Book-building for Fractal's ₹4,900cr IPO begins next week
What's the story
Fractal Analytics Ltd, India's first artificial intelligence (AI) unicorn, is gearing up to start the book-building process for its ₹4,900 crore initial public offering (IPO) as early as next week. The company got regulatory nod to launch its IPO in November and is expected to file updated draft papers by mid-January 2026. Fractal has been meeting potential investors globally and locally and has secured investment commitments from several of them.
Process
Understanding the book-building process
The book-building process is a method where merchant bankers decide a price band within which investors can bid for shares in an IPO. The final price is determined after the bidding process. This method will also help Fractal determine its pre-IPO placement. The company is considering allotting shares worth up to ₹256 crore to institutional investors ahead of the main offering, which could reduce the fresh issue size if completed.
Offer details
Fractal's IPO structure and major stakeholders
Fractal's IPO consists of fresh shares worth up to ₹1,279 crore and an offer-for-sale (OFS) of up to ₹3,621 crore. TPG Capital has proposed to sell stocks worth nearly ₹2,000 crore, while British private equity firm Apax Partners will offload shares worth another ₹1,462 crore. Other selling shareholders in the OFS include Satya Kumari Remala, Rao Venkateswara Remala and GLM Family Trust.
Financial overview
Financial history and market position
Over the last three years, Fractal has raised ₹75.2 crore mainly through equity issuance via employee stock ownership plans (ESOPs). Ahead of the Draft Red Herring Prospectus (DRHP) filing, Apax sold 1,541 stocks to Janaki Akella, an independent director at the company, for ₹5,550 apiece. A bonus issue of four shares for every one share held subsequently adjusted every share price to ₹1,110.