Fractal Analytics IPO: A Lukewarm Investor Reception

Fractal Analytics' IPO received only 20% subscription by its second day, falling short of expectations. The Rs 2,834-crore offering, which closes on February 11, hopes to attract broader interest despite its reduced size. The funds raised are earmarked for investments, debt repayment, and strategic initiatives.

The initial public offering (IPO) of Fractal Analytics, an artificial intelligence solutions provider, has witnessed a lukewarm response, attracting just 20% subscription by its second day. According to NSE data, the IPO has received bids for only 36,40,320 shares out of the 1,85,79,360 shares on offer.

Retail individual investors showed the highest interest with 60% subscription, while non-institutional investor participation was at 27%. In stark contrast, qualified institutional buyers subscribed to just 2% of the issue. The Rs 2,834-crore public issue aims to conclude by February 11.

The revised offering comes after scaling down from an initial Rs 4,900 crore proposal. Proceeds will fund various investments including in Fractal's subsidiary, Fractal USA, debt repayment, R&D, and other corporate purposes. Fractal's anticipated market debut is scheduled for February 16.