AI firm Fractal Analytics debuts at nearly 3% discount to IPO price

Artificial intelligence (AI) firm Fractal Analytics made a subdued stock market debut Monday, its shares listing at a discount to the issue price despite robust global investments into the technology that’s tipped to hasten the mothballing of legacy IT systems.

The stock opened at Rs 876 on the NSE, nearly 3% below its issue price of Rs 900. On the BSE, it debuted flat at Rs 900.

The shares ended trading at Rs 847.1 on Monday, at a market capitalisation of around Rs 14,405 crore.


The listing follows a sharp reduction in the company’s initial public offering (IPO) size. Fractal had pared its issue by around 42% to Rs 2,834 crore from Rs 4,900 crore planned earlier. The offering comprised a fresh raise of Rs 1,023.5 crore and an offer for sale (OFS) of Rs 1,810.4 crore.

The IPO was priced at a 26% discount to Fractal’s last private market valuation. At that price, the company was valued at around Rs 15,473 crore on a post-money basis, compared with roughly Rs 20,978 crore in July 2025.

In an earlier interaction with ET, cofounder and group CEO Srikanth Velamakanni said public market investors evaluate AI businesses differently from specialised private investors, who tend to take a thematic view and spend more time understanding the category. He noted that the company could have raised capital at a higher valuation in the private markets.

Based on the listing price on the NSE, Velamakanni’s stake was valued at around Rs 769.3 crore.

On February 16, ET reported that several new-age companies that went public in recent months had trimmed their issue sizes and accepted lower valuations, as volatile equity markets and shifting investor expectations recalibrated IPO pricing. The recent listings are expected to serve as reference points for institutional investors assessing upcoming offerings, industry executives said.

The IPO was subscribed 2.66 times, with the issue fully subscribed on the final day of the three-day book-building process.

Ahead of the IPO, the company raised about Rs 1,248.2 crore from anchor investors, with domestic mutual funds accounting for nearly 38% of the anchor book.

Founded in 2000, Fractal Analytics provides data-driven insights and other AI solutions to large enterprises across sectors.

For the six months ended September 2025, Fractal reported an operating revenue of Rs 1,559 crore, up from Rs 1,300 crore in the year-ago period. Its net profit stood at Rs 70.9 crore, marginally lower than Rs 72.9 crore a year earlier.