Fractal Analytics, one of the leading artificial intelligence (AI) and analytics firms, received the market capitalization SEBI’s nod to raise ₹4,900 crore via an initial public offering (IPO).
On November 18, the SEBI approved Fractal Analytics’ draft papers, meaning the company can now launch its IPO anytime in the next year.
This IPO consists of a fresh issue of ₹1,279.3 crore and an Offer-for-Sale of up to ₹3,620.7 crore by existing investors Quinag Bidco, TPG Fett Holdings, and GLM Family Trust.
In August, Fractal Analytics filed its Draft paper, and according to the papers, TPG Fett Holdings is the biggest shareholder in Fractal with a 25.67% stake, GLM Family Trust with 15.7%, and Apax Partners’ Quinag Bidco with 18.78%.
According to the report, the company might launch its IPO next month or early 2026 in India with keeping a valuation of about $3 billion in mind.
The company may also consider raising ₹255.8 crore in a pre-IPO round. If they successfully raised the funds in a pre-IPO placement. The amount of ₹255.8 crore will be reduced from the fresh issue.
Founded in March 2000, Fractal Business has been divided into 2 main parts: Fractal.ai, which offers AI services and products through its platform Cogentiq, and Fractal Alpha, which includes independent AI businesses to drive innovation across various industries. Fractal is India’s top AI company and has also worked with big global brands like Citi, Costco, Mars, Nestle, and Philips.
The proceeds of ₹264.9 crore of the fresh issue will be utilized towards the repayment/prepayment of borrowings of subsidiary Fractal USA. A portion of ₹57.1 crore will be used for the purchase of laptops, ₹121.1 crore for building new office premises in India, and ₹355.1 crore for R&D and sales & marketing. Lastly, the remaining funds will be used for the company’s general corporate purposes.
In FY25, the company generated a profit of ₹223 crore, while in the previous year, there was a loss of ₹49.9 crore, making a big improvement. The company also reported a revenue of ₹2,765.4 crore in FY25, showcasing a growth in revenue by 25.9% over the last year.
Kotak Mahindra Capital Company, Morgan Stanley India Company, Axis Capital, and Goldman Sachs (India) Securities are the book-running lead managers to the issue.
Fractal Analytics IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Fractal Analytics Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2023 | ₹2,043.70 | ₹2,225.20 | ₹194.40 |
| 2024 | ₹2,241.90 | ₹2,250.60 | ₹54.70 |
| 2025 | ₹2,816.20 | ₹2,575.50 | ₹220.60 |
Fractal Analytics IPO Valuation – FY2025
Fractal Analytics IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹14.49 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 12.6% |
| Net Asset Value (NAV): | ₹104 |
Peer Group Comparison
There are no listed companies in India or globally.
Objects of the Issue
- Investment in one of our Subsidiaries, Fractal USA, for pre-payment and/ or scheduled repayment, in full or in part, of its borrowings;
- Purchase of laptops;
- Setting-up new office premises in India;
- Investment in (a) research and development; and (b) sales and marketing under Fractal Alpha; and
- Funding inorganic growth through unidentified acquisitions and other strategic initiatives, and general corporate purposes
IPO Lead Managers aka Merchant Bankers
- Kotak Mahindra Capital Company Limited
- Morgan Stanley India Company Private Limited
- Axis Capital Limited
- Goldman Sachs (India) Securities Private Limited
