News

Global enterprise AI and analytics firm Fractal Analytics launched an initial public offer (IPO) on Monday to raise up to Rs 2,834 crore through a mix of fresh equity and an offer for sale (OFS). Under the IPO, potential investors will be able to bid for shares in a range of Rs 857-900 apiece in lots of 16 units.

Subscription update

At 1:24 pm on Monday, the first day of the bidding process, the IPO stood at an overall subscription of 6 per cent, with bids for 11.13 lakh shares versus the total 1.86 crore shares on offer, according to provisional exchange data.

This marks the first mainboard IPO in more than two weeks.

Here are 10 key things to know about Fractal Analytics:

Price band & lot size: Fractal Analytics shares will be available for bidding between 10 am and 5 pm for three trading days, from Monday to Wednesday, February 11.

The price band of Rs 857-900 translates to Rs 13,712-14,400 per lot. In other words, bidders will have to shell out a sum of up to Rs 14,400 at a time to participate in the offer.

Fresh equity: The IPO includes fresh equity worth up to Rs 1,023.5 crore. Promoters and existing shareholders will be offloading up to 2.01 crore shares in the public offer, which translates to about Rs 1,810 crore at the upper end of the price band.

Important dates: The allotment is set to be finalised tentatively on February 12, with a listing tentatively on February 16.

Company profile: As a global enterprise AI and analytics firm,Fractal crafts AI solutions by blending its deep technical know-how with domain and functional expertise. Its offerings are classified into two key segments: Fractal.ai (AI services and products) and Fractal Alpha (standalone AI businesses).

Financials: Here's a summary of the company's annual financial performance from FY23 to FY25:

FY25

FY24

FY23

Revenue

2,765

2,196

1,985

EBITDA

398

97.2

436.8

EBITDA Margin (%)

14.4%

4.4%

22.0%

PAT

220.6

-54.7

194.4

Revenue, EBITDA and PAT numbers in crore rupees

Revenue mix:

Here's a breakup of the company's revenue sources, based on its FY25 earnings:

Peer comparison:

No listed companies operate on a business model similar as Fractal's.

Key strengths:

Key weaknesses:

Anchor investors:

Prior to the IPO, Fractal Analytics raised a sum of Rs 1,248 crore from anchor investors, including SBI Mutual Fund, Motilal Oswal Mutual Fund, LIC, HDFC Life Insurance, SBI Life Insurance, Goldman Sachs and Morgan Stanley.