Fractal Analytics shrinks IPO size as Apax, TPG reduce sell-down
03 Feb 2026, 03:32 PMThe IPO will open for bidding on February 9 and close on February 11. The anchor bidding will take place on February 8.
Team Head&Tale
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Fractal Analytics, which has been touted as India's first AI unicorn set to hit the public markets, has steeply reduced the size of its initial public offering (IPO) by over 40% with the offer for sale (OFS) size halved.
As per the company's red herring prospectus (RHP), Fractal Analytics' total offer size aggregates up to Rs 2,833.9 crore. This is far lower than the earlier planned Rs 4,900 crore, per its draft red herring prospectus (DRHP), which was filed in August last year.
The Head and Tale had done a deep dive into Fractal's DRHP.
Both the size of the fresh issue of shares and OFS have been reduced.
The size of the fresh issue of shares has been cut to Rs 1,023.54 crore, as compared to Rs 1,279.3 crore.
The size of the OFS has been scaled down to just Rs 1,810.4 crore from Rs 3,620.7 crore. As part of the OFS, Apax Partners will now sell shares worth only up to Rs 880.9 crore versus Rs 1,462.6 crore earlier; and TPG will offload shares worth up to Rs 450 crore against Rs 1,999.6 crore.
GLM Family Trust, on the other hand, will offload shares worth Rs 450 crore, which is higher than the originally planned Rs 129 crore.
Its use of net proceeds has remained unchanged as it plans to utilise the funds raised from the IPO for funding inorganic growth through acquisitions, working capital requirements, and general corporate purposes.
The IPO will open for bidding on February 9 and close on February 11. The anchor bidding will take place on February 8.
Fractal, which had received the approval from the IPO from the Securities and Exchange Board of India (SEBI) in November last year, was among the eight entities selected by the Indian government to build indigenous AI models under its AI Mission.
The company's revenue from operations grew 25.9% to Rs 2,765 crore in FY25, compared to Rs 2,196 crore in the previous financial year. It reported a net profit of Rs 220 crore in FY25 against a loss of Rs 54.7 crore in FY24.
Fractal Analytics established its Fractal Sciences” program in 2012 to strengthen its R&D creation and to cater AI demand.
It also built its own foundation models -- Vaidya.ai (medical multi-modal foundation model ecosystem
consisting of LLMs, VLMs and medical reasoning systems) and Fathom-R1-14B (open source large reasoning
foundation model).
The company is investing further in developing reasoning capabilities in foundation models, it added.
The company had also developed its own Generative AI stack in fiscal 2023 and introduced new Gen AI solutions as well as incorporated Gen AI into several of its other existing AI products.
Kotak Mahindra Capital, Morgan Stanley, Axis Capital, and Goldman Sachs are the book running lead managers to the public issue.
Since its establishment in 2000 by co-founders Srikanth Velamakanni and Pranay Agrawal, Fractal has raised a total of $855 million across multiple funding rounds. It had turned into a unicorn in 2022 with a $360 million funding from TPG.
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