Bengaluru: Artificial intelligence and analytics firm Fractal has raised ₹1,248 crore from anchor investors, setting a strong tone ahead of the opening of its initial public offering (IPO), according to a regulatory filing.
The company allotted 1.38 crore equity shares to anchor investors at ₹900 per share, the upper end of the IPO’s price band. The anchor round attracted a broad mix of leading domestic mutual funds and global institutional investors, signalling confidence in Fractal’s business model and long-term growth prospects.
Among domestic investors, SBI Small Cap Fund and Life Insurance Corporation of India (LIC) emerged as key participants. The anchor book also saw strong interest from marquee global names including Morgan Stanley, Goldman Sachs, Amundi, Kuwait Investment Authority, and Allspring Global Investments, underscoring overseas investors’ appetite for India’s AI-led growth stories.
Fractal has set the IPO price band at ₹857–900 per share, valuing the company at around $1.6 billion at the upper end. The public issue is scheduled to open on February 9 and close on February 11.
As per the red herring prospectus (RHP), the size of the IPO has been cut by about 42 per cent to ₹2,834 crore, compared with the ₹4,900 crore issue proposed in the draft red herring prospectus (DRHP) filed last year. The revised structure includes a fresh issue of ₹1,023.5 crore and an offer for sale (OFS) worth ₹1,810.4 crore by existing shareholders.
The company plans to utilise proceeds from the fresh issue to pursue inorganic growth opportunities, invest in subsidiaries, support working capital needs, and meet general corporate expenses.
Founded in 2000, Fractal provides artificial intelligence and advanced analytics solutions to large global enterprises across sectors such as consumer goods, retail, healthcare, technology and financial services. A significant portion of its revenue comes from international markets, particularly the United States, reflecting its strong global client base.
On the financial front, Fractal has shown a sharp turnaround. The company reported consolidated revenue of ₹2,765 crore in FY25, up from ₹2,196 crore in FY24. Net profit stood at ₹220.6 crore in FY25, compared with a loss of ₹54.7 crore in the previous year. For the first half of FY26, Fractal posted revenue of ₹1,559 crore and a profit of ₹71 crore, indicating continued momentum ahead of its public market debut.
With strong anchor participation and improving financial performance, Fractal’s IPO will be closely watched as a bellwether for investor sentiment toward India’s AI and analytics sector.
