Amagi IPO unlocks 14x returns for Premji Invest, multi-fold gains for others

Bengaluru-based SaaS firm Amagi Media Labs Ltd has filed its red herring prospectus (RHP) and announced a price band of Rs 343–Rs 361 per share for its upcoming initial public offering (IPO).

According to analysis done by Entrackr, marquee venture capital firms including Premji Invest, Norwest Venture Partners and Accel India are staring at multi-fold gains on their initial investments.

PI Opportunity Fund (Premji Invest), the largest institutional shareholder in Amagi, invested nearly Rs 114 crore at an average acquisition cost of around Rs 25.5 per share. At the upper end of the IPO price band, the fund’s stake is now valued at over Rs 1,610 crore, translating into a return of over 14x. The fund is set to partially exit via an offer-for-sale (OFS) of about 1.33 crore shares, which alone is worth nearly Rs 480 crore.

Norwest Venture Partners X, which invested around Rs 504 crore, is also poised for a significant payday. Its holding is now valued at approximately Rs 1,056 crore, a little over a 2x return. The firm is selling 33.8 lakh shares worth about Rs 122 crore in the IPO.

Similarly, Accel India, which invested nearly Rs 246 crore, is set to see its stake grow to around Rs 821 crore, generating over 3x returns. Accel plans to offload more than 50.7 lakh shares through the OFS, valued at about Rs 183 crore at the IPO price band. Trudy Holdings, another early backer, has also clocked a more than 3x jump, with its stake now valued at over Rs 461 crore.

Apart from institutional investors, several early individual shareholders are also set to achieve substantial gains. Angel investors such as Prem Gupta, Moglix’s founder Rahul Garg, Rajat Garg and Rajesh Ramaiah who invested small amounts in Amagi, saw their holdings multiply several times over, with returns ranging from 5x to over 15x, despite modest capital outlay.

Amagi’s IPO is also expected to significantly boost the wealth of its founding team. The company’s promoters i.e. Baskar Subramanian, Srividhya Srinivasan and Arunachalam Srinivasan, together hold a substantial stake in the company, which is now valued at Rs 1,039 crore at the IPO price band.

Individually, Baskar Subramanian’s holding is valued at around Rs 345 crore, while Srividhya Srinivasan and Arunachalam Srinivasan hold stakes worth approximately Rs 345 crore and Rs 348 crore, respectively.

Amagi’s Rs 1,788.62 crore public issue will open for subscription on January 13 and close on January 16, while the anchor book will open on January 12. The company has fixed the lot size at 41 shares, translating to a minimum retail investment of around Rs 14,800 at the upper end of the price band.