Cloud TV software firm Amagi Media Labs experienced a rocky debut on the Indian stock market, with shares initially sliding below the IPO price before recovering slightly. The Bengaluru-based company, which raised ₹17.89 billion (approximately $196 million) through its initial public offering, is a notable listing in a market where consumer-focused companies typically dominate IPO activity.

Amagi's shares opened at ₹318 on Wednesday, a 12% discount to the issue price of ₹361. The stock then climbed to ₹356.95 before settling to around ₹348.85, giving the company a valuation of ₹75.44 billion (approximately $825.81 million), according to the National Stock Exchange. This valuation is significantly lower than the $1.4 billion valuation Amagi achieved in a private funding round in November 2022, when it raised $100 million led by General Atlantic. The IPO saw strong investor interest, with demand exceeding the available shares by over 30 times. The ₹196 million IPO included a fresh issue of shares worth ₹8.16 billion.

Amagi's market debut highlights the challenges faced by technology companies listing on Indian exchanges, particularly those with a significant portion of their revenue generated overseas. The company's performance could influence investor sentiment towards other Indian tech firms considering similar IPOs.

Amagi provides cloud-based software solutions that enable TV networks and streaming services to distribute, manage, and monetize their video content. Its platform allows broadcasters to transition from traditional infrastructure to cloud-based workflows, offering greater flexibility and scalability. The company generates almost all of its revenue outside India, with approximately 73% coming from the U.S. and about 20% from Europe, according to CEO and co-founder Baskar Subramanian. This makes Amagi a rare example of an export-first technology company listing on Indian exchanges.

Looking ahead, Amagi's success will depend on its ability to maintain its growth trajectory in international markets and demonstrate the value of its cloud-based solutions to the broadcasting and streaming industries. The company's management believes that the IPO will provide the capital needed to further expand its product offerings and geographic reach. However, the initial market reaction suggests that investors may be taking a cautious approach, closely monitoring Amagi's performance in the coming quarters.