The Fractal Analytics IPO had created a lot of buzz in the market. With no big AI pure play in the Indian markets, there was anticipation about the IPO even before the IPO dates were announced. However, 2 days into the IPO bidding, the response is definitely muted and hardly matches the buzz before.
The response from investors suggests that excitement around artificial intelligence has not translated into aggressive buying. As the bidding is underway, Fractal Analytics IPO was subscribed just 0.13 times overall by midday on Day 2.
Fractal Analytics IPO: Subscription numbers reflect selective appetite
The IPO opened on February 9 and will close on February 11. The allotment is expected on February 12 and listing tentatively scheduled for February 16 on both the BSE and NSE.
As of the latest available data, the IPO has been subscribed only a fraction of times. Retail investors have shown some interest. Similarly, non-institutional investors have also been selective, while institutional participation remains absent.
By the time of writing, retail investors had subscribed 0.52 times, non-institutional investors 0.13 times, while qualified institutional buyers (QIBs showed zero participation).
Fractal Analytics IPO: Grey market premium collapses as IPO opens
Unofficial grey market signals have mirrored the muted sentiment. Before the price band announcement, the GMP climbed to Rs 180, implying a 20% premium over the issue price. By February 4, it stood at Rs 165, before sliding rapidly.
In the days leading up to the issue, GMP fell to Rs 90 on February 5, Rs 99 on February 6, and Rs 47 on February 7.
Once the IPO opened, the premium dropped sharply to Rs 14 on February 9 and further to Rs 8 on February 10.
At this level, the implied listing price is around Rs 908, a gain of just 0.89% over the upper band of Rs 900.
Fractal Analytics IPO: Brokerages divided on valuation comfort
Brokerage opinions reflect this split. Deven Choksey Research noted that Fractal operates in an environment “highly prone to technological disruptions,” but expects revenue, EBITDA and PAT to grow at 18%, 46%, and 62%, respectively, over the next two years. Based on this, it estimates a forward FY28 P/E of around 22x, leaving room for long-term tracking.
However, valuation remains the central concern for others. Anand Rathi highlighted that, based on annualised FY26 earnings, the company is seeking a P/E of 79 times, describing the issue as “richly priced.” The brokerage also warned that increased insourcing by clients, especially with the rise of AI tools, could impact Fractal’s business model over time.
Geojit Investments echoed similar caution, noting that at the upper price band of Rs 900, the IPO is valued at elevated multiples on both historical and forward earnings. While it acknowledged the company’s global client base, it recommended the issue only for investors with a higher risk appetite and a long-term investment horizon.
Fractal Analytics IPO: Price band and issue size
Fractal Analytics has set a price band of Rs 857-900 per share, with a lot size of 16 shares. This translates to a minimum retail investment of Rs 14,400 at the upper end.
Through this public offering, the company aims to raise Rs 2,833.90 crore. It comprises of a fresh issue of Rs 1,023.50 crore (1.14 crore shares) and an offer-for-sale of Rs 1,810.40 crore (2.01 crore shares).
Fractal Analytics IPO: IPO timing amid IT sector sell-off
The muted response also comes at a time when Indian IT stocks are under pressure. Concerns around agentic AI tools potentially replacing outsourced services have weighed on large-cap IT names, erasing billions of rupees in market capitalisation.
This broader sectoral uncertainty has made investors more cautious about AI-led service companies.
Conclusion
For now, the data suggests that institutional investors are choosing patience over momentum. With 0.00x QIB subscription, a sharply lower GMP, and elevated valuation multiples, there is still a day more for the subscription to close and know the exact participation.