Fractal left Rs 607.8 crore of IPO proceeds unutilised

Fractal Analytics Limited had used Rs 351.5 crore of Rs 959.3 crore in net initial public offer (IPO) proceeds by September 30, 2026, leaving Rs 607.8 crore unutilised, as its disclosure showed no spending on new India offices or the acquisition and general-corporate-purpose allocation.

How much of Fractal’s IPO money had been used?

Fractal had used Rs 351.5 crore of its Rs 959.3 crore net IPO proceeds by September 30, 2026, leaving Rs 607.8 crore available for the stated objects. The utilisation table was included in Fractal’s unaudited consolidated financial results approved by its board on November 3, 2026.

The spending was concentrated in three of the five objects specified in the prospectus. Fractal used Rs 264.9 crore for an investment in subsidiary Fractal USA for pre-payment or scheduled repayment of borrowings, Rs 71.1 crore for Fractal Alpha research and development, sales and marketing, and Rs 15.5 crore for laptop purchases.

Fractal’s Rs 607.8 crore balance was larger than the Rs 351.5 crore already deployed at the reporting date. The source does not provide a proposed timetable for spending the remaining amount, nor does it state when the India-office or acquisition and corporate-purpose allocations will be used.

Which IPO objects had Fractal funded by September 2026?

Fractal had fully used the Rs 264.9 crore allocated to Fractal USA’s borrowing-related funding by September 30, 2026. This was the only object with utilisation equal to its full prospectus allocation, and it represented the largest component of the Rs 351.5 crore total deployment.

Fractal used Rs 71.1 crore from the Rs 355.1 crore assigned to research and development and sales and marketing under Fractal Alpha. The Rs 284 crore remaining under that object was the largest single unutilised allocation among the five disclosed uses.

Laptop purchases accounted for Rs 15.5 crore of spending against a Rs 57.1 crore allocation, leaving Rs 41.6 crore unutilised. Fractal’s disclosure does not provide a breakdown of the Rs 71.1 crore Fractal Alpha spending between research and development and sales and marketing, or a breakdown of the remaining laptop budget.

Fractal had not used any of the Rs 121.1 crore allocated to setting up new office premises in India. It had also not used the Rs 161.1 crore reserved for unidentified acquisitions, other strategic initiatives and general corporate purposes, leaving both categories fully unutilised at September 30, 2026.

Why were Fractal’s usable IPO proceeds below its fresh-issue amount?

Fractal’s Rs 959.3 crore pool for utilisation was lower than its Rs 1,023.5 crore fresh issue because the utilisation table reports proceeds net of offer expenses. The difference between the fresh issue and the net amount allocated to prospectus objects was Rs 64.2 crore.

The IPO comprised 3,15,23,948 equity shares with a face value of Rs 1 each, issued at Rs 900 per share during the year ended March 31, 2026. Eligible employees bidding in the reserved portion of 3,83,008 shares received a discount of Rs 85 per share.

Fractal’s IPO included a fresh issue of 1,14,08,394 shares aggregating Rs 1,023.5 crore and an offer for sale of 2,01,15,554 shares aggregating Rs 1,810.4 crore. The IPO-proceeds table tracks the company’s net fresh-issue proceeds rather than the offer-for-sale amount, which was attributable to selling shareholders.

Fractal’s equity shares were listed on the National Stock Exchange of India Limited and BSE Limited on February 16, 2026. The company’s board approved the September 2026 consolidated results on November 3, 2026, and the statutory auditors issued an unmodified review report on those results.

What does Fractal’s disclosure show about future deployment?

Fractal had Rs 566.2 crore unutilised across the India-office, Fractal Alpha, and acquisition and general-corporate-purpose objects at September 30, 2026. That total comprises Rs 121.1 crore for offices, Rs 284 crore for Fractal Alpha investment and Rs 161.1 crore for acquisitions, strategic initiatives and general corporate purposes.

The filing reports a subsequent transaction involving Asper.ai Inc., a step-down subsidiary of Fractal. On November 2, 2026, Asper USA contracted with certain key employees, acquired certain assets and assumed certain liabilities of Swiss company Pricing One SA for aggregate net consideration of Rs 15.2 crore, subject to final calculation and exchange-rate adjustments.

The source does not state that IPO proceeds funded the Pricing One transaction. It also does not identify the source of funding for that transaction or say whether it will be included in the Rs 161.1 crore allocation for acquisitions, strategic initiatives and general corporate purposes in a later utilisation disclosure.

Fractal Alpha’s operating figures provide context for the stated use of its IPO allocation. In the six months ended September 30, 2026, Fractal Alpha reported revenue of Rs 58 crore and a segment loss of Rs 26 crore, while Fractal.ai reported revenue of Rs 1,830.3 crore and segment profit of Rs 319 crore. The source notes that the Fractal Alpha allocation covers research and development and sales and marketing, but does not link individual expenses to the IPO funds.

Conclusion

Fractal had deployed Rs 351.5 crore of Rs 959.3 crore in net IPO proceeds by September 30, 2026, with the Fractal USA borrowing-related allocation fully used. The larger Rs 607.8 crore balance remained available, including the entire India-office and acquisition and general-corporate-purpose allocations and Rs 284 crore earmarked for Fractal Alpha.

The next utilisation update will show whether Fractal begins using the Rs 121.1 crore office allocation, increases spending under the Rs 355.1 crore Fractal Alpha object, or applies the Rs 161.1 crore acquisition and corporate-purpose pool. The disclosed November 2, 2026 Pricing One transaction remains an unresolved item because Fractal did not identify its funding source.