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Fractal IPO to fetch over 5X returns for Apax Partners

EntrackrEntrackr · 12h ago
Fractal IPO to fetch over 5X returns for Apax Partners
Medial

Fractal IPO to fetch over 5X returns for Apax Partners AI solutions provider Fractal Analytics has filed its red herring prospectus (RHP) and announced a price band of Rs 857–900 per equity share for its upcoming initial public offering (IPO). At the upper end of the price band, Fractal’s valuation is expected to be around $1.6 billion. According to its RHP, Fractal has trimmed its IPO size by 42% to Rs 2,834 crore, which comprises fresh issue of shares worth Rs 1,023.5 crore and an offer for sale (OFS) of Rs 1,810.4 crore by existing shareholders. Major shareholders, including Apax Partners, TPG, and GLM Family Trust, will participate in the offer for sale (OFS) and are expected to earn healthy returns on their investments through the initial public offering, as per Entrackr analysis. Quinag Bidco Ltd, owned by Apax Partners, holds an 18.64% stake in the company as of the RHP date and will offload the largest portion of the total OFS by selling shares worth Rs 880.9 crore (around $98 million), generating a 5.2X return on its investment. TPG Capital, which is the largest shareholder in the company with a 25.49% stake, will offload shares worth Rs 450 crore ($50 million), yielding a 1.4 times return. Another major shareholder, GLM Family Trust, which owns a 15.59% stake, will also cash out Rs 450 crore through the OFS. Meanwhile, individuals Satya Kumari Remala and Rao Venkateswara Remala are set to earn Rs 29.5 crore from the IPO, with a bumper 450X return at a weighted average cost of acquisition of just Rs 2 per share. Notably, Fractal co-founders Srikanth Velamakanni and Pranay Agrawal will not participate in the OFS and together hold a 10% stake in the firm. At the upper price band of Rs 900, Srikanth Velamakanni’s 5.17% stake stands valued at Rs 790.4 crore (around $88 million), while Pranay Agrawal’s 4.83% stake valued at Rs 738 crore (about $82 million). Founded in 2000, Fractal supports global enterprises across consumer goods and retail, technology, media and telecom, healthcare and life sciences, and BFSI. It counts Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla as clients. The fresh proceeds from the IPO will be used to fund inorganic growth, invest in subsidiaries, meet working capital requirements, and for general corporate purposes. Axis Capital, Citigroup, Morgan Stanley, and Kotak Mahindra Capital Company are the book-running lead managers to the issue. On the financial front, Fractal posted consolidated revenue of Rs 2,765 crore in FY25, up from Rs 2,196 crore in FY24. The company reported a net profit of Rs 220.6 crore in FY25, reversing a loss of Rs 54.7 crore in FY24. In the first half of FY26, it recorded revenue of Rs 1,559 crore and a profit of Rs 71 crore.

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AI firm Fractal eyes $400-500 million IPO at $3-billion valuation

Economic TimesEconomic Times · 1y ago
AI firm Fractal eyes $400-500 million IPO at $3-billion valuation
Medial

Fractal Analytics, an AI and analytics company, has hired Morgan Stanley, Kotak Mahindra Capital, and Axis Capital as bankers for its upcoming IPO. The IPO is estimated to be worth $400-500 million and could value the company at around $3 billion. The draft red herring prospectus is expected to be submitted to SEBI by late September. The IPO will include both primary and secondary share sales, allowing existing investors such as Apax Partners and Khazanah Nasional Berhad to partially sell their stake. The funds raised will be used for expanding the company's GenAI services portfolio, research and development, global expansion, and pre-payment of existing loans. Fractal Analytics, founded in 2000, focuses on AI, machine learning, and computer vision technologies. In FY23, the company generated operating revenues of Rs 1,985.4 crore and recorded a net profit of Rs 194 crore.

Fractal reduces IPO size by 42% to Rs 2,834 Cr

EntrackrEntrackr · 1d ago
Fractal reduces IPO size by 42% to Rs 2,834 Cr
Medial

Fractal reduces IPO size by 42% to Rs 2,834 Cr Artificial Intelligence (AI) solutions provider Fractal Analytics has filed its red herring prospectus (RHP) with the capital markets regulator, cutting its IPO size from what it had proposed earlier in its draft papers. According to the RHP, Fractal’s public issue has been reduced by 42% to Rs 2,834 crore, from the Rs 4,900 crore IPO outlined in its draft red herring prospectus (DRHP) last year. The revised IPO will comprise a fresh issue of shares worth Rs 1,023.5 crore and an offer for sale (OFS) of Rs 1,810.4 crore by existing shareholders. Proceeds from the fresh issue will be used to fund inorganic growth, invest in subsidiaries, meet working capital requirements, and for general corporate purposes. Quinag Bidco Ltd, an investment vehicle managed by Apax Partners, will account for 48.6% of the total OFS, offloading shares worth Rs 881 crore. Meanwhile, the TPG Group and GLM Family Trust will each sell shares worth Rs 450 crore through the OFS. The company will open anchor bidding on February 6, while the IPO will open on February 9 and close on February 11. Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal supports global enterprises across consumer goods and retail, technology, media and telecom, healthcare and life sciences, and BFSI. It counts Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla as clients. As per the RHP, TPG Fett is the largest external shareholder with a 25.49% stake, followed by Quinag Bidco, owned by Apax Partners, which holds 18.64% of the company. GLM Family Trust owns 15.59% of Fractal. Axis Capital, Citigroup, Morgan Stanley, and Kotak Mahindra Capital Company are the book-running lead managers to the issue. Fractal’s shares are proposed to be listed on both the BSE and NSE. On the financial side, Fractal reported consolidated revenue of Rs 2,765 crore in FY25 from Rs 2,196 crore in FY24. Its net profit stood at Rs 220.6 crore in FY25, compared to a loss of Rs 54.7 crore in FY24. For the first half of FY26, it recorded revenue of Rs 1,559 crore and a profit of Rs 71 crore.

Fractal Analytics raises $170 Mn via secondary sale

EntrackrEntrackr · 6m ago
Fractal Analytics raises $170 Mn via secondary sale
Medial

Fractal Analytics, an AI and advanced analytics solutions provider, has raised $170 million (around Rs 1,461 crore) through a secondary share sale, valuing the company at $2.44 billion. According to ET, Apax Partners exited part of its holding in Fractal by selling 6% to 22 investors, including Trust Investment Advisors and others. The proceeds will be used to fuel R&D, global GenAI expansion, and debt pre-payment. The development comes as Fractal prepares for an IPO to raise $400–$500 million at a valuation of around $3 billion. The company has appointed Morgan Stanley, Kotak Securities, and Axis Securities as its IPO bankers and is preparing to file its draft red herring prospectus (DRHP). Founded by Srikanth Velamakanni and Pranay Agrawal, Fractal has grown into a global leader in AI, machine learning, computer vision, quantum computing, and cognitive automation, with 70% of its revenue from the US. Fractal recently entered the Generative AI space with offerings like Fractal GPT, Flyfish (a digital sales advisor), and Arya (a data science agent). It also introduced Kalaido.ai, India’s first multilingual text-to-image model, launched in 2024. In March this year, Fractal invested $20 million in one of its product companies, Asper.ai, a purpose-built AI for growth platform for consumer goods and manufacturing. Fractal has raised around $855 million to date including a $360 million round, where the Srikanth Velamakanni and Pranay Agrawal-led company turned unicorn. For the fiscal year ended March 2024 (FY24), Fractal's Indian entity reported revenue of Rs 2,196 crore and a loss of Rs 54.7 crore. It currently has over 5,000 employees across 18 global locations, including the USA, Canada, UK, Netherlands, Ukraine, India, Singapore, South Africa, UAE, and Australia.

Fractal sets Rs 857–900 IPO price band, targets $1.6 Bn valuation

EntrackrEntrackr · 20h ago
Fractal sets Rs 857–900 IPO price band, targets $1.6 Bn valuation
Medial

Fractal sets Rs 857–900 IPO price band, targets $1.6 Bn valuation AI solutions provider Fractal Analytics has set a price band of Rs 857–900 per equity share for its upcoming initial public offering (IPO), a day after filing its red herring prospectus (RHP) with the capital markets regulator. According to the RHP, the public issue will open for subscription on February 9 and close on February 11, while the anchor book is scheduled to open on February 6. At the upper end of the price band, Fractal’s valuation is expected to be around $1.6 billion. As reported earlier by Entrackr, Fractal trimmed its IPO size by 42% compared to what it had proposed in its draft red herring prospectus (DRHP). The IPO now comprises a mix of a fresh issue and an offer for sale (OFS) by existing shareholders. According to the RHP, the proceeds from the fresh issue are to be used for debt repayment, investments in technology and strategic initiatives, and general corporate purposes. Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal supports global enterprises across consumer goods and retail, technology, media and telecom, healthcare and life sciences, and BFSI. It counts Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla as clients. As per the RHP, TPG Fett is the largest external shareholder with a 25.49% stake, followed by Quinag Bidco, owned by Apax Partners, which holds 18.64% of the company. GLM Family Trust owns 15.59% of Fractal. Axis Capital, Citigroup, Morgan Stanley, and Kotak Mahindra Capital Company are the book-running lead managers to the issue. Fractal’s shares are proposed to be listed on both the BSE and NSE. On the financial side, Fractal reported consolidated revenue of Rs 2,765 crore in FY25 from Rs 2,196 crore in FY24. Its net profit stood at Rs 220.6 crore in FY25, compared to a loss of Rs 54.7 crore in FY24. For the first half of FY26, it recorded revenue of Rs 1,559 crore and a profit of Rs 71 crore.

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