AI Firm Fractal Analytics’ ₹49 Billion IPO Set To Test India’s Tech Valuation Appetite
Synopsis
The IPO comprises a fresh issue of shares worth ₹12.79 billion and an offer for sale of shares worth ₹36.21 billion.
Artificial Intelligence company Fractal Analytics has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
Backed by global clients such as Nvidia, Microsoft, Apple, Tesla, among others, the Mumbai-headquartered firm is looking to tap the rising investor interest in AI-led businesses.
According to the DRHP, Fractal Analytics aims to raise around ₹49 billion from the IPO, comprising a fresh issue of shares worth ₹12.79 billion and an offer for sale (OFS) of shares worth ₹36.21 billion.
Founded in 2000, Fractal Analytics provides AI-driven analytics and decision-support solutions to major global enterprises and has operations in the US as well as India.
Reports show that Fractal is a profitable business. It reported ₹2,765 crore revenues in FY25 and profit of ₹22 crore.
IPO Details
The OFS will include stakes sold by Quinag Bidco (₹14.63 billion), TPG Fett Holdings Pte (around ₹20 billion), Satya Kumari Remala and Rao Venkateswara Remala (₹295 million), and GLM Family Trust (₹1.29 billion).
The IPO shares will have a face value of ₹1 apiece. They will be offered via the book-building process, with 75% allocated to qualified institutional buyers, 15% to non-institutional investors, and 10% to retail investors. Up to 5% of post-offer equity will be reserved for eligible employees.
Kotak Mahindra Capital, Morgan Stanley India, Axis Capital, and Goldman Sachs (India) are acting as book-running lead managers for the offering.
What Will IPO Funds Be Used For?
Proceeds from the fresh issue will be used to invest in Fractal USA, set up new office space in India, fund R&D, and expand sales and marketing through Fractal Alpha. The funds will also support acquisitions, strategic initiatives, and general corporate purposes.
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