Fractal Analytics IPO GMP at 12%: Here are 10 key things to know from the RHP ahead of offer launch

Fractal Analytics IPO: The initial public offering (IPO) of Fractal Analytics is set to hit the primary market next week on Monday, February 9, as it looks to become the first AI-focused listed firm in the Indian stock market. The company has fixed the Fractal Analytics IPO price band at ₹857-900, targeting a valuation of ₹14,450 crore. The company has, however, slashed its IPO size to ₹2,834 crore from the ₹4,900 crore planned initially. Fractal's latest valuation is lower than what it was valued at in the previous financing round. The company was advised to leave money on the table as AI is a new category for investors, Fractal CEO Srikanth Velamakanni told Reuters. Ahead of the IPO launch, Fractal Analytics is already enjoying a decent grey market premium (GMP), signalling the strong buzz that the offer is generating. Fractal Analytics IPO GMP Fractal Analytics IPO GMP today is ₹105. This means that shares of Fractal Analytics are trading ₹105 above the offer price of ₹900. At the current GMP, Fractal Analytics IPO could list at a premium of 11.67% over the upper end of the price band. However, investors must note that GMP is subject to sharp swings and should not be the deciding factor behind investment in an IPO. To make an informed decision, investors must consider factors like financial performance, industry position and runway for growth, among other things. Fractal Analytics IPO: 10 things from RHP Before the offer opens on Monday, here are the key things that investors must know about Fractal Analytics IPO from the RHP. Take a look: 1. Fractal Analytics IPO date The mainboard public offering will open for bidding on February 9 and close on February 11. The anchor investors can apply for the Fractal Analytics IPO on Friday, February 6. The listing of Fractal Analytics IPO is expected to take place on February 16. 2. Fractal Analytics IPO size & structure Fractal Analytics IPO is a combination of a fresh issue of ₹1,023.5 crore and an offer for sale of ₹1,810.4 crore, resulting in a total offer size of ₹2,833.9 crore. 3. Who are the sellers in Fractal Analytics IPO? Quinag Bidco, TPG Fett Holdings, Satya Kumari Remala and Rao Venkateswara Remala, and GLM Family Trust are the selling shareholders in the IPO 4. Fractal Analytics IPO objective According to the RHP, the company plans to use the fresh proceeds for various purposes, including ₹265 crore for investment in subsidiaries and repayment of borrowings, ₹57 crore for purchase of laptops, ₹121 crore for setting up new office premises in India, and ₹355 crore for investment in R&D and sale and marketing. The remaining funds will be used for general corporate purposes. 5. Fractal has worked with Magnificent Seven According to the company's RHP, Fractal has worked with marquee clients across focus industries of consumer packaged goods, technology, media and telecommunications, healthcare, life sciences and BFSI. Its clients include Citibank, Costco, Franklin Templeton, Mars, Mondelez, Nationwide, Nestle, Philips, among others. Further, Fractal has experience in serving several large enterprises including the majority of the “magnificent seven” companies (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla). 6. Financial snapshot Fractal Analytics is India’s leading pure-play enterprise data, analytics and AI company (DAAI). It has seen a steady growth in revenue from ₹1985 crore in Fiscal 2023 to ₹2765 crore in Fiscal 2025. It is only the last Fiscal that the company turned profitable as it posted a bottomline of ₹196 crore as against a loss of ₹320 crore in Fiscal 2023 and ₹42 crore in Fiscal 2024. 7. Global clients contribute most to revenue The company caters to a global clientele, with 92.4% of its revenue in the six months ended September 30, 2025, and 91.6% of the revenue in Fiscal 2025 from clients located outside of India. 8. Client concentration risk As of 1HFY26/FY25, the company’s top 10 clients contributed 54.2%/53.8% to the total revenue from the Fractal.ai business segment, exposing the company to financial shocks in case of failure to maintain and expand relationships with its existing clients. 9. Fractcal operates 2 segments The company leverages its technical, domain and functional capabilities to build AI solutions for its clients while operating under two segments, namely Fractal.ai and Fractal Alpha. Fractal.ai consists of AI services and AI products that are primarily hosted on Cogentiq – the company’s flagship agentic AI platform designed to help product owners & enterprises accelerate building and upgrading products through a pre-built suite of agents, tools, etc., whereas Fractal Alpha consists of independent AI businesses that target Fractal.ai’s core MWCs, broader markets & new geographies, with each business under separate management. 10. Industry outlook remains firm The overall DAAI market, valued at an estimated $143 billion ( ₹12 trillion) in Fiscal 2025, is expected to grow at 16.7% CAGR to $310 billion ( ₹23 trillion) by Fiscal 2030. Banking, financial services, and insurance (BFSI), healthcare and life sciences (“HLS”), retail and distribution, consumer packaged goods and technology, media and telecommunication, which are among the key areas that Fractal operates in, were estimated to account for 80% of the global DAAI services market in Fiscal 2025, as per the Everest report. Fractal Analytics IPO review Commenting on Fractal Analytics IPO, SBI Securities said that it operates in a niche segment of Data Analytics, leveraging AI, developed through in-house R&D and resources, as well as on external models. "At the upper price band of ₹900, the issue is valued at a FY25 P/E multiple of 78.9x based on post-issue capital. This looks elevated given the relatively modest revenue growth (18% revenue CAGR between FY23-25 and 20% YoY growth in 1HFY26). Attrition rate for the company continues to be elevated (16.3% in FY25/15.7% in 1HFY26)," said the brokerage. Risks such as insourcing by clients, especially with the advent of AI tools, could lead to loss of clients and impact the company’s business model, it added. Therefore, taking into consideration the elevated valuation, SBI Securities assigned a NEUTRAL rating to the issue. Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.