Fractal Analytics launches ₹2,800cr IPO: Should you apply
What's the story
Fractal Analytics, India's first pure-play artificial intelligence (AI) company, has launched its initial public offering (IPO) today. The IPO is priced between ₹857 and ₹900 per share, with a total issue size of ₹2,834 crore. Investors can bid for a minimum of 16 equity shares of face value ₹1 each and in multiples thereof.
Offer details
Fresh issue worth ₹1,023.5 crore
The IPO consists of a fresh issue worth ₹1,023.5 crore and an offer for sale (OFS) of ₹1,810.4 crore. In the OFS, Quinag Bidco Ltd managed by Apax Partners will offload shares worth ₹880.9 crore while TPG Fett Holdings and GLM Family Trust will each sell shares worth ₹450 crore. The company's earlier target was to raise ₹4,900 crore through the IPO but has now revised it to ₹2,834 crore.
Fund utilization
35% of capital to be utilized for R&D
About 35% of the capital raised from this IPO will be used for AI revenue, research and development (R&D), and alpha-related investments. The rest will be utilized for loan repayment and some basic capital expenditure (capex). Ahead of its proposed IPO, Fractal Analytics has raised ₹1,248.26 crore from anchor investors by allotting 1.387 crore shares at the upper end of the price band of ₹900 per share.
Investor interest
Participation from 52 anchor investors
The anchor book of Fractal Analytics's IPO witnessed participation from 52 investors, indicating strong demand from domestic and global institutions. Out of the total shares allotted, some 52.8 lakh shares or 38.05% were allocated to 11 domestic mutual funds across 22 schemes. Insurance companies such as Life Insurance Corporation of India (LIC), HDFC Life Insurance, and SBI Life Insurance also participated in this round.
Company profile
About Fractal Analytics
Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal Analytics provides data-driven insights to large global enterprises across various industry verticals. The company supports decision-making through end-to-end AI solutions. It is backed by marquee investors such as TPG, Apax, and Gaja. Fractal is a leading pure-play data and artificial intelligence company with domain expertise spanning consumer packaged goods & retail; technology media telecom; healthcare life sciences; and banking financial services insurance sectors.