Fractal Analytics IPO Sees Tepid Response on Opening Day
The initial public offering (IPO) of Fractal Analytics, a prominent enterprise data analytics and artificial intelligence company, received a notably muted response on its first day of subscription. The offering, which is based in Chennai, managed to attract bids for a mere 9% of the total shares issued, highlighting a cautious market sentiment.
Detailed Subscription Figures Reveal Investor Apathy
On the inaugural day, the company received bids for 15.8 lakh shares against the substantial 1.85 crore shares that were made available. This underwhelming performance underscores the challenges faced by tech IPOs in the current economic climate. The subscription breakdown provides further insight into the lukewarm reception.
Retail investors demonstrated a relatively higher level of interest, subscribing to 35% of their allocated portion, which translates to 11.3 lakh shares. In contrast, non-institutional investors showed minimal engagement, subscribing to only 7% of their category, amounting to 3.48 lakh shares.
Institutional Investors Largely Absent from Bidding
The most striking aspect of the IPO's debut was the near-complete absence of qualified institutional buyers (QIBs). This category, which includes foreign institutional investors, domestic financial institutions, and mutual funds, bid for a mere 224 shares out of the 97.10 lakh shares reserved for them. This negligible participation signals a lack of confidence or strategic hesitation among large-scale investors.
Additionally, shares reserved for employees received bids for 13% of their allocation, equating to 1.1 lakh shares, indicating modest internal support.
IPO Details and Closing Timeline
The price band for Fractal Analytics' Rs 2,834 crore IPO has been set at Rs 857 to Rs 900 per share. The subscription window is scheduled to close on Wednesday, giving potential investors a limited timeframe to reconsider their positions. The company's performance in the coming days will be closely monitored to see if it can overcome this sluggish start and attract more substantial investment.
This muted response may reflect broader market trends or specific concerns about the analytics and AI sector, emphasizing the need for companies to clearly communicate their value proposition to investors in a competitive landscape.
