Fractal Raises Rs 1,248 Cr From Anchor Investors Ahead of IPO
•February 6, 2026
0
Companies Mentioned
Why It Matters
The strong anchor book and reduced IPO size signal robust investor appetite for Indian AI leaders, positioning Fractal for strategic expansion and setting a precedent for high‑valuation tech listings in India.
Key Takeaways
- •Raised Rs 1,248 cr at top of price band
- •IPO size cut 42% to Rs 2,834 cr
- •Valuation peaks at $1.6 bn
- •Anchor investors include SBI, LIC, Morgan Stanley, Goldman Sachs
- •FY25 profit turnaround to Rs 220.6 cr
Pulse Analysis
Fractal Analytics has become a flagship Indian AI‑driven analytics firm, serving Fortune‑500 clients across consumer goods, healthcare, and financial services. Its heavy reliance on U.S. contracts mirrors the broader trend of Indian tech firms exporting high‑margin software services. The recent anchor book, anchored by domestic powerhouses such as SBI Small‑Cap Fund and LIC alongside global banks like Morgan Stanley and Goldman Sachs, signals strong confidence in Fractal’s ability to scale AI solutions worldwide. Investors are betting on the company’s proprietary data platforms and its expanding portfolio of machine‑learning products to capture a growing enterprise demand for predictive insights.
The IPO has been trimmed by 42%, now targeting Rs 2,834 cr, with a fresh issue of Rs 1,023.5 cr and an offer‑for‑sale of Rs 1,810.4 cr. Pricing the shares at the top of the Rs 857‑900 band values Fractal at roughly $1.6 bn, a premium that reflects both its revenue growth and the scarcity of large‑cap AI listings in India. Proceeds earmarked for inorganic expansion and subsidiary investments will likely fund strategic acquisitions in niche AI verticals, bolstering the firm’s product breadth and accelerating its entry into new geographies.
Financially, Fractal posted a dramatic turnaround, with FY25 revenue climbing to Rs 2,765 cr and net profit swinging to Rs 220.6 cr after a loss the previous year. The first half of FY26 continued the momentum, delivering Rs 1,559 cr in revenue and Rs 71 cr profit. This profitability trajectory not only validates the company’s pricing power but also enhances its appeal to institutional investors seeking exposure to AI‑driven growth without the volatility of early‑stage startups. As the Indian market awaits more tech IPOs, Fractal’s successful anchor placement could set a benchmark for future high‑valuation listings.
Fractal raises Rs 1,248 Cr from anchor investors ahead of IPO
AI solutions provider Fractal Analytics has raised Rs 1,248 crore from anchor investors ahead of the opening of its initial public offering, according to a regulatory filing.
According to disclosures, the Bengaluru-based company allotted 1.38 crore equity shares to anchor investors at Rs 900 per share, which is the upper end of the IPO’s price band. The anchor book saw participation from a mix of leading domestic mutual funds and global institutional investors.
SBI Small Cap Fund and Life Insurance Corporation of India emerged as among the largest domestic participants in the anchor book, with marquee global institutions such as Morgan Stanley, Goldman Sachs, Amundi, Kuwait Investment Authority and Allspring Global also taking significant positions, indicating confidence in Fractal’s long-term growth trajectory.
The price band for the issue has been fixed at Rs 857–900 per share, valuing Fractal at around $1.6 billion at the upper end. The issue is scheduled to open on February 9 and close on February 11.
According to the RHP, Fractal’s public issue has been reduced by 42% to Rs 2,834 crore, from the Rs 4,900 crore IPO outlined in its draft red herring prospectus (DRHP) last year.
The revised IPO will comprise a fresh issue of shares worth Rs 1,023.5 crore and an offer for sale (OFS) of Rs 1,810.4 crore by existing shareholders. Proceeds from the fresh issue will be used to fund inorganic growth, invest in subsidiaries, meet working capital requirements, and for general corporate purposes.
Founded in 2000, Fractal provides artificial intelligence and advanced analytics solutions to global enterprises across sectors such as consumer goods, retail, healthcare, technology and financial services. The company derives a majority of its revenue from overseas markets, particularly the US.
On the financial side, Fractal reported consolidated revenue of Rs 2,765 crore in FY25 from Rs 2,196 crore in FY24. Its net profit stood at Rs 220.6 crore in FY25, compared to a loss of Rs 54.7 crore in FY24. For the first half of FY26, it recorded revenue of Rs 1,559 crore and a profit of Rs 71 crore.
0
Comments
Want to join the conversation?
Loading comments...