Fractal Analytics IPO, an artificial intelligence solutions provider, is the latest new issue that investors are awaiting in the mainboard category to open its public issue next week.
The company’s initial public offering (IPO) will open for subscription on February 9, and shares of the company in the grey market are trading at a premium ahead of the issue.
With the IPO just days away and GMP gaining momentum, let’s take a look at the key details every investor should understand before the offer opens.
Fractal Analytics IPO: Timeline and key dates to track
Fractal Analytics will open its IPO for bidding on Monday, February 9, and close on Wednesday, February 11. The company’s shares are scheduled to be listed on the National Stock Exchange (NSE) and BSE on February 16.
Ahead of the public issue, bidding by anchor investors will take place on February 6,
After the completion of the bidding, the basis of allotment is expected to be finalised on February 12.
Fractal Analytics IPO: Issue size and price band
The IPO is a Rs 2,833.90 crore book-built issue. It is a mix of fresh issue and OFS – fresh issue of shares worth Rs 1,023.50 crore, along with an offer for sale (OFS) of Rs 1,810.40 crore by existing shareholders.
The price band has been fixed at Rs 857-900 per share.
Breaking it down, at the upper end of the band, the company is valued at around Rs 15,500 crore. The retail investors can apply in a minimum lot of 16 shares, and in multiples thereafter.
Fractal Analytics IPO: What is the grey market saying so far?
Grey market activity around the Fractal Analytics IPO has picked up after the price band announcement.
According to the latest available updates, the company’s unlisted shares are trading at a premium of around 11%. This indicates an estimated listing price of Rs 1,005.
However, it is important to note that this is not the official listing price and may fluctuate based on the market sentiment.
Fractal Analytics IPO: Where will the IPO money be used?
Talking of the fund utilisation, the money raised through the fresh issue will largely be used to support Fractal’s growth plans.
Furthermore, the company plans to invest in its US subsidiary, Fractal USA, mainly to repay or prepay borrowings.
Other uses include setting up new offices in India, purchasing laptops and technology infrastructure, increasing spending on research and development, strengthening sales and marketing under its Fractal Alpha platform, funding future acquisitions, and meeting general corporate needs.
Shares sold through the OFS will not bring funds into the company, as that money will go to existing investors.
Fractal Analytics IPO: Who is selling shares in the offer for sale?
The offer for sale includes stakes from existing shareholders such as Quinag Bidco, TPG Fett Holdings, GLM Family Trust, and the promoters’ family trusts.
The company is backed by global private equity investors including TPG, Apax, and Gaja.
Fractal Analytics IPO: About the company
The company was founded in the year 2000 by Srikanth Velamakanni and Pranay Agrawal. The company works with large global companies to help them make sense of data.
It provides end-to-end artificial intelligence and analytics solutions. This help businesses improve decision-making, customer engagement, and operational efficiency.
Furthermore, the company serves clients across sectors such as consumer goods, retail, banking, financial services and insurance, healthcare, life sciences, technology, media and telecom.