Fractal Analytics raises Rs 1,248 crore from anchor investors ahead of IPO

Artificial intelligence (AI) firm Fractal Analytics has raised around Rs 1,248.2 crore from anchor investors ahead of its initial public offering (IPO), which opens for subscription on February 9.

The company allocated 1.3 crore equity shares to 52 anchor investors at Rs 900 per share, according to a stock exchange filing. Domestic mutual funds accounted for nearly 38% of the anchor book, translating into an investment of around Rs 474.9 crore.

Among the largest anchor investors was SBI Small Cap Fund, which picked up nearly 11.6 lakh shares worth Rs 104.9 crore, followed by Life Insurance Corporation of India (LIC), which invested about Rs 100 crore for 11.1 lakh shares.


Other participants in the anchor book included ICICI Prudential, Motilal Oswal, Goldman Sachs, HDFC Life, and Morgan Stanley.

Insurance companies together accounted for about 20.1% of the anchor allocation.

As per the red herring prospectus (RHP), 75% of the IPO has been reserved for qualified institutional buyers (QIBs), of which 60% was allocated to anchor investors.

The company has priced its IPO at a discount of about 26% to its most recent private market valuation. At the IPO price band of Rs 857-900 per share, Fractal is valued at around Rs 15,473 crore ($1.71 billion) on a post-money basis at the upper end of the band. The company was last valued at approximately Rs 20,978 crore ($2.44 billion) in July 2025, when it raised $170 million.

Fractal has also reduced the overall IPO size by about 42% to Rs 2,834 crore from its earlier plan of Rs 4,900 crore. Of the total issue, Rs 1,023.50 crore will be raised through a fresh issue of equity, while the offer-for-sale (OFS) component will be worth Rs 1,810.40 crore.

In an earlier interaction with ET, Srikanth Velamakanni, cofounder and group CEO of Fractal Analytics, said public market investors tend to assess AI companies differently from specialised private investors, who are more thematic and spend considerable time understanding the category. He added that the company could have raised capital at a higher valuation in the private markets.

Founded in 2000, Fractal provides data-driven insights and end-to-end AI solutions to large enterprises across industries to aid decision-making.

For the six months ended September 2025, the company reported operating revenue of Rs 1,559 crore, compared with Rs 1,300 crore in the year-ago period. Net profit stood at Rs 70.9 crore, marginally lower than Rs 72.9 crore a year earlier.