Tech Explained: AI company Fractal’s IPO subscribed 2.66 times on final day of bidding in Simple Terms

India’s first pure-play artificial intelligence (AI) company, Fractal Analytics’ Rs 2,834 crore initial public offering (IPO) was fully subscribed on the final day of bookbuilding, with bids totalling 2.66 times the number of shares on offer. The IPO received a tepid response from public market investors in the first two days.

According to BSE data, the IPO received bids for 49.47 million shares against the 18.57 million shares on sale.

As per the red herring prospectus (RHP), 75% of the IPO has been reserved for qualified institutional buyers (QIBs). The QIB portion was subscribed 4.18 times, with bids for 40.5 million against 9.7 million on sale. The portions reserved for both non-institutional investors (NIIs) and retail individual investors were fully subscribed.

Ahead of its IPO, Fractal Analytics raised Rs 1,248.2 crore from anchor investors.

At the IPO price band of Rs 857-900 per share, Fractal is valued at around Rs 15,473 crore ($1.71 billion) on a post-money basis at the upper end of the band. The company was last valued at approximately Rs 20,978 crore ($2.44 billion) in July 2025, when it raised $170 million. The company has reduced the overall IPO size by about 42% to Rs 2,834 crore from its earlier plan of Rs 4,900 crore.

In an earlier interaction with ET, Srikanth Velamakanni, cofounder and group CEO of Fractal Analytics, said that public market investors tend to assess AI companies differently from specialised private investors, who are more thematic and spend considerable time understanding the category. He added that the company could have raised capital at a higher valuation in the private markets.