Fractal Analytics Ltd., the second initial public offering of 2026 and India's first artificial intelligence public issue, has set the price band at Rs 857-Rs 900 per share, according to a public advertisement on Wednesday. Backed by private equity majors TPG and APAX, the company will raise Rs 2,834 crore in fresh issue and offer for sale.
The IPO will open for subscription on Monday, Feb. 9 and close on Wednesday, Feb. 11. The issue consists of a fresh issue worth up to Rs 1,023.5 crore and an offer for sale of Rs 1,810 crore. Investors can bid for a minimum of 16 equity shares per lot and multiples of 16 thereafter.
The anchor round for large institutional bidding will be held on Friday, Feb. 6.
The allotment of shares to IPO investors will be done on Feb. 12 and the stock will debut on the NSE and BSE on Feb. 16.
Fractal Analytics filed offer documents for an IPO worth Rs 4,900 crore in August last year. As India's first AI unicorn, the company is seeking to capitalise on investor demand for the emerging sector as well as the country's adoption of consumer technologies.
The company will utilise Rs 355 crore from the proceeds of the fresh issue to invest in R&D and sales and marketing under Fractal Alpha, its incubation business.
AI-stocks have seen a tremendous run-up on the Wall Street, but many of them are in the chips and devices space. Indian IT companies have started investment in AI as part of their offering to the global customers. Newers clients are asking for services along with AI offerings that help would help in cost takeouts and reduce their SG&A expenses.
Co-founded in 2000 by five graduates of the Indian Institute of Management Ahmedabad, the startup's valuation topped $1 billion in 2022. Since then it has doubled.
Three of the founders have since exited, leaving Group Chief Executive Officer Srikanth Velamakanni and Fractal CEO Pranay Agrawal at the helm. The key managerial personnels, who each own about 10% of the company pre-IPO, aren't selling shares in the IPO.
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