Fractal Analytics Scales Down IPO; Sets Price Band at INR 857–900 According to the RHP, the IPO size has been cut by about 42% to INR 2,834 crore from the INR 4,900 crore issue proposed in the draft red herring prospectus (DRHP) filed last year.
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Artificial Intelligence (AI) solutions provider Fractal Analytics has filed its red herring prospectus (RHP) with the capital markets regulator, reducing the size of its proposed initial public offering (IPO) compared to what was outlined earlier in its draft papers.
According to the RHP, the IPO size has been cut by about 42% to INR 2,834 crore from the INR 4,900 crore issue proposed in the draft red herring prospectus (DRHP) filed last year. The revised public issue will consist of a fresh issue of equity shares worth INR 1,023.5 crore and an offer for sale (OFS) of shares amounting to INR 1,810.4 crore by existing shareholders.
The company said that proceeds from the fresh issue will be used for multiple purposes, including funding inorganic growth opportunities, investments in subsidiaries, meeting working capital requirements, repayment of certain borrowings, investments in technology and strategic initiatives, and general corporate purposes.
As part of the OFS, Quinag Bidco Ltd, an investment vehicle managed by Apax Partners, will account for 48.6% of the total shares on offer, selling shares worth INR 881 crore. TPG Group and GLM Family Trust will also pare their holdings, each offering shares worth INR 450 crore through the issue.
Fractal has scheduled the anchor book opening for February 6, while the IPO will open for public subscription on February 9 and close on February 11.
The company has set a price band of INR 857 to INR 900 per equity share. At the upper end of the price band, Fractal is expected to be valued at around USD 1.6 billion.
Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal Analytics provides AI and advanced analytics solutions to global enterprises. Its client base spans sectors such as consumer goods and retail, technology, media and telecom, healthcare and life sciences, and banking, financial services and insurance. The company counts Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla among its clients.
The RHP shows that TPG Fett is the largest external shareholder with a 25.49% stake in the company, followed by Quinag Bidco with 18.64%. GLM Family Trust holds a 15.59% stake.
Axis Capital, Citigroup, Morgan Stanley and Kotak Mahindra Capital Company are the book-running lead managers to the issue. Fractal's equity shares are proposed to be listed on both the BSE and the NSE.
