Fractal Analytics IPO Sees Muted Demand with 27 Percent Subscription on Day 3 Despite Strong Anchor Investors and Aggressive Valuation

Fractal Analytics IPO Sees Muted Demand

The initial public offering (IPO) of AI and analytics firm Fractal Analytics has experienced weak interest so far, with the issue subscribed 0.27 times as of 11:45 am on Day 3.

Subscription Details

• Qualified Institutional Buyers (QIBs): The portion reserved for QIBs was subscribed 0.08 times.
• Non-Institutional Investors (NIIs): The NIIs segment was subscribed 0.35 times.
• Retail Individual Investors (RIIs): The RIIs category fared relatively better, garnering 0.72 times subscription.
• Employee Quota: The employee quota was subscribed 0.27 times.

IPO Details

The ₹2,834 crore IPO of AI solutions provider Fractal Analytics opens for subscription on February 8 and will close today (February 11).

Grey Market Performance

Fractal Analytics' stock is at a flat GMP of ₹3, indicating a muted listing of ₹903, against the issue price of ₹900, according to grey market tracking platform Chitorgarh.

Valuation and Rating

At the upper price band of ₹900, Fractal Analytics is valued at a post-issue P/E of 67.4x, indicating aggressive pricing. The valuation is backed by strong growth expectations in enterprise AI, a premium Fortune 500 client base, and long-term industry tailwinds.

However, citing the elevated valuation, an evolving profitability profile, and execution risks in a fast-changing AI market, Angel One has assigned a ‘Neutral’ rating to the issue.

Anchor Investor Funding

Ahead of the issue, the company raised ₹1,248.26 crore from anchor investors, which include Morgan Stanley Investment Funds, Goldman Sachs Bank Europe, Societe Generale (ODI), SBI Mutual Fund, and ICICI Prudential Mutual Fund, among others.