Fractal Analytics IPO Receives Strong Demand with 2.66 Times Subscription on Final Day

The initial public offering (IPO) of Fractal Analytics, a provider of AI solutions, saw a subscription rate of 2.66 times on its final bidding day. According to NSE data, the IPO attracted bids for 4,94,79,888 shares compared to the 1,85,79,360 shares available. The company is set to make its stock market debut on February 16.

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Fractal Analytics managed to secure Rs 1,248.26 crore from anchor investors last Friday. The price range for the shares has been established between Rs 857 and Rs 900 each, valuing the company at approximately Rs 15,500 crore. The IPO size was reduced from an initially proposed Rs 4,900 crore to Rs 2,833.9 crore.

Subscription Details and Investor Interest

The quota for qualified institutional buyers (QIBs) was oversubscribed by 4.18 times. Non-institutional investors booked their portion at 1.06 times, while retail investors subscribed to their portion at 1.03 times. This indicates a strong interest from institutional investors in particular.

The revised offer includes a fresh issue of equity shares worth up to Rs 1,023.5 crore and an Offer For Sale (OFS) amounting to Rs 1,810.4 crore. Initially, in August's draft papers, Fractal had planned to raise Rs 4,900 crore through the public issue.

Utilisation of IPO Proceeds

Fractal intends to use the proceeds from the fresh issue for various purposes. These include investing in its subsidiary Fractal USA for debt repayment and purchasing laptops. Additionally, funds will be allocated for setting up new offices in India and investing in research and development.

The company also plans to support sales and marketing under Fractal Alpha and fund acquisitions along with other strategic initiatives. General corporate purposes are also part of the intended use of funds raised through the IPO.

Company Background and Expertise

Founded by Srikanth Velamakanni and Pranay Agrawal in 2000, Fractal Analytics provides data-driven insights across various industries. It supports decision-making through comprehensive AI solutions for large global enterprises.

Fractal is recognised as a leading pure-play data and artificial intelligence firm with expertise in consumer packaged goods & retail, technology, media & telecom, healthcare & life sciences, and banking & financial services sectors.

As of March 31, 2025, Fractal served major global companies such as Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla. This highlights its significant presence and influence across multiple industry verticals worldwide.

With inputs from PTI