CAM, Trilegal Advise Amagi Media Labs on ₹1,020 Crore IPO Plan

Indus Multimedia, a fast evolving product company in the sphere of cloud media technology, is making an enormous leap forward. It has also revealed that the company will publicize with an Initial Public Offer (IPO) of 1020 crore. This is an important moment not only of the company but also its indication of its evolution and prosperity.

So, what is an IPO and what does this mean to a company such as Amagi? This is how we can put it down in simple words.

What is IPO?

Just think of the company like a private club. This club has just a handful of owners and these are the founders and some of the early investors. When a company opts to make an IPO, it is as though the club is going public. It also sells pieces of ownership, or shares, to many more individuals, including common investors, such as you and me.

This is what is known as an Initial Public Offering (IPO). With the first basis, the share sale is a first time sale by the company to the rest of the population. This is to enable the company to get a great deal of money, which it in turn can use to either expand its business, venture into new grounds or to clear debts.

The Big Plan by Amagi

Amagi Media Labs is a SaaS-based company. This implies that it renders software and services to other enterprises on the internet. In the case of Amagi, it assists the media corporations and television broadcasters to administer and execute their content.

Consider all the various TV channels along with streaming available that you watch. These companies can do things with the help of Amagi technology such as:

• Going to cloud: Amagi assists them to broadcast their channels on the cloud as opposed to using outdated expensive hardware. This renders matters efficient and economical.
• Selective advertising: The platform of Amagi will enable broadcasters to display various ads to various individuals. This is a big deal to the advertisers who wish to target a targeted audience.
• Content management: Handling a new TV channel to the distribution of the channel on multiple streaming devices such as smart TVs and smartphones, Amagi offers a single platform that is easy to use and manage all the processes.

This is an upcoming IPO that consists of a combination of a fresh issue and an offer for sale. The new problem will be where the company issues new shares to raise funds directly. Some of these funds of the 1,020 crores that will be raised under this new issue will be utilized towards activities such as investment in new technology and cloud infrastructure. Offer of sale (OFS) entails part of the existing investors in the company selling their stocks to the populace. This enables them to get profit out of their initial investment.

The Place of the Jurist

The moment an organization thinks of going to the market, it involves a lot of procedures. It comes with a lot of law and regulations, rules and papers, which are preset by the Securities and Exchange Board of India (SEBI). It is here that old law firms would come in. They are like mentors who make the tough journey a little easier in the company.

In the case of Amagi, two of the largest law firms of India are engaged: Cyril Amarchand Mangaldas (CAM) and Trilegal.

• Amagi Media Labs is being advised by Cyril Amarchand Mangaldas (CAM) directly. They are assisting the company in ensuring that all the legal operations of the IPO have been done. These are to prepare the huge amount of papers that are required, to make sure that the company adheres to all the rules and to offer legal advise during the whole process.
• Trilegal is counseling the “book running lead managers.” These are the investment banks that are assisting in the management of IPO as well as selling the shares to investors. The task of Trilegal is to ensure that these banks as well are acting in line with all the legal requirements. Such investment banks are huge market names like Kotak Mahindra Capital, Citigroup Global Markets, Goldman Sachs, IIFL Capital, and Avendus Capital.

The fact that we have these best law firms will demonstrate how serious and important this IPO will be. Their knowledge means that the entire process will go on without any hitches and all those involved are legally safeguarded.

Why Amagi IPO is so Big

The fact that Amagi Media Labs started off as a Bengaluru-based small startup and became a firm in the plans of an IPO worth multi crores is a success story. It was established in 2008 and has grown to become one of the leading companies in the world in its line of service with the client all over the world.

Not only will this IPO be used to raise funds that Amagi can use in future growth but it will also create more awareness to the new Indian tech and SaaS sector. It reveals that the Indian companies are not only serving the local market, rather creating products and services of world class that are applicable in the global market.

The IPO also gives the early investors of the company a last opportunity to have a pay back on their investment. These investors such as big ones like Norwest Venture Partners, Accel, and Premji Invest have been behind Amagis journey over the years. The share on offer from the sale side of the IPO will enable them to off-load part of their holdings and make something out of it.

Amagi will be even closer to its IPO and will release more details in the next weeks. All of the information about the company such as its financial performance, its future plans and how it intends to spend the IPO money will be revealed to the world. It is an opportune and thrilling time to be at Amagi, in the mind of the employees and investors who believe in the vision of the company.

When a good idea, a solid technology and a strong team support it, amazing success can result and Amagi IPO story can serve as a great illustration of this scenario. It underscores the need to have professional legal advice in a complicated world of finances and business. As it goes public, this is one of the first entrants in this media and entertainment technology market, and thus everyone will be watching the company.