Fractal Analytics IPO Listing: AI Firm Sees Muted Debut, Shares List At Discount To Issue Price

The artificial intelligence (AI) solutions provider Fractal Analytics’ shares had a negative debut on the bourses on February 16. Its shares listed at a discount of 2.67 per cent to the issue price. The company’s shares opened at Rs 876 per share on the NSE, down by Rs 24, or 2.67 per cent. On the BSE, the shares started at Rs 900 per share, flat at the issue price. The Fractal Analytics IPO was available to subscribe between February 9 and February 11. The basis of allotment was finalised on February 12. Shares were credited to successful applicants and investment amount were refunded to unsuccessful ones on February 13. Founded in 2000, Fractal Analytics is a global enterprise AI and analytics firm that works with large organisations to enable data-led decision-making through AI-driven solutions, as per its red herring prospectus. Its clients include Citibank, Costco, Franklin Templeton, Mars, Mondelez, Nationwide, Nestle and Philips. Fractal Analytics IPO Issue Size Fractal Analytics raised Rs 2,833.90 crore through its book-built issue, the biggest fund raise via a public issue so far this year. The IPO included a fresh issue of 11.37 million equity shares worth Rs 1,023.50 crore and an offer-for-sale (OFS) component of 20.12 million shares worth Rs 1,810.40 crore. Fractal Analytics IPO Objectives Fractal Analytics plans to use the Rs 1,023.50 crore net proceeds primarily to invest in its subsidiary, Fractal USA, to repay or prepay borrowings. It will also spend on buying laptops, setting up new offices in India, and boosting research and development, sales and marketing under its Fractal Alpha business. The remaining money, the company said in its red herring prospectus (RHP), will be allocated for acquisitions, other strategic initiatives, and for general corporate purposes. Fractal Analytics IPO Subscription Details Fractal Analytics IPO had received a decent response from investors during its subscription. The AI firm’s public issue was booked by an overall 2.66 times the total shares on offer, according to exchange data. Qualified Institutional Investors (QIBs) led the subscription, booking 4.18 times, while non-institutional investors (NIIs) and retail investors subscribed 1.06 times and 1.03 times, respectively. Employees of the company, who were offered shares with a discount of 9.50 per cent, placed bids for only 0.61 times their reservation. Fractal Analytics IPO GMP Today Ahead of the listing, the Fractal Analytics IPO’s shares traded at a grey market premium (GMP) of Rs 28 per share, already indicating a subdued listing. The GMP had seen a sharp correction from earlier levels of around Rs 180, indicating that investor enthusiasm diminished considerably in the run-up to listing. Fractal Analytics IPO Anchor List Ahead of the opening of the subscription window, the company raised Rs 1,248.26 from institutional investors in the anchor round. Out of the 13.87 million shares allocated to anchor investors, nearly 5.28 million shares, representing 38.05 per cent of the total anchor book, were allotted to 11 domestic mutual funds across 22 schemes. Life insurance companies accounted for another meaningful tranche, with 2.79 million shares, or 20.10 per cent of the allocation. Among the marquee participants, SBI Small Cap Fund bought shares worth Rs 105 crore, translating into 8.41 per cent of the anchor allocation, while Life Insurance Corporation of India subscribed to shares worth Rs 100 crore, accounting for around 8 per cent of the total. Here’s How Much Retail Investors Lost The AI company had fixed the price band at Rs 857–900 per share, with a lot size of 16 shares. At the upper end of the band, retail investors invested a minimum of Rs 14,400 to apply for the IPO. Given the discount listing at Rs 876 on NSE, retail investors lost up to Rs 384 per lot.