Fractal Analytics IPO Day 2 Update: Retail subscription near 50%, GMP trend and expert insights

Fractal Analytics’ Rs 2,834-crore initial public offering (IPO) has, on its second day of bidding so far, seen an overall subscription of about 11% of the total 1.85 crore shares on offer. Demand was stronger among retail investors, with 46% of their allocated portion getting subscribed. The IPO will remain open for subscription until February 11.

In the unofficial grey market, the company’s shares are trading at a modest premium of around 1%, or roughly Rs 8 per share, down from an earlier premium of 1.5%, reflecting a slight softening in sentiment. Analysts indicate that the IPO may be more suitable for investors with a long-term investment horizon.

Fractal Analytics IPO subscription status

By 11 am on the second day, Fractal Analytics’ IPO had received an overall subscription of roughly 11% of the total 1.85 crore shares on offer, according to BSE data.

Demand was notably stronger from Retail Individual Investors (RIIs), who subscribed to 46% of the 32.36 lakh shares reserved for them, reflecting early interest from small investors.

Non-Institutional Investors (NIIs) showed modest participation, with about 10% of their 48.55 lakh shares subscribed. Qualified Institutional Buyers (QIBs) saw no bids yet for the 97.10 lakh shares allocated to this category.

Fractal Analytics IPO GMP today

As of February 10, 2026, Fractal Analytics’ IPO is commanding a Grey Market Premium (GMP) of Rs 8 per share, or about 1%, marking a slight decline from the earlier premium of 1.5%. With the IPO price band fixed at Rs 857 to Rs 900 per share, the implied listing price is estimated to be around Rs 908. The shares are trading at a modest premium in the grey market, suggesting a cautiously positive outlook among investors ahead of the stock’s market debut.


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About the company

Founded in 2000, Fractal Analytics is a global enterprise AI and decision intelligence company serving large corporations across sectors such as consumer goods, technology, healthcare, BFSI and retail. Over the past two decades, the company has developed strong capabilities in data engineering, analytics and artificial intelligence, establishing itself as a long-term partner for enterprises seeking to integrate AI into core decision-making processes.

Fractal operates through two main segments, Fractal.ai, which focuses on AI services and platforms including its Cogentiq agentic AI offering, and Fractal Alpha, which houses product-led and IP-driven AI businesses.

Financial performance

On the financial front, the company recorded a strong turnaround in FY25. Revenue climbed to Rs 2,765 crore, registering nearly 26% year-on-year growth, while profit after tax rebounded sharply to Rs 221 crore, compared with a loss of Rs 55 crore in the previous fiscal year.

EBITDA margins also saw a meaningful improvement, rising to about 14%, driven by operating leverage and better utilisation of delivery teams. Analysts highlight that the return to profitability is a major factor bolstering investor confidence, although the business continues to be sensitive to fluctuations in global technology spending.

Valuations and analysts’ take

At the upper price band of Rs 900, Fractal is valued at a steep multiple compared with traditional IT services companies. According to Swastika Securities, post-issue valuations imply a high earnings multiple, but this also reflects a scarcity premium.

"Fractal is India's first pure-play AI company to list, positioned as a decision intelligence platform combining AI services with incubated SaaS products. The sharp turnaround in profitability and exposure to the global GenAI cycle justify a premium, though the issue is best suited for high-risk investors with a long-term view," the brokerage said, assigning a subscribe rating.

Ventura Securities also flagged the company's diversified revenue profile and improving profitability, while cautioning on execution risks inherent in fast-evolving technology businesses. "Fractal has built scale in enterprise AI with strong client relationships and improving margins. However, dependence on large global clients, significant exposure to the US market and rapid changes in AI regulation remain key risks," Ventura said, recommending subscription for investors with a medium- to long-term horizon.

Objects of the issue

The funds raised through the fresh issue will be deployed to repay or prepay borrowings of its US subsidiary, strengthen investments in research and development, and scale up sales and marketing efforts under the Fractal Alpha platform. A portion of the proceeds will also be used to establish new office facilities in India and to explore inorganic growth opportunities through acquisitions or strategic investments.

The company has underscored its strategy of deepening engagement with “must-win clients” while accelerating product innovation, positioning these initiatives as key drivers of its future growth.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times.)