Media SaaS unicorn Amagi has filed the red herring prospectus (RHP) for its initial public offering (IPO), a couple of months after receiving SEBI’s approval for its DRHP. 

The IPO will open on January 13 and subsequently close on January 16, making the company the first new-age tech company to list in 2026. Anchor bidding will take place on January 12. 

The company has significantly cut the size of its issue from what was initially proposed. It has reduced the fresh issue size to INR 816 Cr from the initially proposed INR 1,020 Cr, reflecting a 25% cut. Further, the offer for sale (OFS) component of the IPO has also been trimmed by 22% to 2.69 Cr shares from 3.41 Cr shares earlier.

Amagi has set a price band of INR 343 to INR 361 for the public issue, implying IPO size of INR 1,788.6 Cr (about $200 Mn) at the upper end of the price band.

The IPO would value the company at about INR 7,966 Cr (about $885 Mn) at the top of the price band, a significant cut of 37% from its last private valuation of $1.4 Bn.

The largest selling investor in Amagi’s IPO would be Premji Invest, which plans to offload 1.33 Cr shares from its two holding entities. The VC would register a 26.3X return on its investment in the company via the offering at the upper end of the price band. Premji Invest is the largest public shareholder in Amagi, commanding a 26.55% stake in the company. 

Among institutional investors, Accel and Trudy Holdings will sell 50.72 Lakh shares each. While Accel is looking at a 3.33X return on its bet on Amagi, Trudy Holdings would rake in a 3.21X return. The list of selling investors also includes Norwest Venture Partners (33.81 Lakh shares), Rahul Garg (60,000 shares), Rajat Garg (22,725 shares), among others. 

It is pertinent to note that Norwest Ventures has trimmed the number of shares it plans to sell by a whopping 57% from 79.05 Lakh shares proposed in the DRHP.

Accel has cut its OFS by 20% from 60.64 Lakh shares, while Trudy Holdings has increased its OFS size by about 68% from the initially proposed 30.26 Lakh shares. 

Besides, AVP Fund- I (formerly known as Avataar Venture Partners) has withdrawn its entire OFS of 18.65 Lakh shares. The investor sold its stake to promoter group entity Vinculum Advisors LLP in a deal in July.

On the fresh issue front, the company intends to utilise the proceeds from the IPO to invest in its tech and cloud infrastructure and fuel certain unidentified acquisitions. Of the total INR 816 Cr fresh issue, it intends to spend INR 550 Cr to bolster its tech and cloud infra. 

“We aim to reinforce our long-term technology roadmap by scaling up our cloud infrastructure for enhancing our product leadership across the video value chain and deepening our AI-driven capabilities in broadcasting and monetisation,” Amagi said.

For context, the SaaS company connects media companies to their audiences via its cloud-native technology. It helps broadcasters, streaming platforms and content owners to get a vantage point over their content’s performance, allowing them to create, manage, deliver and monetise video channels. 

It operates across the full lifecycle of video advertising for TV and streaming platforms. The company’s software first ingests video content from studios, creators, and live events into the cloud. The content is then processed and prepared – organised, checked for quality, subtitled, and adapted for different languages and regions. 

Next, Amagi packages the content to meet the technical requirements of various broadcasters and digital platforms. The company then delivers the streams reliably to viewers across geographies. It monetises the content by inserting and managing ads, enabling both programmatic and direct ad sales for publishers and platforms.

The SaaS major was founded by Baskar Subramanian, Srividhya Srinivasan and Srinivasan KA in 2008. The startup has raised about $360 Mn over the years, attaining unicorn status during its $95 Mn fundraise in 2022. 

As is the case for a lot of IPO-bound new-age tech companies, Amagi turned profitable ahead of going public. It posted a net profit of INR 6.5 Cr in the first six months (H1) of FY26 as against a loss of INR 66 Cr in the same period of previous year. 

The profitability came on the back of a healthy revenue growth. Its operating revenue surged 35% to INR 704.8 Cr in H1 FY26 from INR 523.7 Cr a year ago. 

Distribution and playout services accounted for the largest chunk of revenue, bringing in INR 689.7 Cr. This was a growth of 36% YoY. The company’s AdPlus revenue, however, declined about 6% YoY to INR 15.1 Cr.

Including other income of INR 29.1 Cr, Amagi’s total income for the period stood at INR 733.9 Cr.

Meanwhile, total expenditure rose 18% YoY to INR 722.3 Cr.

Notably, Amagi reported a 72% YoY decline in its net loss to INR 68.7 Cr in FY25, while its revenue rose 32% to INR 1,162.6 Cr.

[Edited by: Vinaykumar Rai]