Fractal Analytics IPO Day 2 Highlights: AI firm sees tepid interest, check GMP - Should you still subscribe?

Fractal Analytics IPO Day 2 LIVE: The issue was subscribed just 0.20 times by 5:00 pm on Day 2. It received bids for 25.96 lakh shares against the 1.76 crore shares on offer.

The retail portion was subscribed 0.60 times, while Non-Institutional Investors (NIIs) were booked just 0.29 times, and the qualified portion was bid 0.02 times. The employee quota was booked 0.20 times.

Fractal Analytics IPO Day 2 LIVE: Brokerage firm Ventura has also assigned a ‘Subscribe’ rating to the IPO, citing Fractal’s growth drivers and improving financial profile.

In its note, Ventura said, “Fractal’s growth is driven by increasing enterprise adoption of AI-led decision intelligence and expanding deployment of generative AI solutions across client use cases. However, execution risks, evolving technology cycles, and competitive pressures in the global AI and analytics services market remain key considerations. Overall, Fractal Analytics is positioned as a scaled enterprise AI platform with diversified industry exposure, strong revenue momentum, and improving profitability metrics.”

Fractal Analytics IPO Day 2 LIVE: The grey market premium (GMP) for the Fractal Analytics IPO has declined to ₹2.5 per share from ₹8 earlier, suggesting that the stock is likely to list marginally above its issue price. Based on this GMP and the upper price band, the estimated listing price is ₹902.5, reflecting just a 0.28% premium over the upper issue price of ₹900 per share.

It’s important to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.

Fractal Analytics IPO Day 2 LIVE: ICICI Direct said Fractal is developing a broad suite of AI-led solutions and products, but noted that its AI investments appear comparable to those of traditional IT services peers when measured across parameters such as R&D intensity, capex intensity, patent filings and AI-led revenue. The brokerage added that Fractal’s revenue per employee and cost per employee metrics are broadly in line with pure-play data analytics peer LatentView Analytics, indicating similarities in the underlying services and solutions portfolio.

Fractal Analytics IPO Day 2 LIVE: The issue was subscribed just 0.19 times by 4:12 pm on Day 2. It received bids for 35.46 lakh shares against the 1.76 crore shares on offer.

The retail portion was subscribed 0.59 times, while Non-Institutional Investors (NIIs) were booked just 0.26 times, and the qualified portion was bid 0.02 times. The employee quota was booked 0.19 times.

SBI Securities highlighted that Fractal Analytics operates in a specialised data analytics segment, serving large multinational clients across four key industries, with long-standing relationships and an average top-client tenure of over eight years. However, the brokerage flagged concerns around valuation, modest revenue growth and elevated attrition levels.

In its IPO note, SBI Securities said, “Fractal Analytics operates in a niche segment of data analytics leveraging AI developed through in-house R&D and external models, with a healthy presence across four focus industries and over eight years of average tenure among top clients.”

The brokerage also cautioned that increasing client insourcing, driven by wider adoption of AI tools, could impact the company’s business model. Considering the elevated valuation at the upper price band, SBI Securities has assigned a Neutral rating and prefers to track the company’s performance for a few quarters post listing.

Fractal Analytics IPO Day 2 LIVE: Fractal Analytics has fixed its IPO price band in the range of ₹857 to ₹900 per share. Investors can apply in a lot size of 16 equity shares. At the upper end of the price band, the minimum investment required for a retail applicant works out to ₹14,400 for one lot of 16 shares

Fractal Analytics IPO Day 2 LIVE: Anand Rathi pointed to the company’s strong client-first strategy, deep-rooted customer relationships and its selection by the Government of India under the IndiaAI Mission to develop sovereign reasoning models, including specialised medical AI solutions. Despite valuing the issue at a steep post-issue P/E of 79x, the brokerage maintained a ‘Subscribe – Long Term’ view, supported by Fractal’s diversified presence across four core industries and an average top-client association exceeding eight years.

Fractal Analytics IPO Day 2 LIVE: The issue was subscribed just 0.14 times by 2:35 pm on Day 2. It received bids for 25.96 lakh shares against the 1.76 crore shares on offer.

The retail portion was subscribed 0.55 times, while Non-Institutional Investors (NIIs) were booked just 0.14 times, and the qualified portion has not yet opened for bidding. The employee quota was booked 0.19 times.

Fractal Analytics IPO Day 2 LIVE: The company raised ₹1,248.26 crore through its anchor book by allotting 1.39 crore equity shares to 52 anchor investors ahead of the IPO. The shares were issued at ₹900 apiece, against a face value of ₹1 per equity share.

The anchor round saw strong participation from domestic institutional investors, including SBI Mutual Fund, ICICI Prudential Mutual Fund, Motilal Oswal Mutual Fund, UTI Mutual Fund, Trust Mutual Fund, Bandhan Mutual Fund, among several others.

Fractal Analytics IPO Day 2 LIVE: The allotment for the IPO shares is expected to be finalised on February 12, while the listing on the exchanges, BSE and NSE, is likely to be on February 16, as per the tentative schedule.

Fractal Analytics IPO Day 2 LIVE: The grey market premium (GMP) for the Fractal Analytics IPO has declined to ₹4 per share from ₹8 earlier, suggesting that the stock is likely to list marginally above its issue price. Based on this GMP and the upper price band, the estimated listing price is ₹904, reflecting just a 0.44% premium over the upper issue price of ₹900 per share.

The GMP represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.

Fractal Analytics IPO Day 2 LIVE: Geojit said investors could consider subscribing to the Fractal Analytics IPO despite relatively expensive valuations.

“At the upper price band of ₹900, Fractal is valued at a P/E of 70x for FY25 and a P/E of 109x(annualised) for FY26E, reflecting an expensive valuation. However, Fractal Analytics offers a compelling investment opportunity in India’s enterprise AI ecosystem, supported by a strong global client base, improving profitability, and exposure to a rapidly growing sector. Hence, we recommend a ‘Subscribe’ rating for high-risk investors with a long-term investment horizon,” it suggested.

Fractal Analytics IPO Day 2 LIVE: The issue was subscribed just 0.13 times by 1:50 pm on Day 2. It received bids for 24.25 lakh shares against the 1.76 crore shares on offer.

The retail portion was subscribed 0.52 times, while Non-Institutional Investors (NIIs) were booked just 0.13 times, and the qualified portion has not yet opened for bidding. The employee quota was booked 0.18 times.

Fractal Analytics IPO Day 2 LIVE: The company reported a revenue CAGR of 18.0% between FY23-25. Operational profitability has shown steady recovery, with a loss of ₹116 crore in FY23, followed by a profit of ₹73 crore (3.3% of revenue), ₹350 crore (12.7% of revenue), and ₹200 crore (12.8% of revenue) in FY24, FY25, and 6MFY26, respectively.

Fractal Analytics IPO Day 2 LIVE: Fractal Analytics is India’s leading pure-play enterprise Data, Analytics and Artificial Intelligence (DAAI) company that helps leading organizations make smarter, data-driven decisions with deep technical capabilities with strong domain and functional expertise.

Fractal Analytics IPO Day 2 LIVE: BP Equities said “At the upper end of the price band of ₹900 per share, the company is trading at a P/E of 110.0x based on its FY26 annualized earnings. Given the company’s positioning within a rapidly expanding AI market and its improving profitability profile, we recommend a ‘SUBSCRIBE’ rating to the issue from a medium-to long-term perspective.”0

Fractal Analytics IPO Day 2 LIVE: The company proposed to utilise the net proceeds from the issue for multiple objectives, including an investment of ₹264.90 crore in its subsidiary, Fractal USA, towards the pre-payment and/or scheduled repayment, in full or in part, of its borrowings. It also planned to allocate ₹57.10 crore for the purchase of laptops and ₹121.10 crore for setting up new office premises in India. Additionally, ₹355.10 crore was earmarked for investments in research and development and sales and marketing under Fractal Alpha, while the remaining funds were intended to support inorganic growth through unidentified acquisitions, other strategic initiatives, and general corporate purposes.

Fractal Analytics IPO Day 2 LIVE: The issue was subscribed just 0.03 times by 10:50 am on Day 2. It received bids for 5.95 lakh shares against the 1.76 crore shares on offer.

The retail portion was subscribed 0.14 times, while Non-Institutional Investors (NIIs) were booked just 0.03 times, and the qualified portion has not yet opened for bidding. The employee quota was booked 0.03 times.

Fractal Analytics IPO Day 2 LIVE: In the grey market, Fractal Analytics IPO shares are quoting at a premium of ₹8. This implies an estimated listing price of around ₹908, translating into a 0.89% premium over the upper issue price of ₹900, indicating steady pre-listing interest.

Fractal Analytics IPO Day 2 LIVE: The AI and analytics firm aims to raise ₹2,833.90 crore through the IPO. The issue consists of a fresh equity issuance of 1.14 crore shares worth ₹1,023.50 crore and an offer for sale of 2.01 crore shares aggregating to ₹1,810.40 crore.