One of the leading Artificial Intelligence solutions providers, Fractal Analytics, has submitted its draft papers to SEBI, intending to raise funds of ₹4900 crore via Initial Public Offering (IPO).
As per the draft papers filed on August 12, this IPO comprises of fresh issue of ₹1,279.3 crore and an Offer-for-Sale up to ₹3620.7 crore by Quinag Bidco (Apax Partners), TPG Fett Holdings (TPG Group), and GLM Family Trust.
In the Offer-for-Sale component, Satya Kumari Remala and Rao Venkateswara Remala will be offloading their shareholdership.
Before filing the RHP, the company may plan to raise funds of ₹255.8 crore in the pre-IPO placement. If they successfully plan to do so, the amount of ₹255.8 crore will be reduced from the fresh issue.
Out of the fresh issue, the company will use ₹264.9 crore to repay debt of its subsidiary Fractal USA, ₹57.1 crore to buy laptops, ₹121.1 crore to set up new offices in India, and ₹355.1 crore for R&D and sales and marketing. The remaining funds will be used for the company’s general corporate purposes.
Incorporated in 2000, Fractal Analytics is one of the leading companies that offers AI solutions under 2 categories Fractal.ai and Fractal Alpha. The company works with top clients spanning industries like retail, technology, healthcare, and banking. Some key clients are Citibank, Costco, Franklin Templeton, Mars, Mondelez, Nationwide, Nestle, and Philips.
At the time of the DRHP filing, promoters held 18.29% of the company, while the remaining 81.71% was with public shareholders, TPG (25.67%), Quinag Bidco (18.78%), and GLM Family Trust (Gulu Lalchand Mirchandani) with 15.7%.
The book-running lead managers to the issue are Kotak Mahindra Capital Company, Morgan Stanley India Company, Axis Capital, and Goldman Sachs (India) Securities.
In FY25, the company reported a revenue of ₹2765.4 crore. If compared to last year, it was ₹2196.5 crore, showcasing a rise in revenue by 25.9%. In FY25, the company also reported a profit of ₹220.6 crore, respectively.
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 which operate in a similar business model as their.
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
