Amagi Shares Plummet 12% on Debut, Signaling IPO Market Caution

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AuthorRiya Kapoor|Published at:
Amagi Shares Plummet 12% on Debut, Signaling IPO Market Caution
Overview

Media SaaS firm Amagi's shares commenced trading at a significant discount on debut. The stock listed on BSE at INR 317, down 12.2% from its INR 361 IPO price. This marks a subdued opening for the first new-age tech company to go public in 2026, raising concerns about investor sentiment towards recent tech listings. Early investors, however, saw substantial gains.

Amagi's initial public offering, comprising INR 816 crore in fresh capital and an offer for sale of 2.69 crore shares, saw its stock debut below the set price band. The public issue, which closed subscribed over 30 times, was priced at INR 361 per share at the upper end, valuing the company at approximately INR 7,966 crore. Early investors, including Premji Invest's PI Opportunities Fund I, Accel, and Norwest Venture Partners, participated in the offer for sale. Premji Invest reportedly achieved a remarkable 16.8 times return on its investment.

Use of Proceeds

The software company plans to utilize the funds raised to bolster its technology and cloud infrastructure. It also intends to pursue unidentified acquisitions. Amagi, founded in 2008, specializes in advertising technology solutions for connected TV (CTV), programmatic advertising, and data analytics, serving global media owners and advertisers.

Financial Performance

In the first half of fiscal year 2025, Amagi reported a net profit of INR 6.5 crore, a significant turnaround from a net loss of INR 66 crore in the previous comparable period. Operating revenue surged by 35% year-on-year to INR 704.8 crore. This listing is the first for a new-age technology company in 2026, and its muted debut may cast a shadow over upcoming IPOs in the sector, signaling potential investor caution. Amagi's technology enables server-side ad insertion into video streams, bypassing ad blockers and ensuring consistent delivery across devices. The company had previously raised INR 805 crore from anchor investors.

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