Ahead of IPO, Fractal Analytics Shrinks Issue Size by 40%

Enterprise artificial intelligence firm Fractal Analytics has cut the size of its initial public offering (IPO) by over 40% to $313.6 ‍million, ahead of the launch of ​the issue next week.

The Mumbai-based firm, set to become India's first listed pure-play AI company, trimmed the IPO size to ₹2,834 crore from ₹4,900 crore, according to its red herring prospectus released on Monday.

The ​IPO comes in a subdued primary market this year. Only three companies launched mainboard IPOs in India in January, down from 10 in December, amid weak market conditions driven by trade and geopolitical tensions.

However, investment bankers expect 2026 to be a milestone year for India's primary market, following two consecutive years of record fundraising.

Fractal Analytics' IPO comprises a fresh issue of up to ₹1,024 crore and offer-for-sale of ₹1,810 crore by existing investors.

The company will launch the IPO for retail investors on February 9, the prospectus showed, while anchor investors can submit bids on February 6.

Bidding will close on February 11.

Founded in 2000, the AI and analytics company counts some of the world's largest technology and ‌consumer firms, including Microsoft, Apple, Nvidia, Alphabet, ​and Tesla, among its clients. Fractal Analytics' co-founders—group CEO Srikanth Velamakanni and CEO Pranay Agrawal—along with their families, own about 20% of the company ‍and ‌are not participating ​in the offer-for-sale.

The company will use the proceeds to repay ‍debt at its US subsidiary, set up new offices in India and fund research ‍and ‍development, with a ‌focus on generative AI.

Nearly two-thirds of the IPO will involve big investors trimming their stakes, with TPG Fett Holdings seeking to offload shares worth up to ₹450 crore and Quinag Bidco planning to sell shares worth up ‍to ₹881 crore.

In FY25, the AI company earned consolidated revenue of Rs 2,765 crore and registering a profit of Rs 220 crore.