Founders, investors see paper gains shrink as Amagi lists at 12% discount

Early backers and founders of Amagi Media Labs, a software-as-a-service (SaaS) company that provides cloud-based technology for video streaming and advertising, saw their paper gains shrink after its stock market debut on Wednesday.

The stock listed at Rs 317 per share on the BSE, a 12.1% discount to its issue price of Rs 361. It is currently trading at a market capitalisation of Rs 6,857 crore.

The subdued listing comes amid a broader market decline after US President Donald Trump’s remarks on Greenland-related tariffs reignited global trade war concerns.

Among investors, Norwest Venture Partners, which holds a 11.3% stake in the company post-IPO, is sitting on a 1.8x paper gain on its investment, compared with an estimated 2.1x gain at the time the price band was announced. The investment firm sold 33.8 lakh shares for Rs 122 crore through the offer-for-sale component of the IPO.

Accel India VI (Mauritius), which now holds a 7.73% stake in the company, is sitting on a gain of 2.9x compared with 3.3x estimated earlier at the issue price. The fund also participated in the OFS, offloading 50.7 lakh shares to earn Rs 183 crore.

Early investor Premji Invest sold 1.3 crore shares through two vehicles, earning around Rs 480 crore through the OFS. Its first fund, PI Opportunities Fund I, has completely exited its stake in Amagi.

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 912 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.

Meanwhile, the stake held by General Atlantic is now worth around Rs 543.5 crore, compared with Rs 619 crore before the listing.

Amagi's IPO was subscribed 30 times, despite the geopolitical concerns that affected the stock market.

The company raised Rs 1,789 crore through the IPO, lower than the Rs 2,254 crore it had initially proposed. On a post-money basis, the IPO valuation was at around $869 million, marking a 38% drop from its $1.4-billion unicorn valuation in 2022.

In an earlier interaction with ET, Amagi managing director and chief executive Baskar Subramanian said the IPO pricing was guided by institutional investor feedback rather than valuation expectations.

Founded in 2008, Amagi offers cloud-based software to global media companies, helping them modernise broadcast operations, distribute content across streaming platforms, and monetise audiences through targeted advertising.

The company counts around 45% of the world’s top 50 listed media and entertainment companies among its customers.