Fractal Analytics ges SEBI approval for ₹4,900-crore IPO and offer for sale

Globally-recognised enterprise AI company Fractal Analytics on Monday (November 24) received approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO).

The IPO comprises a fresh issue of equity shares aggregating up to ₹1,279.3 crore and an offer for sale (OFS) of equity shares aggregating up to ₹3,620.7 crore.

The OFS includes equity shares aggregating up to ₹1,462.6 crore by Quinag Bidco Ltd, up to ₹1,999.6 crore by TPG Fett Holdings Pte. Ltd, ₹29.5 crore by Satya Kumari Remala and Rao Venkateswara Remala, and ₹129 crore by GLM Family Trust — collectively the selling shareholders.

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Fractal Analytics plans to use the net proceeds from the offer for investment in its subsidiary Fractal USA for pre-payment or scheduled repayment of borrowings, purchase of laptops, setting up new office premises in India, investment in research and development, sales and marketing under Fractal Alpha, and funding inorganic growth through acquisitions and other strategic initiatives.

Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal supports large global enterprises across multiple industry verticals with data-driven insights and AI solutions. Backed by investors such as TPG, Apax, and Gaja, Fractal has expertise across consumer packaged goods and retail, technology, media and telecom, healthcare and life sciences, and banking, financial services & insurance.

As of March 31, 2025, the company has served major global clients, including Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla. Fractal’s revenue from operations rose 25.9% to ₹2,765 crore in FY25 from ₹2,196 crore in FY24. Profit after tax turned positive at ₹22 crore in FY25 compared with a loss of ₹5.47 crore in FY24. PAT and EBITDA margins increased to 12.6% from (0.2%) and 17.4% from 10.6%, respectively.

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Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited and Goldman Sachs (India) Securities Private Limited are the book running lead managers to the IPO.