IPO Alert: SEBI approves ₹4,900 crore IPO, know what the company does?

News Topical, Digital Desk : Fractal Analytics, a global provider of enterprise AI solutions, on Monday (November 24) received approval from the Securities and Exchange Board of India (SEBI) for its proposed ₹4,900 crore IPO.

IPO Structure

The IPO comprises a fresh issue of up to ₹1,279.3 crore of equity shares and an offer for sale (OFS) of up to ₹3,620.7 crore. OFS Details The offer by the selling shareholders includes:
 

• Quinag Bidco Ltd – ₹1,462.6 crore
• TPG Fett Holdings Pte. Ltd – ₹1,999.6 crore
• Satya Kumari Remala and Rao Venkateswara Remala – ₹29.5 crore
• GLM Family Trust – ₹129 crore

What will the company do with the funds raised from the IPO?

The company will use the proceeds to invest in its US entity, Fractal USA, to prepay debt, to purchase laptops and set up new office facilities in India, to expand R&D, sales, and marketing activities, and to fund inorganic growth initiatives such as acquisitions and strategic expansion. Company Background Fractal was founded in 2000 by Srikanth Velamakkannni and Pranay Agarwal. The company provides AI and data-driven solutions across various sectors, such as consumer packaged goods and retail, technology, media, and telecom, healthcare and life sciences, banking, financial services, and insurance (BFSI). It is backed by major global investors such as TPG, Apax, and Gaja. Business Performance Overview The company's operating income grew by 25.9% to ₹2,765 crore in FY25 (FY24: ₹2,196 crore). In FY25, the company reported a net profit (PAT) of ₹22 crore, compared to a loss of ₹5.47 crore in FY24. PAT margin increased from 0.2% to 12.6%. EBITDA margin increased from 10.6% to 17.4%. Key Global Clients of the Company As of March 31, 2025, Fractal served the following major companies: Microsoft, Apple, Nvidia, Alphabet (Google), Amazon, Meta, Tesla Issue Managers The book running lead managers for this IPO are:
 

• Kotak Mahindra Capital
• Morgan Stanley India
• Axis Capital
• Goldman Sachs (India) Securities

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