India's first pure-play AI firm lists below IPO price
What's the story
Fractal Analytics has made a weak debut on the stock market. The company's shares were listed at ₹876 apiece on the National Stock Exchange(NSE), translating to a discount of 2.67% from its initial public offer (IPO) price. The issue was subscribed 2.66 times in the primary market between February 9-11.
Market standing
Market cap at ₹15,476 crore
Post-listing, Fractal Analytics's shares were flat on the Bombay Stock Exchange (BSE), giving the company a market capitalization of ₹15,476.86 crore. In the unofficial market, its shares were trading at a flat gray market premium. The issue had previously attracted ₹1,248.26 crore from anchor investors before its public debut.
Expert advice
Expert views on Fractal Analytics
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, advised investors to take a balanced and strategy-based approach after listing. She said that short-term investors looking for listing gains may consider partial profit booking if the stock lists at a premium. This is because high valuations and AI-sector sentiment could lead to initial volatility. However, long-term investors could hold onto the stock given Fractal's presence in a high-growth global AI and analytics market.
Fund allocation
Fresh issue proceeds to be utilized for strategic initiatives
Fractal Analytics plans to use the fresh issue proceeds for various strategic initiatives. These include investing in its subsidiary, Fractal USA, repaying debt, purchasing laptops, setting up new offices in India, and investing in research and development. The company also intends to use the funds to support sales and marketing under Fractal Alpha as well as fund acquisitions among other corporate purposes.