Fractal Analytics gets Sebi nod for ₹4,900 crore IPO; check key details

Fractal Analytics aims to raise ₹4,900 crore through its maiden public issue, comprising a fresh issue of ₹1,279.3 crore and an offer for sale of ₹3,620.7 crore

Fractal Analytics IPO: Fractal Analytics, a globally recognised enterprise artificial intelligence (AI) company, has received approval from the Securities and Exchange Board of India (Sebi) to proceed with an initial public offering (IPO), according to a filing with the markets regulator.

 

The company aims to raise ₹4,900 crore through its maiden public issue. The mainline offering comprises a fresh issue of ₹1,279.3 crore and an offer for sale (OFS) of ₹3,620.7 crore. Under the OFS, the selling shareholders are Quinag Bidco, TPG Fett Holdings, Satya Kumari Remala, Rao Venkateswara Remala, and GLM Family Trust. 

 

According to the draft red herring prospectus (DRHP), the company has reserved at least 75 per cent of the issue for qualified institutional buyers (QIBs), not more than 10 per cent for retail investors and not more than 15 per cent for non-institutional investors (NIIs).

 

Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal Analytics provides large global enterprises with data-driven insights, assisting them in informed decision-making through its end-to-end AI solutions. As of March 31, 2025, the company's full suite of AI solutions is organised under two segments, including Fractal.ai (comprising AI services and AI products primarily hosted on Cogentiq) and Fractal Alpha (comprising AI businesses). In FY25, Fractal served 113 MWCs, including Citibank, Costco, Franklin Templeton, Mars, Mondelez, Nationwide, Nestle, Philips, among others.  ALSO READ | Sudeep Pharma IPO closes today; subscription up 9x, NIIs lead

Here are the key details of Fractal Analytics IPO:

Fractal Analytics IPO objective

According to the DRHP, the company proposes to utilise ₹264.9 crore from the net fresh issue proceeds for repayment of debt availed by one of its subsidiaries, Fractal USA. Additionally, ₹57.1 crore will be used for the purchase of laptops, ₹121.1 crore for setting up new office premises in India, and ₹355.1 crore for investment in research and development, and sales and marketing under Fractal Alpha. The remaining funds will be used for funding inorganic growth through unidentified acquisitions and other strategic initiatives, and general corporate purposes.

Fractal Analytics IPO registrar, lead manager

MUFG Intime India is the registrar of the issue. Kotak Mahindra Capital Company and Axis Capital are the book-running lead managers. 

Fractal Analytics financial overview

In FY25, the company posted a revenue from operations of ₹2,765.4 crore, up 25.9 per cent compared to ₹2,196.3 crore in the previous financial year (FY24). The company’s adjusted profit after tax (PAT) stood at ₹347.8 crore, against a loss of ₹4.5 crore in the FY24. Its adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) increased to ₹398 crore from 9.2 crore in the year-ago period. Ebitda margins expanded from 4.4 per cent to 14.4 per cent.