Fractal Analytics IPO: AI Firm Raises ₹1,248 Crore from Anchor Investors

Introduction to Fractal Analytics IPO

Artificial intelligence and analytics solutions provider Fractal Analytics Limited has successfully raised ₹1,248.26 crore from anchor investors on Friday, February 6, 2026, just days before its initial public offering (IPO) opens for public subscription. The company's maiden public issue, valued at nearly ₹2,834 crore, is set to open on February 9 and will conclude on February 11. This strong start in the anchor round indicates significant institutional interest in the pure-play AI firm.

Strong Demand in Anchor Investor Round

Fractal Analytics announced the allocation of 1,38,69,499 equity shares to a total of 52 anchor investors. The shares were allotted at the upper end of the price band, ₹900 per equity share. The anchor book witnessed broad-based participation from a mix of prominent domestic and global institutional investors, reflecting robust demand for the issue.

Domestic institutional investors were well-represented, with participation from mutual funds such as SBI Mutual Fund, ICICI Prudential Mutual Fund, Motilal Oswal Mutual Fund, and UTI Mutual Fund. Major insurance companies, including Life Insurance Corporation of India (LIC), HDFC Life Insurance Company, and SBI Life Insurance Company, also invested. Of the total allocation, approximately 38%, or 52,77,680 shares, were allotted to 11 domestic mutual funds through 22 different schemes.

Global investor interest was equally strong. Marquee names like Morgan Stanley Investment Funds, Ashoka WhiteOak Emerging Markets Funds, Jupiter Global Fund, Goldman Sachs Bank Europe, and Societe Generale participated in the anchor round, signaling strong international confidence in Fractal's business model and growth prospects.

Key IPO Details and Structure

The total IPO size is ₹2,833.9 crore. It comprises a fresh issue of equity shares worth up to ₹1,023.5 crore and an Offer For Sale (OFS) component where existing shareholders will offload shares worth ₹1,810.4 crore. The company has fixed the price band at ₹857 to ₹900 per share. At the upper end of this band, the company is valued at approximately ₹15,500 crore.

Utilization of IPO Proceeds

Fractal Analytics plans to utilize the net proceeds from the fresh issue for several strategic objectives. A significant portion will be used to invest in its subsidiary, Fractal USA, to prepay or repay its outstanding debts. The funds will also be allocated for purchasing laptops, setting up new office premises in India, and investing in research and development. Additionally, the company intends to support sales and marketing activities under its Fractal Alpha division, fund potential acquisitions, and address general corporate purposes.

Company Profile and Business Operations

Co-founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal Analytics is a leading pure-play data and artificial intelligence company. It provides end-to-end AI solutions, helping large global enterprises make data-driven decisions. The company has deep domain expertise across various sectors, including consumer packaged goods, retail, technology, media, telecom, healthcare, life sciences, and financial services. Backed by marquee investors like TPG, Apax, and Gaja, Fractal serves a global clientele that includes major corporations such as Microsoft, Apple, Nvidia, Alphabet, and Amazon.

Offer For Sale Participants

The OFS component involves the sale of shares by existing shareholders. The list of selling shareholders includes Quinag Bidco Ltd, TPG Fett Holdings Pte. Ltd, Satya Kumari Remala, Rao Venkateswara Remala, and GLM Family Trust.

Market Sentiment and Grey Market Premium (GMP)

As of the evening of February 6, 2026, the Grey Market Premium (GMP) for the Fractal Analytics IPO stood at ₹61 per share. Based on the upper price band of ₹900, this suggests a potential listing price of ₹961 per share, a premium of 6.78%. It is important for investors to note that GMP is an unofficial indicator and can change rapidly based on market sentiment.

Lead Managers for the Issue

The IPO is being managed by a consortium of leading investment banks. Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited, and Goldman Sachs (India) Securities Private Limited are the Book Running Lead Managers for the offer.

Conclusion

The successful mobilization of ₹1,248.26 crore from a diverse group of anchor investors provides a strong foundation for the Fractal Analytics IPO. With the public issue opening on February 9, all eyes will be on the subscription numbers as the AI firm prepares for its stock market debut on February 16, 2026.