Fractal Analytics files DRHP for Rs 4,900 Cr IPO

AI solutions provider Fractal Analytics has filed its draft red herring prospectus (DRHP) with SEBI to raise up to Rs 4,900 crore through a mix of fresh issue and offer for sale (OFS). 

The IPO will comprise a fresh issue of shares worth Rs 1,279 crore and an OFS of Rs 3,620.7 crore by existing shareholders. Key selling shareholders include Apax Partners-owned Quinag Bidco (Rs 1,463 crore), TPG Fett Holdings (Rs 2000 crore), Satya Kumari Remala and Rao Venkateswara Remala (Rs 29.5 crore), and GLM Family Trust (Rs 129 crore).

According to the DRHP, the company is also considering a pre-IPO placement of up to Rs 255.8 crore, which will reduce the fresh issue size. The equity shares are proposed to be listed on BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

Fractal has appointed Kotak Mahindra Capital, Morgan Stanley, Axis Capital, and Goldman Sachs are the book running lead managers to the issue, while MUFG Intime India is the registrar.

The company plans to use the fresh issue proceeds for funding organic and inorganic growth initiatives, working capital requirements, and general corporate purposes.

As per the DRHP, TPG Fett is the largest external stakeholder with 25.67% followed by Apax Partners-owned Quinag Bidco  which commands 18.78% in the company. GLM Family Trust which owns 15.7% of the cap table.

Fractal operates in the advanced analytics and AI solutions space, serving enterprises across sectors like healthcare, retail, financial services, and technology. Its portfolio includes subsidiaries and brands such as Qure.ai, Asper.ai, Cuddle.ai, and Analytics Vidhya, with a global presence spanning the US, UK, Canada, Australia, and several other markets.

On the financial front, Fractal reported consolidated revenue of Rs 2,765 crore in FY25 from Rs 2,196crore in FY24. Its net profit stood at Rs 220.6 crore in FY25, compared to a loss of Rs 54.7 crore in the previous fiscal ending March 2024. The company attributes this turnaround to strong demand for AI-led decisioning platforms and expansion in key geographies.

Ahead of filing DRHP, Fractal Analytics also raised $172 million (about Rs 1,461 crore) via a secondary share sale in which Apax Partners sold a 6% stake to 22 investors, including Trust Investment Advisors.