AI firm Fractal Analytics mops up ₹1,248 crore in anchor round; IPO opens February 9

Artificial intelligence (AI) solutions provider Fractal Analytics on Friday garnered ₹1,248.26 crore from anchor investors, days before the opening of its initial public offering (IPO).

The anchor book saw broad-based participation from a mix of leading domestic and global institutional investors, reflecting robust demand for the issue.

According to a circular uploaded on the website of BSE, domestic institutional investors participating in the anchor round included mutual funds SBI MF, ICICI Prudential MF, Motilal Oswal MF and UTI MF, and insurance companies LIC, HDFC Life Insurance Company, SBI Life Insurance Company and Bharti AXA Life Insurance Company.

Global investor interest was equally strong, with participation from long-only and institutional investors such as Morgan Stanley Investment Funds, Ashoka WhiteOak Emerging Markets Funds, Jupiter Global Fund, Goldman Sachs Bank Europe, Societe Generale (ODI) and Flumen Investment Trust.

As per the circular, Fractal Analytics allotted 1.39 crore equity shares to 52 anchor investors at ₹900 per share.

The company’s ₹2,834-crore maiden public offering will open for subscription on February 9 and conclude on February 11. The price band has been fixed at ₹857 to ₹900 per share, valuing the company at nearly ₹15,500 crore.

Fractal has scaled down the size of its IPO from the ₹4,900 crore it had initially proposed.

The revised offer comprises a fresh issue of equity shares worth up to ₹1,023.5 crore and an offer for sale (OFS) of ₹1,810.4 crore, taking the total issue size to ₹2,833.9 crore.

In its draft papers filed in August, the company had planned to raise ₹4,900 crore through the public issue.

Those selling shares in the OFS include Quinag Bidco Ltd, TPG Fett Holdings Pte. Ltd, Satya Kumari Remala Rao, Venkateswara Remala and GLM Family Trust.

Fractal plans to use the proceeds from fresh issue to invest in its subsidiary, Fractal USA, for pre-payment or repayment of its borrowings; buy laptops; set up new offices in India; invest in research and development; support sales and marketing under Fractal Alpha; fund acquisitions and other strategic initiatives; and for general corporate purposes.

The company will make its stock market debut on February 16.

According to the company, 75% of the issue size has been reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 10% for retail investors.

Fractal, which was co-founded by Srikanth Velamakanni and Pranay Agrawal in 2000, supports large global enterprises across multiple industry verticals and business functions with data-driven insights and assists in decision-making through end-to-end AI solutions.

Backed by marquee investors like TPG, Apax, Gaja, Fractal is a leading pure play data and artificial intelligence company and has domain expertise spanning across consumer-packaged goods & retail; technology, media and telecom; healthcare and life sciences and banking, financial services and insurance.

As per its industry report, it is uniquely placed among other industry players with active investments in expanding its AI and Gen AI software portfolio and R&D activities.

Also Read | Fractal Analytics IPO - All you need to know about the ₹2,834 crore issue

As on March 31, 2025, the firm served global companies which include Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Axis Capital and Goldman Sachs (India) Securities have been appointed by Fractal to manage its maiden public issue.