Fractal Analytics, a globally recognised enterprise AI company, has filed its draft paper (DRHP) with the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO).
The IPO consists of a fresh issue of equity shares aggregating up to Rs 1,279.3 crore and an offer for sale totalling Rs 3,620.7 crore.
The offer for sale includes equity shares with a face value of Rs 1 each, distributed among several stakeholders. Quinag Bidco Ltd is set to offload shares worth Rs 1,462.6 crores, TPG Fett Holdings Pte. Ltd will sell shares amounting to Rs 1,999.6 crores, and other shareholders will contribute the remainder.
Fractal Analytics intends to use the net proceeds from the fresh issue to invest in its subsidiary, Fractal USA, for pre-payment or scheduled repayment of borrowings, and for setting up new offices in India. Additionally, the funds will support research and development, marketing under Fractal Alpha, and potential acquisitions and strategic initiatives.
Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal Analytics provides data-driven insights and AI solutions to global enterprises across various sectors. The company has seen significant growth, with revenue from operations increasing by 25.9% to Rs 2,765 crores in FY25 from Rs 2,196 crores in FY24. Its profit after tax saw a turnaround, reaching Rs 220.6 crore in FY25 compared to a loss of Rs 54.7 crore in FY24.
Fractal Analytics is backed by notable investors such as TPG, Apax, and Gaja Capital. The company boasts expertise in sectors including consumer packaged goods, retail, technology, healthcare, and financial services. It is focused on expanding its AI and Gen AI software portfolios, as indicated by its active investments in these areas.
The IPO is structured through a book-building process, where 75% of the net offer will be available to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 10% to Retail Individual Investors (RIIs). Additionally, there is an “Employee Reservation Portion” not exceeding 5% of the post-offer paid-up equity share capital.
Kotak Mahindra Capital Company, Morgan Stanley India Company, Axis Capital, and Goldman Sachs (India) Securities are the Book Running Lead Managers for the IPO. The company may consider a pre-IPO placement of up to Rs 255.8 crores before filing the Red Herring Prospectus with the Registrar of Companies.
Fractal has earned a reputation for serving major corporations such as Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla. The company’s strategy involves leveraging its domain expertise to support decision-making processes for large global clients.
Fractal Analytics distinguishes itself among industry players through its comprehensive AI solutions and substantial R&D investments. The company’s trajectory in the tech space is expected to enhance its competitive edge as it continues to expand its offerings and market reach.