Fractal Analytics, the global Artificial Intelligence (AI) solutions provider got an approval from the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). The company aims to raise ₹4,900 crore through the fresh issue as a part of the public offering. It had filed the draft red herring prospectus (DRHP) earlier this year on 14 August for the IPO.

Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal Analytics Ltd is backed by major investors like Backed by marquee investors including TPG, Apax, and Gaja. The promoters of the company are Srikanth Velamakanni, Pranay Agrawal, Chetana Kumar, Narendra Kumar Agrawal and Rupa Krishnan Agrawal.

Fractal Analytics IPO Details

According to the DRHP,

The IPO will comprise a fresh issue of face value of face value of ₹1, each aggregating up to ₹1279.3 crore and an offer for sale (OFS) of face value of ₹1 each aggregating up to ₹3620.7 crore.
Under the OFS, the selling shareholders are Quinag Bidco, TPG Fett Holdings, Satya Kumari Remala, Rao Venkateswara Remala, and GLM Family Trust.
According to the DRHP, the company has reserved at least 75% of the issue for qualified institutional buyers (QIBs), not more than 10% for retail investors and not more than 15% for non-institutional investors (NIIs).
The equity shares are proposed to be listed on the National Stock Exchange (NSE) and BSE, as per the DRHP. The company will determine the price band and minimum bid lot for the IPO in consultation with the book-running lead manager.
Kotak Mahindra Capital Company Limited, Morgan Stanley India, Goldman Sachs India and Axis Capital Limited are the book-running lead managers of the public issue.
MUFG Intime India Private Limited (Formerly Link Intime India Private Limited) will be the registrar for the Fractral Analytics IPO.

Utilisation of Proceeds

The Company proposes to utilise the Net Proceeds from the issue for the following purposes:

Investment in one of the 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.
Funding inorganic growth through unidentified acquisitions and other strategic initiatives, and general corporate purposes.

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About Fractal Analytics Ltd

Fractal Analytics Ltd is a leading enterprise AI and analytics firm founded in 2000. Headquartered in Mumbai with operations globally, it serves Fortune 100 companies in industries like FMCG, finance, healthcare, retail, and tech. The company has developed proprietary AI platforms such as Flyfish (generative AI for sales), Eugine (sustainability analytics), Asper (consumer goods insights), and Senseforth (conversational AI), and has incubated Qure.ai for healthcare diagnostics. Fortune clients include Google, Wells Fargo, and Reckitt Benckiser.

In FY 25, Fractal reported revenue of ₹2,765.4 crore and delivered a net profit of ₹220.6 crore, compared to a net loss of ₹54.7 crore in FY 24.

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