Fractal Analytics IPO Wraps Up Bidding Amid Lukewarm Investor Interest
The initial public offering (IPO) of Fractal Analytics, a leading provider of artificial intelligence solutions, has entered its third and final day of bidding on Wednesday, February 11. The offering has garnered a subdued response from the investment community, with subscription levels remaining notably low as the window closes.
Subscription Status and Revised Issue Details
As of the close of the second day, the Fractal Analytics IPO was booked merely 20%, reflecting cautious sentiment among market participants. The company has significantly downsized its public offering from an initially proposed ₹4,900 crore to a revised total of ₹2,833.9 crore. This adjusted issue comprises a fresh equity component of up to ₹1,023.5 crore and an offer for sale (OFS) valued at ₹1,810.4 crore.
Shareholders participating in the OFS include prominent entities such as Quinag Bidco Ltd, TPG Fett Holdings Pte Ltd, Satya Kumari Remala Rao, Venkateswara Remala, and the GLM Family Trust. The price band for the IPO is set between ₹857 and ₹900 per share, which places the company's valuation at approximately ₹15,500 crore.
Utilization of Proceeds and Strategic Focus
The capital raised from the fresh issue will be strategically allocated across multiple key areas to bolster the company's growth trajectory. Key deployment plans include:
- Investment in its subsidiary, Fractal USA, to enhance international operations.
- Repayment of existing debt to strengthen the balance sheet.
- Procurement of laptops and establishment of new office facilities in India.
- Funding for research and development initiatives to drive innovation in AI.
- Expansion of sales and marketing efforts under the Fractal Alpha division.
- Support for potential acquisitions and other strategic corporate initiatives.
- General corporate purposes to ensure operational flexibility.
Grey Market Premium and Listing Expectations
The grey market premium (GMP) for Fractal Analytics shares has experienced a notable decline, currently standing at just ₹7. This translates to an unofficial trading price of ₹907 per share, compared to the upper end of the offer price at ₹900. At these levels, analysts anticipate a listing pop of less than 1% when the shares debut on the stock exchanges, scheduled for February 16.
Company Background and Client Portfolio
Founded in the year 2000, Fractal Analytics has established itself as a premier provider of end-to-end AI solutions and data-driven insights. The company serves large global enterprises across diverse industries, with specialized expertise in sectors such as:
- Consumer packaged goods and retail.
- Technology, media, and telecommunications.
- Healthcare and life sciences.
- Banking, financial services, and insurance.
As of March 31, 2025, Fractal's impressive client roster featured industry titans including Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla, underscoring its reputation as a trusted partner in the AI domain.
Investors are closely monitoring the final hours of bidding as Fractal Analytics seeks to conclude its public offering amidst a challenging market environment.
