Fractal Analytics IPO Enters Second Day with 9% Subscription
The initial public offering (IPO) of Fractal Analytics Ltd, a prominent artificial intelligence and analytics firm, has progressed into its second day of bidding as of Tuesday, February 10, 2026. The public issue, which commenced subscription on Monday, February 9, has recorded a modest 9% subscription rate after the first day of the process.
IPO Timeline and Key Details
The Fractal Analytics IPO window remains open for public subscription until Wednesday, February 11. Following the closure, the allotment of shares is anticipated to occur on Thursday, February 12. Investors can expect the tentative listing of Fractal Analytics shares on the stock exchanges to take place on Monday, February 16. The company's equity will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The price band for the IPO has been established at ₹857 to ₹900 per share, with a lot size comprising 16 shares. At the upper limit of the price band, the company is targeting to raise a substantial ₹2,833.90 crore from this public offering. This fundraising effort consists of a fresh issue of 1.14 crore equity shares, valued at ₹1,023.50 crore, combined with an offer-for-sale (OFS) component of 2.01 crore shares, amounting to ₹1,810.40 crore.
Subscription Status Across Investor Categories
As of the close of the first day, the Fractal Analytics IPO subscription stood at 9%. A detailed breakdown reveals varied interest across different investor segments:
- Retail Individual Investors (RIIs): This category demonstrated the strongest initial interest, with the issue being subscribed 35%.
- Non-Institutional Investors (NIIs): Subscription in this segment reached 7%.
- Qualified Institutional Buyers (QIBs): Notably, institutional investors had not yet placed their bids by the end of the first day.
Kotak Mahindra Capital is serving as the book running lead manager for this offering, while MUFG Intime India has been appointed as the IPO registrar.
Grey Market Premium and Financial Performance
The grey market premium (GMP) for the Fractal Analytics IPO is currently subdued. According to sources monitoring the unofficial grey market, the GMP today is ₹8 per share. This indicates that in the grey market, Fractal Analytics shares are trading at approximately ₹908 per share, representing a premium of 0.89% over the upper issue price of ₹900.
Fractal Analytics positions itself as India's leading pure-play enterprise in Data, Analytics, and Artificial Intelligence (DAAI). The company assists major organizations in making data-driven decisions through its deep technical capabilities and strong domain expertise.
The company's financial trajectory shows a revenue Compound Annual Growth Rate (CAGR) of 18.0% between FY23 and FY25. Its operational profitability has exhibited a steady recovery pattern:
- FY23: Reported a loss of ₹116 crore.
- FY24: Achieved a profit of ₹73 crore, which constituted 3.3% of revenue.
- FY25: Profit surged to ₹350 crore, accounting for 12.7% of revenue.
- 6MFY26: Profit stood at ₹200 crore, representing 12.8% of revenue.
Analysts note that while operating cash flow moderated in the first quarter of FY26, the overall trend suggests an improvement in cash generation alongside growing profitability.
Analyst Recommendations and Valuation
Brokerage firms have provided their assessments of the IPO. At the upper price band of ₹900 per share, the company is trading at a Price-to-Earnings (P/E) ratio of 110.0x based on its annualized FY26 earnings. BP Equities has issued a 'SUBSCRIBE' rating for the issue, citing the company's strong positioning within the rapidly expanding AI market and its improving profitability profile, recommending it from a medium-to-long-term perspective.
GEPL Capital highlighted that relative to the company's paid-up capital and based on FY25 earnings, the issue is priced at a P/E ratio of 79x. The brokerage firm emphasized Fractal Analytics' status as India's leading pure-play AI company, its roster of marquee clients, improving financial performance, and robust technical capabilities. Consequently, GEPL Capital also recommends a 'Subscribe' rating for the IPO.
Disclaimer: The views and recommendations presented are those of individual analysts or brokerage companies and should not be construed as investment advice. Investors are advised to consult with certified experts before making any investment decisions.
