At the upper band of Rs 216, the IPO is commanding a pre-issue market cap of around Rs 169.5 crore. Shares are proposed to be listed on the BSE SME platform on February 23. The IPO is entirely a fresh issue of 22.68 lakh shares aggregating to Rs 49 crore. The company has already raised Rs 13.93 crore from anchor investors ahead of the public offering.
Investors can bid for a minimum of 1,200 shares, translating into an investment of Rs 2,59,200 at the upper price band. For high net-worth individuals (HNIs), the minimum application size is 1,800 shares, amounting to Rs 3,88,800.
The issue allocation includes 47.4% for qualified institutional buyers (QIBs), 14.3% for non-institutional investors (NIIs), and 33.3% for retail investors. A total of 5% of the issue has been reserved for the market maker.
Business overview
Fractal Industries is a full-service garment manufacturing and supply chain company focused on e-commerce platforms. It designs, sources and manufactures apparel and provides warehousing and logistics support to marketplaces such as Myntra, Ajio and Flipkart.
The company operates through three models: bulk garment sales to platforms, a pure-play marketplace (PPMP) model where it manufactures under marketplace-owned brands, and direct sales under its own label “7ate9”, launched in May 2025.
It operates a manufacturing facility in Mumbai with a monthly capacity of over 3 lakh garments and has warehousing presence across Gujarat, Maharashtra, Haryana, West Bengal and Karnataka. Also Read | PPFAS to launch 2 new passive GIFT City based outbound funds on February 23. Check key details
Financial performance
For the year ended March 2025, Fractal Industries reported total income of Rs 85.51 crore and profit after tax of Rs 7.54 crore. EBITDA stood at Rs 11.15 crore, translating into an EBITDA margin of 13.04%. PAT margin was 8.82%.
For the six months ended September 2025, the company reported revenue of Rs 47.33 crore and profit after tax of Rs 6.78 crore, indicating improving profitability. EBITDA margin expanded to 19.63% in the latest period, while PAT margin improved to 14.34%.
Use of proceeds
The company plans to utilise the net proceeds primarily towards funding working capital requirements, with the balance earmarked for general corporate purposes.
Given the modest grey market premium of 2%, listing gains expectations appear limited at present. However, investors will closely watch subscription trends over the three-day bidding period to gauge broader market appetite, especially in the SME segment where volatility has remained elevated in recent months.
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