Fractal Analytics IPO: Issue receives tepid response on Day 01, subscribed 0.09 times. GMP signals flat listing

Fractal Analytics IPO in focus: The initial public offering (IPO) of AI and analytics company Fractal Analytics, which opened for subscription today, February 09, received a muted response from investors. By the end of the day, the issue was subscribed just 0.09 times, with 15.80 lakh shares bid for against the 1.85 crore shares on offer, according to the exchange data.

The retail portion was subscribed 0.35 times, while Non-Institutional Investors (NIIs) were booked just 0.07 times, and the qualified portion has not yet opened for bidding. The employee quota was booked 0.13 times.

Fractal Analytics issue details

The ₹2,834 crore issue comprises a fresh issue of 1.14 crore shares aggregating to ₹1,023.50 crore and an offer for sale of 2.01 crore shares aggregating to ₹1,810.40 crore.

The price band has been fixed at ₹857– ₹900 per share, while the lot size is set at 16 shares, requiring a minimum investment of ₹14,400 for retail investors. The mainboard IPO is proposed to list on both the NSE and BSE, tentatively on Monday, February 16.

Kotak Mahindra Capital Co. Ltd. is the book-running lead manager, and MUFG Intime India Pvt. Ltd. is the registrar of the issue.

In other issue details, the Fractal Analytics IPO allotment of shares is expected to be finalized on Thursday, February 12. The company will initiate refunds on Friday, February 13, and the shares will be credited to the demat accounts of allottees on the same day following refunds.

The AI firm plans to use a portion of the IPO proceeds to support its subsidiary to settle outstanding debts, while another portion of the funds raised will be allocated to buying laptops, securing new office premises, and investing in research and development, sales and marketing, as well as in certain undisclosed acquisitions.

Fractal Analytics grey market premium

As of today, the grey market premium (GMP) for the Fractal Analytics IPO stands at ₹14 per share, suggesting that the stock is likely to list above its issue price. Based on this GMP and the upper price band, the estimated listing price is ₹914, reflecting a marginal 1.56% 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.

About Fractal Analytics

Founded in 2000, Fractal Analytics is a globally recognised enterprise artificial intelligence (AI) company that supports large global enterprises with data-driven insights and assists them in decision-making through its end-to-end AI solutions.

The company builds its AI offerings by leveraging deep technical, domain, and functional capabilities developed over an operating history of more than 25 years.

Fractal’s AI solutions are organised into two segments: Fractal.ai, which comprises AI services and AI products primarily hosted on Cogentiq, and Fractal Alpha, which comprises AI-driven businesses. Through these segments, Fractal caters to the diverse business needs of clients across industries and business functions, according to the DHRP report.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.