Amagi Media Labs CEO Subramanian told ET on the sidelines of the company’s listing ceremony. “I would like to get our investors to focus on the longer-term growth and prospects of the company, which is super important, more than where it starts and how it does on the first day.”
The company’s early backers and founders also saw a modest dip in paper gains following the listing.
Among investors, Norwest Venture Partners, which holds an 11.3% stake in the company after the initial public offering (IPO), is sitting on a 2.02 times paper gain on its investment, compared with an estimated 2.09 times gain at the time the price band was announced. The investment firm sold 3.38 million shares for Rs 122 crore through the offer-for-sale (OFS) component of the IPO.
Accel India VI (Mauritius), which now owns 7.73% of the company, is sitting on a gain of 3.2 times compared with 3.3 times estimated earlier at the issue price. The fund also participated in the OFS, offloading 5.07 million shares to earn Rs 183 crore.
“Public valuations are dependent on interest rates, demand and supply, and the broader macro environment. From that perspective, we look at things over the long term, where you’re compounding for years. It's a matter of time before these valuations cease to matter,” said Shekhar Kirani, partner at Accel.
Early backer Premji Invest sold 13 million shares via two vehicles, earning about Rs 480 crore through the OFS. Its combined stake in Amagi Media Labs across multiple funds is about Rs 1,437.2 crore after the listing. Its first vehicle, PI Opportunities Fund I, has completely exited its stake in the company.
Founders Baskar Subramanian, Srividhya Srinivasan and Arunachalam Srinivasan Karapattu together hold about 12.6% of the company. At the listing price, their combined stake is valued at around Rs 1,001.3 crore. The value of the stake held by the founders, who did not participate in the OFS, was around Rs 1,038 crore at the upper end of the price band.
The company was last valued at $1.4 billion in 2022, when it raised $100 million from General Atlantic.
The stock listed at Rs 317 per share on the BSE, a 12.1% discount to its issue price of Rs 361, before recovering to about Rs 348.
The debut came amid a broader market decline after US President Donald Trump’s remarks on Greenland-related tariffs reignited global trade war concerns.
“This is just the start of a long journey. Both for the company and for us founders. I think the listing price does not matter. If you look at it in a longer sequence of things, you have to start one day,” Amagi Media Labs CEO Subramanian told ET on the sidelines of the company’s listing ceremony. “I would like to get our investors to focus on the longer-term growth and prospects of the company, which is super important, more than where it starts and how it does on the first day.”
The company’s early backers and founders also saw a modest dip in paper gains following the listing.
Among investors, Norwest Venture Partners, which holds an 11.3% stake in the company after the initial public offering (IPO), is sitting on a 2.02 times paper gain on its investment, compared with an estimated 2.09 times gain at the time the price band was announced. The investment firm sold 3.38 million shares for Rs 122 crore through the offer-for-sale (OFS) component of the IPO.
Accel India VI (Mauritius), which now owns 7.73% of the company, is sitting on a gain of 3.2 times compared with 3.3 times estimated earlier at the issue price. The fund also participated in the OFS, offloading 5.07 million shares to earn Rs 183 crore.
“Public valuations are dependent on interest rates, demand and supply, and the broader macro environment. From that perspective, we look at things over the long term, where you’re compounding for years. It's a matter of time before these valuations cease to matter,” said Shekhar Kirani, partner at Accel.
Early backer Premji Invest sold 13 million shares via two vehicles, earning about Rs 480 crore through the OFS. Its combined stake in Amagi Media Labs across multiple funds is about Rs 1,437.2 crore after the listing. Its first vehicle, PI Opportunities Fund I, has completely exited its stake in the company.
Founders Baskar Subramanian, Srividhya Srinivasan and Arunachalam Srinivasan Karapattu together hold about 12.6% of the company. At the listing price, their combined stake is valued at around Rs 1,001.3 crore. The value of the stake held by the founders, who did not participate in the OFS, was around Rs 1,038 crore at the upper end of the price band.
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