Chennai: After initial hiccups, India's first pure-play artificial intelligence company, Fractal Analytics public issue got subscribed 2.66 times, rec.

After hiccups, Fractal IPO gets 2.7x bids

Fractal Analytics' IPO Receives Overwhelming Response from Investors

India's first pure-play artificial intelligence company, Fractal Analytics, has seen its initial public offering (IPO) receive a significant amount of interest from investors, despite initial hiccups.

2.66 Times Subscription: The IPO saw a subscription of 2.66 times, with bids for 4.94 crore shares received from qualified institutional buyers.
Category-wise Breakdown:
- Qualified Institutional Buyers (QIBs): 4.05 crore shares bid, 4.18 times reserved for the category.
- Retail Individual Investors: 1.03 times subscription
- Non-Institutional Investors: 1.6 times subscription
- Employee Category: 61% bids received
IPO Details: The Rs 2,834 crore IPO, which opened on Monday, initially received a tepid response on the first two days due to the severe disruption in the AI sector.
Debut on BSE and NSE: The company's IPO allotment status is likely to be finalised on Feb 12, with the company expected to debut on both BSE and NSE on Feb 16.

According to Kranthi Bathini, equity strategist at WealthMills securities, the lack of interest in AI companies is due to the severe disruption in the sector, with investors requiring a high risk appetite to invest.

He further stated that AI as a theme is still evolving, and many participants are in a wait-and-watch mode. Serious money is only invested after tracking at least a couple of quarters of performance post-listing, reflecting a broader market consolidation phase.