TLDR: Fractal Analytics, a leading artificial intelligence and analytics services provider, has filed its draft papers for an Initial Public Offering (IPO) aiming to raise ₹4,900 crore. This move positions the Mumbai and New York-headquartered company to become India’s first pure-play AI firm to be listed on the stock exchanges, with a potential valuation exceeding $3.5 billion. The IPO includes a fresh issue of shares worth ₹1,279 crore and an offer for sale of ₹3,621 crore by existing investors.
Fractal Analytics, a prominent player in the artificial intelligence and analytics sector, is gearing up for a significant Initial Public Offering (IPO) with an aim to raise ₹4,900 crore. This highly anticipated listing is poised to mark a historic moment as Fractal becomes India’s first pure-play AI company to go public. The proposed IPO could value the company at more than $3.5 billion, reflecting strong investor interest in the burgeoning AI landscape .
The public issue is structured to include a fresh issue of equity shares aggregating up to ₹1,279 crore, alongside an offer for sale (OFS) of equity shares totaling ₹3,621 crore by existing shareholders . Key investors participating in the OFS include TPG Fett Holdings Pte. Ltd., which plans to sell shares worth ₹2,000 crore, and Apax Partners-owned Quinag Bidco, offering shares worth ₹1,463 crore. Other selling shareholders include Satya Kumari Remala and Rao Venkateswara Remala (₹29.5 crore), and GLM Family Trust (₹129 crore) . The company may also consider a pre-IPO placement of up to ₹255.8 crore, subject to regulatory approvals .
The net proceeds from the fresh issue are earmarked for strategic investments, including debt repayment for its US subsidiary, establishing new office premises in India, significant investments in research and development, bolstering sales and marketing efforts under Fractal Alpha, and funding inorganic growth initiatives .
Fractal Analytics has demonstrated robust financial performance, reporting a 25.9% year-on-year increase in revenue from operations to ₹2,765 crore for the fiscal year 2025. The company also saw a remarkable turnaround in profitability, with profit after tax soaring to ₹220 crore in FY25, compared to a loss of ₹54.7 crore in FY24. Both PAT and EBIDTA margins experienced a positive uptick, reaching 12.6% and 17.4% respectively .
Co-founded in 2000 by five graduates of the Indian Institute of Management Ahmedabad, Fractal achieved unicorn status (a valuation exceeding $1 billion) in 2022 . The company is currently led by Group Chief Executive Officer Srikanth Velamakanni and Fractal CEO Pranay Agrawal, who each own approximately 10% of the company and are not divesting any stake in the IPO .
Fractal’s global customer base includes industry giants such as Citigroup Inc., Royal Philips NV, Nestle SA, Tesla Inc., and Apple Inc. . The company specializes in providing AI products and services designed to enhance operational efficiency, facilitate new product development, and build sustainable supply chains for enterprises. Notably, Fractal has partnered with OpenAI to develop generative AI solutions and has submitted bids under the IndiaAI Mission to develop indigenous healthcare large language models and large reasoning models .
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Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited, and Goldman Sachs (India) Securities Private Limited are serving as the book running lead managers for the IPO . The company aims to list on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) by December, according to sources . This landmark IPO is also anticipated to create over 100 new ‘crorepatis’ among its employees, similar to the impact seen with Freshworks’ listing .
