Fractal Analytics Cuts IPO Size To ₹2,800 Crore Ahead of First‑Half 2026 Launch

Fractal Analytics is preparing to launch its Initial Public Offering (IPO) in the first half of 2026 as reported by CNBC TV18. The enterprise Artificial Intelligence (AI) company has revised its IPO size to ₹2,800 crore from the earlier ₹4,900 crore target.

The offering will comprise both a fresh issuance of shares and an Offer for Sale (OFS) by existing shareholders. The IPO is expected to value the company at an ₹18,000 crore market capitalisation.

IPO Structure and Fundraising Details

The IPO will include a fresh issue worth ₹1,000 crore, with the remaining portion raised through an OFS. This change reflects a calibrated fundraising strategy while retaining scope for broader investor participation.

The company aims to balance capital infusion with shareholder divestment through this structure. The adjusted size positions the company for a stable market debut while maintaining its long‑term growth plans.

Company Background and Pre‑IPO Funding

Fractal Analytics is known for providing enterprise AI solutions across global markets. In June 2025, the company raised ₹1,700 crore from high net‑worth individuals (HNIs) in a pre‑IPO round.

This pre‑IPO infusion strengthened the company’s balance sheet and supported its expansion pipeline ahead of the public offering. It also helped the company optimise its IPO structure and capital requirements.

Use Of Proceeds as Per DRHP

According to the Draft Red Herring Prospectus (DRHP), proceeds from the fresh issue will support multiple strategic initiatives. A portion will be invested in Fractal USA for pre‑payment or scheduled repayment of borrowings.

Funds will also be allocated for purchasing laptops and setting up new office premises in India. Additional allocations include investments in R\&D, sales and marketing through Fractal Alpha, as well as financing inorganic growth, acquisitions and general corporate purposes.

Bankers And Market Preparation

Morgan Stanley, Goldman Sachs, Kotak Mahindra Capital and Axis Capital have been appointed as bankers to the issue. Their involvement supports the company’s efforts to execute a well‑structured market listing.

These institutions will assist in managing investor engagement, regulatory compliance and the overall execution timeline. Their combined expertise signals a robust preparation for the impending public offering.

Read More: SEBI Introduces Closing Auction Session to Enhance Equity Market Price Discovery.

Conclusion

Fractal Analytics’ upcoming IPO marks a significant milestone in its growth journey. The company has resized the offer to align with its capital strategy while retaining a strong market valuation.

Funds raised will support domestic and international expansion, operational enhancement and strategic investments. With experienced bankers on board and a strengthened financial position, the IPO positions Fractal Analytics for its next phase of scale and innovation.

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