On the first day of bidding, the IPO was subscribed to about 9% of the total 1.85 crore shares on offer. The retail investor portion saw relatively better interest, with 35% of that segment subscribed. The IPO is open for subscription for three days and will close on February 11.
Fractal Analytics IPO GMP today
As of February 10, 2026, Fractal Analytics’ IPO is commanding a Grey Market Premium (GMP) of Rs 8 per share, or about 1%, marking a slight decline from the earlier premium of 1.5%. With the IPO price band fixed at Rs 857 to Rs 900 per share, the implied listing price is estimated to be around Rs 908. The shares are trading at a modest premium in the grey market, suggesting a cautiously positive outlook among investors ahead of the stock’s market debut.
Fractal Analytics IPO subscription status
On the first day of bidding, the Fractal Analytics IPO saw an overall subscription of about 9% against the total 1.85 crore shares on offer, according to data from the BSE. Interest was relatively stronger from Retail Individual Investors (RIIs), who subscribed to 35% of the 32.36 lakh shares reserved for them, indicating early participation from small investors.
Non-Institutional Investors (NIIs) showed limited interest, subscribing to around 7% of their allotted 48.55 lakh shares. Meanwhile, Qualified Institutional Buyers (QIBs) have so far stayed on the sidelines, with no bids received yet for the 97.10 lakh shares earmarked for this category.
Fractal Analytics IPO details
Fractal Analytics’ market debut is being seen as a landmark moment for India’s primary market, as it becomes the first pure-play artificial intelligence company to list on Dalal Street. The Rs 2,834-crore IPO comes at a time when global interest in AI-driven business models remains strong, even as investors closely evaluate technology sector valuations.
The public issue consists of a fresh issue worth Rs 1,023 crore, aimed at funding growth initiatives, along with an offer for sale (OFS) of Rs 1,810 crore by existing shareholders. The IPO is priced in the range of Rs 857 to Rs 900 per share, with investors required to apply for a minimum of 16 shares. At the upper end of the price band, Fractal Analytics’ pre-issue market capitalisation is estimated at approximately Rs 15,474 crore. The company’s shares are scheduled to be listed on both the BSE and NSE on February 16.
Also Read | Quant MF cuts gold, silver exposure near peak levels in multi-asset fund
About the company
Founded in 2000, Fractal Analytics is a global enterprise AI and decision intelligence company serving large corporations across sectors such as consumer goods, technology, healthcare, BFSI and retail. Over the past two decades, the company has developed strong capabilities in data engineering, analytics and artificial intelligence, establishing itself as a long-term partner for enterprises seeking to integrate AI into core decision-making processes.
Fractal operates through two main segments, Fractal.ai, which focuses on AI services and platforms including its Cogentiq agentic AI offering, and Fractal Alpha, which houses product-led and IP-driven AI businesses.
Financial performance
On the financial front, the company recorded a strong turnaround in FY25. Revenue climbed to Rs 2,765 crore, registering nearly 26% year-on-year growth, while profit after tax rebounded sharply to Rs 221 crore, compared with a loss of Rs 55 crore in the previous fiscal year.
EBITDA margins also saw a meaningful improvement, rising to about 14%, driven by operating leverage and better utilisation of delivery teams. Analysts highlight that the return to profitability is a major factor bolstering investor confidence, although the business continues to be sensitive to fluctuations in global technology spending.
Valuations and analysts’ take
At the upper price band of Rs 900, Fractal is valued at a steep multiple compared with traditional IT services companies. According to Swastika Securities, post-issue valuations imply a high earnings multiple, but this also reflects a scarcity premium.
“Fractal is India’s first pure-play AI company to list, positioned as a decision intelligence platform combining AI services with incubated SaaS products. The sharp turnaround in profitability and exposure to the global GenAI cycle justify a premium, though the issue is best suited for high-risk investors with a long-term view,” the brokerage said, assigning a subscribe rating.
Ventura Securities also flagged the company’s diversified revenue profile and improving profitability, while cautioning on execution risks inherent in fast-evolving technology businesses. “Fractal has built scale in enterprise AI with strong client relationships and improving margins. However, dependence on large global clients, significant exposure to the US market and rapid changes in AI regulation remain key risks,” Ventura said, recommending subscription for investors with a medium- to long-term horizon.
Objects of the issue
The funds raised through the fresh issue will be deployed to repay or prepay borrowings of its US subsidiary, strengthen investments in research and development, and scale up sales and marketing efforts under the Fractal Alpha platform. A portion of the proceeds will also be used to establish new office facilities in India and to explore inorganic growth opportunities through acquisitions or strategic investments.
The company has underscored its strategy of deepening engagement with “must-win clients” while accelerating product innovation, positioning these initiatives as key drivers of its future growth.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times.)