Primary Market Revives with Fractal Analytics and Aye Finance IPOs
Following a brief hiatus around the Union Budget, India's primary market has sprung back to life with two significant mainboard initial public offerings (IPOs) opening for subscription. Fractal Analytics and Aye Finance commenced their bidding processes on February 9, 2026, marking a renewed wave of capital market activity. This resurgence signals a packed IPO pipeline for the coming months, featuring some of the nation's most valuable and strategically pivotal companies.
IPO Pipeline: A Glimpse into India's Corporate Future
The landscape for upcoming IPOs is brimming with high-profile names from diverse sectors. Telecom behemoths, financial powerhouses, and energy and infrastructure subsidiaries are among the entities preparing to go public. Notable companies anticipated to launch their IPOs this year include Jio Platforms, Hero FinCorp, SBI Mutual Fund, NLC India Renewables, Indian Gas Exchange, and Mahanadi Coal Fields. This influx underscores India's robust economic growth and the increasing appetite for public market investments.
IPO Details: Price Bands and Subscription Windows
Both Fractal Analytics and Aye Finance opened for bidding on February 9 and will conclude on February 11. Fractal Analytics has set its price band at ₹857 to ₹900 per share, while Aye Finance has fixed its band at ₹122 to ₹129 per share. These offerings provide retail and institutional investors with opportunities to participate in the growth stories of an AI-driven analytics firm and a micro, small, and medium enterprise (MSME) focused non-banking financial company (NBFC).
Grey Market Premium Trends: Sentiment Analysis
Grey market sentiment currently favors Fractal Analytics over Aye Finance. Fractal IPO shares are commanding a substantial grey market premium (GMP) of ₹8, suggesting a likely listing price of ₹908. This represents a 0.89% premium over the upper issue price of ₹900, indicating positive investor anticipation for the AI sector.
In contrast, Aye Finance IPO shares are trading at a GMP of ₹0, pointing to a potential listing price around ₹129, which aligns with its issue price. This neutral sentiment reflects a balanced view on the NBFC's valuation and market prospects.
Subscription Status: Day 1 Performance
By the end of the first day, Fractal Analytics IPO was subscribed 3%. The retail portion saw 11% subscription, while the non-institutional investor (NII) portion was booked 2%. The qualified institutional buyers (QIBs) portion received no bids, and the employee portion was subscribed 3%. Overall, the issue garnered bids for 4.48 lakh shares against an offer of 1.76 crore shares.
Aye Finance IPO demonstrated stronger initial traction with a 13% subscription rate. The retail portion was booked 28%, NII portion bid 1%, and QIB portion subscribed 14%. The company received bids for 54.75 lakh shares against an offer of 4.25 crore shares.
Brokerage Reviews: Investment Insights
Brokerage firms have provided assessments based on business fundamentals, valuation comfort, and long-term growth visibility. Swastika Investmart highlighted Aye Finance's strong fundamentals, consistent revenue and profit growth, and reasonable valuation. The company's price-to-earnings (P/E) ratio of approximately 14x based on FY25 earnings is viewed as competitive among listed NBFC peers. The brokerage recommends the IPO for long-term investors confident in MSME lending growth and with moderate risk tolerance.
Geojit suggested subscribing to the Fractal Analytics IPO despite its relatively expensive valuations. At the upper price band of ₹900, Fractal is valued at a P/E of 70x for FY25 and 109x for FY26E. However, the firm offers a compelling opportunity in India's enterprise AI ecosystem, supported by a strong global client base, improving profitability, and exposure to a rapidly growing sector. Geojit recommends a 'Subscribe' rating for high-risk investors with a long-term horizon.
Fractal Analytics IPO: Key Highlights
Fractal Analytics aims to raise ₹2,833.90 crore through its IPO, comprising a fresh equity issuance of 1.14 crore shares worth ₹1,023.50 crore and an offer for sale (OFS) of 2.01 crore shares aggregating ₹1,810.40 crore. The lot size for retail investors is 16 shares, requiring a minimum investment of ₹14,400 at the upper end. Allotment is expected on February 12, 2026, with listing likely on February 16, 2026, on both BSE and NSE. Axis Capital Ltd. serves as the book-running lead manager, and MUFG Intime India Pvt. Ltd. is the registrar.
Net proceeds will be utilized for multiple objectives, including:
- Investment of ₹264.90 crore in subsidiary Fractal USA for debt repayment.
- Allocation of ₹57.10 crore for laptop purchases.
- ₹121.10 crore for setting up new office premises in India.
- ₹355.10 crore for research and development and sales and marketing under Fractal Alpha.
- Remaining funds for inorganic growth through acquisitions and general corporate purposes.
Founded in March 2000, Fractal Analytics is a global enterprise AI and analytics company with over two decades of experience, helping large organizations make data-driven decisions through AI solutions.
Aye Finance IPO: Key Highlights
Aye Finance seeks to raise ₹1,010 crore via its IPO, consisting of a fresh issue of 5.50 crore shares worth ₹710 crore and an OFS of 2.33 crore shares valued at ₹300 crore. The lot size is 116 shares, requiring a minimum retail investment of ₹14,964. Allotment is anticipated on February 12, 2026, with listing expected on February 16, 2026, on both BSE and NSE.
Net proceeds from the fresh issue will be used to:
- Augment the company's capital base for future requirements.
- Enhance brand visibility and establish a public market for equity shares in India.
- Support existing business activities and initiatives as per the company's Memorandum of Association.
Incorporated in 1993, Aye Finance Limited is an NBFC providing secured and unsecured loans to small businesses for working capital needs. Its product portfolio includes mortgage loans, 'Saral' Property Loans, and secured and unsecured hypothecation loans, primarily serving micro-scale MSMEs across manufacturing, trading, services, and agriculture segments.
Disclaimer: The views and recommendations above are from individual analysts or broking companies and not of Bharat Horizon. Investors are advised to consult certified experts before making investment decisions.
