AI solutions provider Fractal Analytics has raised ₹1,248 crore from anchor investors ahead of the opening of its initial public offering, as disclosed in a regulatory filing. Importantly, the anchor round signals strong institutional confidence ahead of the company’s market debut.
According to official disclosures, the Bengaluru-based company allotted 1.38 crore equity shares to anchor investors at ₹900 per share, which represents the upper end of the IPO’s price band. Meanwhile, the anchor book attracted a balanced mix of prominent domestic mutual funds and leading global institutional investors.
Among domestic participants, SBI Small Cap Fund and Life Insurance Corporation of India emerged as two of the largest investors in the anchor book. At the same time, marquee global institutions such as Morgan Stanley, Goldman Sachs, Amundi, Kuwait Investment Authority, and Allspring Global took meaningful positions, underscoring confidence in Fractal’s long-term growth prospects.
The company has fixed the price band for the public issue at ₹857–900 per share, which values Fractal at approximately $1.6 billion at the upper end. Furthermore, the IPO is scheduled to open on February 9 and close on February 11.
According to the red herring prospectus (RHP), Fractal has reduced the size of its public issue by 42% to ₹2,834 crore from the ₹4,900 crore IPO outlined in its draft red herring prospectus (DRHP) last year. As a result, the revised structure reflects a more calibrated capital-raising strategy.
The updated IPO will consist of a fresh issue of shares worth ₹1,023.5 crore along with an offer for sale (OFS) of ₹1,810.4 crore by existing shareholders. Notably, the company will deploy proceeds from the fresh issue to support inorganic growth, invest in subsidiaries, meet working capital needs, and address general corporate requirements. “Out of the total allocation of 1.38 crore equity shares, 52.77 lakh shares were allocated to 11 domestic mutual funds, including ICICI Prudential AMC, Motilal Oswal AMC, UTI AMC, Trust MF, Baroda BNP Paribas MF, Bandhan MF, Invesco India, Sundaram MF, Abakkus, and Union MF,” Fractal Analytics said.
Founded in 2000, Fractal delivers artificial intelligence and advanced analytics solutions to global enterprises across sectors such as consumer goods, retail, healthcare, technology, and financial services. Additionally, the company generates a majority of its revenue from overseas markets, with the United States contributing a significant share.
On the financial front, Fractal reported consolidated revenue of ₹2,765 crore in FY25, up from ₹2,196 crore in FY24. More importantly, the company recorded a net profit of ₹220.6 crore in FY25, compared with a net loss of ₹54.7 crore in FY24. For the first half of FY26, Fractal posted revenue of ₹1,559 crore and a profit of ₹71 crore, reflecting continued operational momentum.
Noting that the company could have raised capital at a higher valuation in private markets, Fractal Analytics cofounder and group CEO Srikanth Velamakanni said public market investors often evaluate AI companies differently from specialised private investors, who take a more thematic view and spend more time understanding the category.
As the company prepares to enter the public markets with a streamlined issue size and improving financial performance, the IPO positions Fractal as one of the notable AI and analytics listings in India’s capital markets.
