Fractal Analytics IPO 2026: ₹857-900 Price Band, 35% Funds for AI and R&D

Announcing the launch of its initial public offering (IPO) on Monday at a price band of ₹857-900 per equity share of face value ₹1 each, Fractal Analytics said it will allocate over a third of the capital raised to AI and research and development. On Tuesday, the company reduced its IPO size from ₹4,900 crore to around ₹2,834 crore. Speaking to businessline, Fractal said it lowered pricing in line with stronger investor confidence. “Based on a lot of good advice from some of the top funds in the country, we agreed on the ₹857 to ₹900 price range. Then some of the selling shareholders wanted to stay on instead of selling at that price, because saying they are pretty confident on where Fractal is going,” said Co-Founder, Group Chief Executive & Executive Vice-Chairman, Fractal Analytics. About ₹355 crore, or 35 per cent of the capital raised from this IPO, is earmarked for AI revenue, R&D, and alpha-related investments. According to Velamakanni, AI revenue and R&D are crucial for Fractal’s future success, as the space is evolving and “only the most innovative companies willing to invest in AI, R&D have a strong chance of success.” The rest of the IPO proceeds will be used for loan repayment and some basic capex. The anchor investor bidding date is February 6. The offer will be open from February 9 to February 11. Bids can be made for a minimum of 16 Equity Shares of face value of ₹ 1 each, and multiples of 16 thereafter. Margin expansion plans Fractal will primarily focus on the homegrown Cogentic platform to build AI solutions for margin expansion, such as an invoice-to-cash solution, customer experience, and revenue growth, and to make the platform a greater contributor to company revenue. Cogentic revenues have a significantly higher margin than the rest of the business, thereby improving our overall margin. “We have a long way to go in terms of making people understand AI and AI companies, and having a few public AI companies is going to help market understanding,” he said. India AI Mission With regard to the India AI Mission, Fractal is planning to build an AI system for the healthcare sector by releasing a model that matches and exceeds global healthcare AI benchmarks, and then use that to launch healthcare AI for all. However, those expenses will not be budgeted in the IPO proceeds. Currently, consumer products and goods contribute to 37.5 per cent of the revenue, followed by telecommunication and media (27.2 per cent) followed by healthcare at 17 per cent. BFSI only contributes 12.2 per cent. Macroeceonomics When asked, Velamakanni said he viewed the US-India trade developments as a positive for companies like Fractal, since the settling of trade wars means less inflationary pressure and less uncertainty for companies. “This is good for Fractal specifically because it has direct impact on our potential growth,” he said, adding how the favourable macro-environment encourages client companies on discretionary spending. Published on February 4, 2026