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Decoding the Fractal Analytics IPO: Opportunity in Enterprise AI
The Indian capital markets are buzzing with the upcoming Initial Public Offering (IPO) of Fractal Analytics Ltd., a significant player in the global Enterprise AI and analytics space. For investors looking to capitalize on the accelerating digital transformation wave, this IPO presents a compelling opportunity to gain exposure to a high-growth sector. This comprehensive analysis breaks down everything you need to know about Fractal Analytics’ public offering, from the company’s core business to the critical dates and financial metrics.
Partnering for Success:
Understanding Fractal Analytics: AI for Intelligent Decisions
Fractal Analytics, established in the year 2000, has carved a niche as a leading global firm specializing in Artificial Intelligence and advanced analytics solutions. They partner with Fortune 500 companies to embed intelligence into their operations, enabling smarter, data-driven decisions.
Business Segments and Core Offerings
As of the latest reporting period (Sep 30, 2025), Fractal structures its robust offerings across two primary divisions:
- Fractal.ai: This segment focuses on delivering AI services and products via its proprietary agentic AI platform, Cogentiq. This platform emphasizes streamlined product development through built-in governance, low-code accessibility, and robust security features.
- Fractal Alpha: This division manages standalone AI businesses aimed at capturing high-growth markets. These are run independently to foster innovation across diverse industries and global geographies.
Competitive Edge in the AI Landscape
The company highlights several key strengths that position it favorably in the competitive AI market:
- Leadership in a rapidly expanding global AI market.
- Deep, enduring relationships with prominent, blue-chip global clients, ensuring revenue diversification.
- A potent combination of integrated technical, functional, and domain expertise.
- A proven history of innovation and strategic investment benefiting clientele.
- A management philosophy centered on transparency, trust, and nurturing talent, driven by experienced founders with a long-term vision.
Major clients leveraging Fractal’s expertise include well-known names like Citibank (Citi), Costco, Mondelez, Nestle, and Philips, among others.
Fractal Analytics IPO: Key Subscription Details
The Fractal Analytics IPO is structured as a Book Building issue, involving both a Fresh Issue of shares and an Offer For Sale (OFS). This dual structure indicates a capital infusion for the company’s growth plans alongside an opportunity for existing shareholders to partially divest.
The Financial Snapshot: IPO Structure and Size
| Metric | Details |
|---|---|
| Issue Type | Bookbuilding IPO |
| Total Issue Size | 3,14,87,777 Shares (Agg. up to ₹2,834 Cr) |
| Fresh Issue Size | 1,13,72,222 Shares (Agg. up to ₹1,023 Cr) |
| Offer for Sale (OFS) Size | 2,01,15,555 Shares (Agg. up to ₹1,810 Cr) |
| Price Band | ₹857 to ₹900 per Equity Share |
| Face Value | ₹1 per share |
| Listing Exchanges | BSE and NSE |
IPO Timeline: Marking Your Calendar
It is crucial to adhere to the tentative schedule for bidding and allotment processes. Remember, the dates provided are based on the initial filings.
| Activity | Tentative Date |
|---|---|
| IPO Opens for Subscription | Monday, February 9, 2026 |
| IPO Closes for Subscription | Wednesday, February 11, 2026 |
| Basis of Allotment Finalization | Thursday, February 12, 2026 |
| Initiation of Refunds / Credit to Demat | Friday, February 13, 2026 |
| Tentative Listing Date | Monday, February 16, 2026 |
For a visual representation of the IPO process flow:
Investment Requirements: Understanding Lot Sizes
Investment requirements vary based on the category of investor. The minimum investment anchors around the upper price band of ₹900 per share.
| Investor Category | Lots Applied | Shares | Minimum Investment (Approx.) |
|---|---|---|---|
| Retail Individual Investor (RII) | 1 (Minimum) | 16 | ₹14,400 |
| S-HNI (Up to ₹10 Lakhs) | 14 (Minimum) | 224 | ₹2,01,600 |
| B-HNI (Above ₹10 Lakhs) | 70 (Minimum) | 1,120 | ₹10,08,000 |
Note: Retail investors are eligible to bid up to a maximum investment of ₹2 Lakhs, while employees receive a special discount, often capped at an application amount of ₹5 Lakhs.
Valuation and Financial Health Assessment
Evaluating the company’s financial health and valuation multiples is crucial before committing capital. The pre-IPO valuation suggests a premium positioning given its AI focus.
Company Financial Performance (Restated Consolidated)
Here is a summary of the key financial figures (Amounts in ₹ Crore):
| Financial Metric | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Total Income | 1,594.30 | 2,816.20 | 2,241.90 | 2,043.70 |
| Profit After Tax (PAT) | 70.90 | 220.60 | -54.70 (Loss) | 194.40 |
| EBITDA | 185.60 | 398.00 | 97.20 | 436.80 |
| Total Borrowing | 274.60 | 266.20 | 250.10 | 325.60 |
Key Performance Indicators (KPIs) Check
Analyzing profitability margins provides insight into operational efficiency:
| KPI | Sep 30, 2025 | Mar 31, 2025 |
|---|---|---|
| Return on Net Worth (RoNW) | 3.6% | 12.6% |
| PAT Margin | 4.50% | 8.00% |
| EBITDA Margin | 11.90% | 14.40% |
Valuation Metrics Comparison
The valuation metrics post-IPO highlight market perception relative to earnings:
| Metric | Pre-IPO EPS (Rs) | Post-IPO EPS (Rs) | P/E Ratio (x) |
|---|---|---|---|
| Valuation | 13.74 | 8.25 | 65.51 (Pre) / 109.12 (Post) |
The calculated Price-to-Book Value post-IPO stands at 8.65x.
Ownership Structure and Promoters
The promoter group holds a significant stake, indicating strong promoter confidence in the future prospects.
- Promoter Holding Pre-Issue: 18.19%
- Post-Issue Market Capitalization: Approximately ₹15,473.60 Cr.
- Founders: The company is steered by experienced founders, including Srikanth Velamakanni, Pranay Agrawal, Chetana Kumar, Narendra Kumar Agrawal, and Rupa Krishnan Agrawal.
IPO Objectives: Where the Proceeds Go
Understanding the use of the Net Proceeds is vital for assessing management’s strategic focus. The funds are earmarked for both domestic expansion and international debt management.
| Object of the Issue | Estimated Amount (₹ Cr.) |
|---|---|
| Pre-payment/Repayment of Borrowings (Fractal USA Subsidiary) | 264.90 |
| Setting-up New Office Premises in India | 121.10 |
| Investment in R&D and Sales/Marketing (Fractal Alpha) | 355.10 |
| Purchase of Laptops | 57.10 |
| Inorganic Growth, Strategic Initiatives, and General Corp. Purposes | To be determined |
Stakeholder Ecosystem: Key Intermediaries
The success and smooth functioning of an IPO rely heavily on the expertise of its advisors and administrative bodies.
- Book Running Lead Managers (BRLMs): Kotak Mahindra Capital Co. Ltd. and Axis Capital Ltd. will oversee the issue management.
- Registrar to the Issue: MUFG Intime India Pvt. Ltd. is appointed to handle the administrative tasks, allotment, and refund processing.
SWOT Analysis of Fractal Analytics IPO
A balanced perspective requires an assessment of the company’s inherent Strengths, Weaknesses, Opportunities, and Threats related to this market entry.
Strengths
- Strong brand equity and long-term client retention.
- Deep integration of technical skills with essential business domain knowledge.
- Founder-led structure focusing on long-term value creation.
Weaknesses
- Recent fluctuation in PAT margin (as seen between Mar 2025 and Sep 2025).
- Vast potential for expansion in global AI adoption across all sectors.
- Funding secured for inorganic growth and new market penetration.
- Intense competition from established global tech giants and specialized AI startups.
- Rapid technological obsolescence necessitating continuous heavy R&D investment.
- Global economic shifts impacting corporate IT and analytics spending.
- Log in to your broker’s back-office portal (e.g., Console).
- Navigate to the ‘IPOs’ section in your portfolio.
- Locate the ‘Fractal Analytics IPO’ row and select the ‘Bid’ option.
- Input your UPI ID, the required quantity (minimum 16 shares), and bid price.
- Submit the application and ensure you approve the UPI mandate within your UPI application promptly.
Aye Finance
Aye Finance IPO Analysis: Everything You Need to Know Before You Invest Unlocking Opportunities: Deep Dive into the Aye Finance IPO
The Indian primary market continues to buzz with activity, and the upcoming Aye Finance IPO is generating considerable interest among investors. As a leading player in the MSME lending space, Aye Finance’s public offering represents a significant moment for the company and potential investors looking for growth-oriented financial sector plays. This comprehensive analysis breaks down every crucial aspect of this Mainboard IPO to help you make an informed decision.
Understanding Aye Finance: Business Overview
Established in 1993, Aye Finance Limited operates as a Non-Banking Financial Company (NBFC). Its core business revolves around providing secured and unsecured small business loans tailored for working capital requirements, primarily targeting micro-scale MSMEs.
The company caters to a broad spectrum of needs within the manufacturing, trading, service, and allied agriculture sectors. Their loan solutions are often secured by working assets or property.
Key Focus Areas and Reach:
- Currently serving over 586,825 active customers.
- Operations span across 18 states and three union territories in India.
Core Product Portfolio:
- Mortgage Loans
- ‘Saral’ Property Loans
- Secured Hypothecation Loans
- Unsecured Hypothecation Loans
Aye Finance IPO: Key Subscription Details and Timeline
The Aye Finance IPO is structured as a Bookbuilding issue, aiming to raise a substantial amount through a mix of a fresh issue of shares and an Offer for Sale (OFS).
IPO Structure Summary:
The total issue size aggregates up to ₹1,010.00 Crores. This is composed of:
- Fresh Issue: 5.50 crore shares aggregating up to ₹710.00 crores (Capital infusion for company growth).
- Offer for Sale (OFS): 2.33 crore shares aggregating up to ₹300.00 crores (Existing shareholders monetizing a portion of their stake).
Indicative IPO Timetable (Tentative Schedule)
Investors should note these dates as crucial benchmarks for application, allotment, and listing.
Milestone Tentative Date IPO Opens for Subscription Monday, February 9, 2026 IPO Closes Wednesday, February 11, 2026 Allotment Finalization Thursday, February 12, 2026 Initiation of Refunds / Credit of Shares to Demat Friday, February 13, 2026 Tentative Listing Date (BSE, NSE) Monday, February 16, 2026 Price Discovery and Investment Requirements
The price band for the IPO has been set to allow for wide participation:
- Price Band: ₹122 to ₹129 per equity share.
- Face Value: ₹2 per share.
Lot Size Breakdown for Bidders
The minimum investment for retail participation is calculated based on the upper price band.
Investor Category Minimum Lots Shares per Lot Minimum Investment (₹) Retail Investor (Minimum Application) 1 116 ₹14,964 Small NII (sNII – Minimum) 14 1,624 ₹2,09,496 Big NII (bNII – Minimum) 67 7,772 ₹10,02,588 IPO Reservation Allocation
The allocation across different investor categories is crucial for understanding subscription pressure points:
Investor Category Shares Offered Allocation Qualified Institutional Buyers (QIB) Not less than 75% of the Net Offer Retail Individual Investors (RII) Not more than 10% of the Net Offer Non-Institutional Investors (NII) Not more than 15% of the Net Offer Company Valuation and Financial Health Snapshot
Assessing the company’s pre-IPO valuation against its financial performance provides critical context for the offering price.
Pre-IPO Valuation Metrics
- Pre-IPO Market Capitalization: Approximately ₹3,183.52 Crore.
- Earnings Per Share (EPS) Post Issue: ₹5.24 (Annualized based on recent earnings).
- Price-to-Earnings (P/E) Ratio Post Issue: 24.64x.
Historical Financial Performance (Amount in ₹ Crore)
Reviewing the restated financials shows the trajectory of the company’s scale and profitability.
Metric 30 Sep 2025 (6M) 31 Mar 2025 (FY) 31 Mar 2024 (FY) Total Assets 7,116.01 6,338.63 4,869.59 Total Income 863.02 1,504.99 1,071.75 Profit After Tax (PAT) 64.60 175.25 171.68 Total Borrowing 5,218.50 4,526.33 3,498.99 Key Performance Indicators (KPIs) Check
Profitability and leverage ratios offer insights into operational efficiency:
KPI Sep 30, 2025 Mar 31, 2025 Return on Equity (ROE) 7.63% 12.12% Debt/Equity Ratio 3.02 2.73 Strengths, Weaknesses, Opportunities, and Threats (SWOT Analysis)
Understanding the internal and external factors influencing Aye Finance is vital for long-term prospects.
Competitive Advantages (Strengths)
- It is recognized as a prominent lender focusing on small-ticket loans for micro-scale MSMEs, addressing a large, underserved market segment.
- The company possesses strong sourcing capabilities, supported by a wide pan-India operational presence and high customer retention rates.
- Effectiveness is driven by a robust underwriting methodology and multi-tiered collection capabilities.
- Access to a diversified base of lenders ensures cost-effective financing avenues.
Internal and External Considerations (Weaknesses & Threats)
- High dependence on borrowing for funding asset growth translates to significant leverage, reflected in the Debt/Equity ratio.
- As an NBFC, the company remains susceptible to tightening credit conditions and evolving regulatory frameworks in the financial sector.
- Intense competition exists from other established NBFCs and fintech players targeting the same MSME segment.
Key Stakeholders in the IPO Process
The involvement of experienced intermediaries ensures the smooth execution and compliance of the public issue.
Book Running Lead Managers (BRLMs)
The successful management of the IPO rests with experienced firms:
- Axis Capital Ltd.
- IIFL Capital Services Ltd.
- JM Financial Ltd.
- Nuvama Wealth Management Ltd.
Registrar to the Issue
Handling investor records, allotment, and refunds:
Registrar Name: Kfin Technologies Ltd.
Contact Numbers: 040-67162222, 040-79611000
Email: ayefinance.ipo@kfintech.com
Understanding Application Methods for Retail Investors
Investors typically apply through brokers using either the ASBA route (through net banking) or the UPI mandate system.
Steps for Applying via a Broker (General Guidance)
While specific platforms vary, the process generally involves these core steps:
- Log in to your chosen stock broker’s online portal or application.
- Navigate to the IPO section.
- Select the Aye Finance IPO and choose your investor category (Retail).
- Enter the required bid quantity (minimum 116 shares) and your desired price (cut-off or specific price within the band).
- If using UPI, enter your UPI ID and approve the payment mandate sent to your UPI application.
- Confirm and submit the application before the closing date.
Company Contact and Administrative Details
Aye Finance Ltd. Corporate Information
Registered Address: M-5, Magnum House-I, Community Centre, Karampura, New Delhi, 110015
Phone: +91 124 484 4000
Email: secretarial@ayefin.com
Website: https://www.ayefin.com/
Final Takeaway on the Aye Finance Public Offering
The Aye Finance IPO offers a chance to invest in a seasoned NBFC deeply entrenched in the MSME lending segment, a sector with significant untapped potential in India. The company boasts strong operational metrics and a focused product portfolio. However, potential subscribers must weigh the inherent risks associated with financial leverage and sector competition against the growth prospects presented by the fresh capital raise. Thoroughly reviewing the Red Herring Prospectus (RHP) and tracking subscription figures closer to the closing date will be paramount for a well-rounded investment decision.
Opportunities
Threats
Navigating the Application Process: Guidance for Retail Investors
If you plan to participate, the application process is simplified through digital methods like UPI or ASBA. For those using a popular discount broker like Zerodha, the steps involve familiarizing oneself with their dedicated IPO console.
Applying via a Brokerage Platform (Example: Zerodha Users)
It is generally advised for RIIs to apply at the cut-off price to maximize allotment chances within their budget.
Contact Information & Next Steps
For direct reference to regulatory documents or official communication:
| Entity | Contact Detail |
|---|---|
| Registrar Phone | +91-22-4918 6270 |
| Registrar Email | fractal.ipo@in.mpms.mufg.com |
| Company Contact (Investor Relations) | investorrelations@fractal.ai |
| Company Address | Level 7, Commerz II, International Business Park, Oberoi Garden City, Off W. E. Highway, Goregaon (E), Mumbai, Maharashtra, 400063 |
Conclusion: Weighing the AI Future
The Fractal Analytics IPO offers investors a chance to invest in a seasoned enterprise AI firm navigating a monumental growth phase. The company’s strong client base and strategic deployment of IPO proceeds towards R&D and expansion suggest future scalability. While the valuation reflects the premium associated with disruptive technology, a thorough review of the subscription status closer to the closing date, alongside market sentiment, will provide the final clarity needed for an informed investment decision.