SaaS unicorn Amagi set to launch Rs 1,789 cr IPO

MUMBAI: SaaS unicorn Amagi Media Labs is set to get listed on the bourses later this month, joining a clutch of startup peers heading to Dalal Street. At the upper end of the IPO price band set at Rs 361 per share, the total issue size is Rs 1,789 crore. The company is raising up to Rs 816 crore through a fresh issue of shares, lower than the initially targeted Rs 1,020 crore. The balance will be an offer for sale (OFS) by existing shareholders including Accel and Norwest Venture Partners who will now collectively sell up to 2.7 crore shares than the earlier estimated 3.4 crore shares.

At the upper end of the price band, the company’s implied valuation is about Rs 7,810 crore. The IPO opens for bidding on Jan 13. Founders Baskar Subramanian, Arunachalam Srinivasan Karapattu and Srividhya Srinivasan will together hold 15% stake in the firm post IPO and are not selling any shares. “There was no real pressure from an investment standpoint to raise money. A public company delivers value…also, given the longevity of the company, we wanted our employees to have some sort of liquidity event,” Subramanian told TOI in an interview. Besides, an IPO also gives currency from an acquisition standpoint, said Subramanian.

Launched in 2008, the Bengaluru-based firm connects media companies to their audiences through cloud-native technology and gets the bulk of its revenues from the US and Europe. It will use a portion of the IPO proceeds to invest in technology and cloud infrastructure amid rapid advancement of AI which is reshaping the way industries operate. Amagi turned unicorn in 2022 when it raised $95 million from investors at a valuation of over $1 billion.

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