Fractal Analytics IPO

About Fractal Analytics Ltd IPO

The 100% book building issue of Fractal Analytics Ltd comprises a fresh issue of aggregating up to ₹1279.30 crores and an offer for sale aggregating up to ₹3620.7 crores. The total offer size of the issue aggregates up to ₹4900 crores. The price band is [TBA] per share and the lot size is [TBA]. The IPO opens on [TBA] and closes on [TBA].

The listing date is on [TBA] and the allotment date is on [TBA]. The credit of shares to the Demat account will take place on [TBA], while the initiation of refund will take place on [TBA].

Founded in 2000, Fractal Analytics Ltd is a globally recognised enterprise artificial intelligence (AI) company, with a vision to power human decisions in its clients’ enterprises by leveraging AI. It supports large global enterprises with data-driven insights and assists them in their decision making through its end-to-end AI solutions.

Objectives of Fractal Analytics Ltd IPO

The company proposes to utilise the IPO proceeds for:

• Investment in one of its 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 is research & development and sales and marketing under Fractal Alpha
  
• Funding inorganic growth through unidentified acquisitions and other strategic initiatives
  
• General corporate purposes
  

Industry Outlook

The increasing availability of enterprise-ready Gen AI tools and technologies is prompting enterprises to sharpen their focus on AI. Gen AI, which gained traction after ChatGPT’s release, offers advanced capabilities in NLP, image generation, and automated decision-making.

Industry experts recognise technology’s transformative potential and strategic implications for business operations and are increasingly emphasising AI and Gen AI adoption across business functions, in meetings and earnings calls. This top-down interest will ensure substantial investment in AI technologies and necessary resources and attention to AI initiatives.

The AI software market was estimated to be worth US$101 billion (₹8 trillion) in Fiscal 2025 and is expected to reach US$283 billion (₹24 trillion) in Fiscal 2030. The overall AI software market is estimated to grow at a CAGR of 22.9% over Fiscal 2025-30.

Fractal Analytics Company Information

Founded in 2000, Fractal Analytics is a globally recognised enterprise artificial intelligence (“AI”) company , with a vision to power human decisions in its clients’ enterprises by leveraging AI. It supports large global enterprises with data-driven insights and assists them in their decision making through its end-to-end AI solutions.

Fractal builds its solutions by leveraging its technical, domain and functional capabilities built over its operating history of over 25 years. As of March 31, 2025, its full suite of AI solutions is organised under two segments: Fractal.ai (comprising AI services and AI products primarily hosted on Cogentiq) and Fractal Alpha (comprising AI businesses). Through these two segments, the company caters to the diverse business needs of its clients across industries and business functions.

Strengths of Fractal Analytics Ltd

• Leading player in a large and growing AI market
• Long-standing and growing relationships with marquee, global clients contributing to a diversified revenue base
• Deep and integrated technical, domain and functional expertise
• Track record of inventing and investing to benefit clients
• Culture of trust, transparency & freedom to nurture talent
• Experienced founders-led management team focused on building Fractal for the long term

Risks of Fractal Analytics Ltd

• Security breaches, cyber-attacks, computer viruses and hacking activities may cause material adverse effects on business, financial performance and results of operations
• Inability to maintain or expand relationships with existing clients and acquire new ones could negatively impact business
• Decrease in demand for AI solutions for CPGR, BFSI, HLS and TMT industries could adversely impact business
• Global operations involve challenges and risks that could increase its expenses
• Delays or failure in meeting contractual timelines or the expectation of its clients may result in cost overrun, loss of business and disputes
• Failure to adopt to new technologies could adversely affect business
• Failure to attract, retain and train skilled talent could affect profitability

Peer Comparison

There are no listed companies in India or globally which operate in a similar business model as Fractal Analytics Ltd. The company is a leading pure-play enterprise data, analytics, and AI company, recognised globally, with capabilities across the DAAI value chain. It is placed uniquely among the other industry players, with active investments in expanding its AI and Gen AI software portfolio and R&D capabilities.

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Managers

• Registrar: MUFG Intime India Pvt Ltd
• Book Running Lead Manager: Kotak Mahindra Capital Company Ltd and Axis Capital Ltd

Fractal Analytics Business Model

Fractal Analytics Ltd is India’s leading pure-play enterprise data, analytics and AI company, recognised globally, with capabilities across the data, analytics and AI (DAAI) value chain. The company operates under two segments:

• Fractal.ai: This consists of AI services and AI products. The company’s AI products are primarily hosted on Cogentiq, the flagship agentic AI platform designed to help product owners and enterprises accelerate building and upgrading products through a pre-built suite of agents, tools, connectors with in-built lowcode, security, governance, auditability and inter-operability features.

• Fractal Alpha: This consists of independent AI businesses that target Fractal.ai’s core MWCs and broader markets and new geographies, with each business under separate management.

Fractal Analytics Growth Trajectory

The revenue from operations of Fractal Analytics Ltd grew from ₹1985.40 crores in FY 23 to ₹2765.40 crores in FY 25. Its adjusted PAT margin grew from 2.7% in FY 23 to 12.6% in FY 25, while adjusted EBITDA margin grew from 6.8% in FY 23 to 17.4% in FY 25. Long-standing and growing relationships with marquee, global clients along with deep and integrated technical, domain and functional expertise have helped the company grow.

Fractal Analytics Market Position

Fractal Analytics Ltd is India’s leading pure-play enterprise data, analytics and AI company, recognised globally, with capabilities across the DAAI value chain. It recorded revenue growth at a CAGR of 18% over Fiscals 2023 to 2025 compared to the DAAI global third-party market’s CAGR of 11%, demonstrating its ability to win market share.

While the company is incorporated in India, it caters to a global clientele, with 91.6% of its revenue in Fiscal 2025 from clients located outside of India. As of March 31, 2025, it worked with 10 of the 20 largest CPG companies, eight of the 20 largest TMT companies, three of the 20 largest BFSI companies, 10 of the 20 largest HLS companies and five of the 20 largest retail companies, based on Fiscal 2025 revenues.

How to Check Allotment Status of Fractal Analytics Ltd?

1. Visit the Registrar’s Website

• Visit the website of MUFG Intime India Pvt Ltd
  
• Choose ‘Public Issues’ from Investor Services dropdown
  
• Choose the name of the company from ‘Select Company’ dropdown
  
• Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
  
• Click on Submit to check the status
  

2. Verify on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Fractal Analytics Ltd IPO. Go to the NSE website and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO Bid Verification page, enter:

• Company name from dropdown
  
• Application number
  
• PAN
  

Then click 'Submit' to know the allotment status.

3. Check on the Bombay Stock Exchange Website

• Go to the BSE website
  
• Click on ‘Status of Issue Application’ under ‘Investor Services’
  
• Click on ‘Application Status Check’
  
• Choose the ‘Issue Type’ and ‘Issue Name’
  
• Enter either your PAN or Application Number
  
• Tick the box ‘I’m not a robot’
  
• Click on ‘Search to view allotment status
  

How to Apply for Fractal Analytics Ltd IPO?

• Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details - Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification - Your UPI app will receive a mandate notification to block funds.
  
• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.