Fractal Analytics IPO sees muted response on Day 1

The initial public offer of artificial intelligence solutions provider Fractal Analytics received a muted response from investors, garnering 9% subscription on the first day of bidding on Monday.

The three-day initial public offering (IPO) received bids for 15,80,336 shares against 1,85,79,360 shares on offer, according to NSE data.

The category for retail individual investors (RIIs) fetched 35% subscription, while the quota for non-institutional investors subscribed 7%.

The Rs 2,834-crore IPO of artificial intelligence (AI) solutions provider Fractal Analytics will conclude on February 11.

On Friday, Fractal Analytics garnered Rs 1,248.26 crore from anchor investors.

The price band has been fixed at Rs 857 to Rs 900 per share, valuing the company at nearly Rs 15,500 crore.

Fractal has scaled down the size of its IPO from the Rs 4,900 crore it had initially proposed.

The revised offer comprises a fresh issue of equity shares worth up to Rs 1,023.5 crore and an offer for sale (OFS) of Rs 1,810.4 crore, taking the total issue size to Rs 2,833.9 crore.

In its draft papers filed in August, the company had planned to raise Rs 4,900 crore through the public issue.

Those selling shares in the OFS include Quinag Bidco Ltd, TPG Fett Holdings Pte. Ltd, Satya Kumari Remala Rao, Venkateswara Remala and GLM Family Trust.

Fractal plans to use the proceeds from fresh issue to invest in its subsidiary, Fractal USA, for pre-payment or repayment of its borrowings; buy laptops; set up new offices in India; invest in research and development; support sales and marketing under Fractal Alpha; fund acquisitions and other strategic initiatives; and for general corporate purposes.

The company will make its stock market debut on February 16.

Fractal, which was co-founded by Srikanth Velamakanni and Pranay Agrawal in 2000, supports large global enterprises across multiple industry verticals and business functions with data-driven insights and assists in decision-making through end-to-end AI solutions.

Backed by marquee investors like TPG, Apax, Gaja, Fractal is a leading pure play data and artificial intelligence company and has domain expertise spanning across consumer packaged goods & retail, technology, media and telecom, healthcare and life sciences and banking, financial services and insurance.

As of March 31, 2025, the firm served global companies which include Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla.

Fractal on Saturday said it raised Rs 1,248.26 crore from anchor investors, allotting shares at the upper end of its price band of Rs 900 apiece. The Mumbai-based company allotted 1,38,69,499 equity shares to 52 anchor investors. Of the total allocation, about 38% or 52,77,680 shares were allotted to 11 domestic mutual funds across 22 schemes.

For FY25, it reported revenue from operations of 2,765.4 crore and a profit after tax of Rs 220.6 crore. EBITDA stood at Rs 398 crore, translating to a margin of 14.4%, while adjusted EBITDA was Rs 482.1 crore.

(With inputs from PTI.)