Fractal Analytics IPO Day 3: Issue subscribed 27% so far; check GMP

The initial public offering (IPO) of AI and analytics firm Fractal Analytics saw muted demand so far, with the issue subscribed 0.27 times as of 11:45 am on Day 3.

The portion reserved for qualified institutional buyers (QIBs) was subscribed 0.08 times, while the non-institutional investors (NIIs) segment was subscribed 0.35 times.

The retail individual investors (RIIs) category fared relatively better, garnering 0.72 times subscription. Meanwhile, the employee quota was subscribed 0.27 times.

The ₹2,834 crore IPO of AI solutions provider Fractal Analytics opens for subscription on February 8 and will close today (February 11).

As per a grey market tracking platform, Investorgain, Fractal Analytics' stock is at a flat GMP of ₹3, indicating a muted listing of ₹903, against the issue price of ₹900.

However, grey market indications are speculative in nature and the actual listing price may differ materially from these levels.

At the upper price band of ₹900, Fractal Analytics is valued at a post-issue P/E of 67.4x, indicating aggressive pricing.

The valuation is backed by strong growth expectations in enterprise AI, a premium Fortune 500 client base, and long-term industry tailwinds.

However, citing the elevated valuation, an evolving profitability profile, and execution risks in a fast-changing AI market, Angel One has assigned a ‘Neutral’ rating to the issue.

Ahead of the issue, the company raised ₹1,248.26 crore from anchor investors. These include Morgan Stanley Investment Funds, Goldman Sachs Bank Europe, Societe Generale (ODI), SBI Mutual Fund, and ICICI Prudential Mutual Fund, among others.

Read More: Fractal Analytics IPO: Brokerages mixed, valuation a concern

The company plans to use the net proceeds to fund research and development, expand sales and marketing for its AI incubator, Fractal Alpha, repay borrowings of its US subsidiary, establish a new office in India, and for other general purposes.

Its profit dipped 3% to ₹70.9 Cr in the first half of FY26, compared to ₹72.9 Cr in the same period last year, while operating revenue jumped 20% to ₹1,559 Cr from ₹1,300.7 Cr in H1 FY25.