Fractal Analytics IPO Successfully Concludes with Strong Institutional Support
The initial public offering (IPO) of artificial intelligence firm Fractal Analytics successfully concluded on Wednesday, February 11, after a strong final day of bidding. The offering, which opened on Monday, February 9, saw qualified institutional buyers (QIBs) driving substantial demand, ensuring the issue sailed through to completion.
Subscription Status and Investor Response
As of the third and final day, the Fractal Analytics IPO was subscribed 2.66 times overall. The QIB segment demonstrated particularly robust interest, being booked 4.18 times. In contrast, the non-institutional investor quota just managed to scrape through with 1.06 times bids, while the retail portion received 1.03 times subscription. The employee reservation segment saw weaker demand, subscribed only 0.61 times.
According to data from the Bombay Stock Exchange (BSE), the IPO received bids for 4,94,79,856 shares against the total offer of 1,85,79,360 shares available.
Grey Market Premium and Pricing Details
The grey market premium (GMP) for Fractal Analytics shares turned negative, standing at -₹2 according to data from investorgain.com. This indicates that shares are trading at ₹2 below the offer price range of ₹857 to ₹900 per share, suggesting a potentially discounted listing when trading begins.
The ₹2,834-crore IPO was priced at ₹857 to ₹900 per share, valuing the company at approximately ₹15,500 crore. Notably, the company reduced the size of its IPO from the initially proposed ₹4,900 crore. The revised issue consists of a fresh equity component of up to ₹1,023.5 crore and an offer for sale (OFS) worth ₹1,810.4 crore.
Shareholder Details and Use of Proceeds
The shareholders participating in the offer for sale include Quinag Bidco Ltd, TPG Fett Holdings Pte Ltd, Satya Kumari Remala Rao, Venkateswara Remala, and GLM Family Trust. Proceeds from the fresh share sale will be allocated toward multiple strategic initiatives:
- Investment in subsidiary Fractal USA
- Debt repayment obligations
- Purchase of laptops and technology infrastructure
- Establishment of new offices across India
- Research and development initiatives
- Expansion of sales and marketing efforts under Fractal Alpha
- Funding for potential acquisitions and strategic partnerships
- General corporate purposes
Company Background and Financial Performance
Founded in 2000, Fractal Analytics provides comprehensive artificial intelligence solutions and data-driven insights to large global enterprises across diverse industries and business functions. The company stands unique as there are no listed companies in India or globally with a directly comparable business model.
Financially, Fractal has demonstrated strong growth momentum. Revenue from operations increased from ₹1,985.4 crore in FY23 to ₹2,196.3 crore in FY24, and further to ₹2,765.4 crore in FY25, reflecting a healthy 25.9% year-over-year growth rate. The company turned profitable in FY25 with a profit after tax (PAT) of ₹220.6 crore, compared to a loss of ₹54.7 crore in the previous fiscal year.
As of March 31, 2025, Fractal's impressive client roster included global technology giants such as Microsoft, Apple, Nvidia, Alphabet (Google), Amazon, Meta (Facebook), and Tesla.
Allotment and Listing Timeline
Investors could apply for the Fractal Analytics IPO in lots of 16 shares. Following the closure of the offer, investor attention now shifts to the allotment process. The Fractal Analytics IPO allotment date is scheduled for Thursday, February 12, with listing expected the following week on February 16.
