Fractal Analytics IPO Listing: Shares Debut 2.67% Lower at ₹876 on NSE Amid Valuation Concerns

StartupTalky News

16 Feb 2026 — 3 min read

Fractal Analytics IPO Listing: Shares Debut 2.67% Lower at ₹876 on NSE Amid Valuation Concerns

Fractal Analytics, one of India’s best-known artificial intelligence and advanced analytics companies, made a muted stock market debut on 16 February 2026, with its shares listing below the IPO price on the major exchanges.

On the National Stock Exchange (NSE), shares opened at ₹876, reflecting a 2.67% discount to the upper end of the IPO price band of ₹900 per share. On the Bombay Stock Exchange (BSE), the stock listed flat at ₹900 but soon slipped below the issue price during early trade.

The weak listing meant investors who were allotted shares at the top price band saw a modest notional loss on listing day. The debut was largely in line with the grey market trend, which had indicated limited listing gains ahead of the IPO’s close.

Fractal Analytics IPO Timeline, Subscription and Fund Utilisation

The Fractal Analytics IPO opened for subscription on 9 February 2026 and closed on 11 February 2026. The price band was fixed at ₹857 to ₹900 per share.

The company raised ₹2,833.90 crore, comprising:

₹1,023.50 crore through a fresh issue
₹1,810.40 crore through an offer for sale (OFS) by existing shareholders, including Venkateswara Remala and TPG

The issue was subscribed to 2.66 times overall. Qualified institutional buyers (QIBs) led demand with a subscription of 4.18 times, while retail and non-institutional investor categories saw relatively muted participation, each subscribing close to one time.

Anchor investors committed approximately ₹1,248 crore on 6 February 2026, providing institutional backing ahead of the public issue.

Allotment was finalised on 12 February, refunds were initiated shortly after, and shares were credited to demat accounts by 13 February. The stock was listed on both NSE and BSE on 16 February 2026.

The company stated that proceeds from the fresh issue will be used to:

Repay or prepay borrowings of subsidiary Fractal USA
Invest in infrastructure, including new offices in India
Purchase laptops and equipment
Fund research and development initiatives
Support sales and marketing, including Fractal Alpha
Pursue inorganic growth opportunities
Meet general corporate requirements

The IPO lot size was 16 shares, meaning a minimum retail investment of approximately ₹14,400 at the upper price band.

Post-listing, Fractal Analytics’ market capitalisation stood at around ₹15,477 crore.

Valuation Concerns Weigh on Listing Despite AI Growth Story

Market participants attributed the subdued listing partly to valuation concerns. At the upper price band, the company was valued at a post-IPO price-to-earnings (P/E) multiple of around 109 times and a price-to-book ratio of approximately 8.65.

While Fractal has reported steady revenue growth, some investors appeared cautious about pricing levels amid broader volatility in technology and AI-linked stocks.

Grey market premium (GMP) trends before listing were largely flat, signalling limited expectation of immediate listing gains.

Fractal Analytics Business Overview and Financials

Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal Analytics provides enterprise AI and data-driven decision solutions across sectors, including retail, technology, banking and healthcare.

The company works with several global corporations and Fortune 500 clients. Its focus is on embedded AI solutions rather than traditional IT services, positioning it as a specialised AI-led analytics firm.

For the most recent financial year, the company reported revenue of approximately ₹2,765 crore and a net profit of around ₹221 crore, although profitability has fluctuated in past years.

Fractal leverages India as a key delivery hub while investing significantly in research and development to build proprietary AI platforms.

Analyst Views and Outlook for Fractal Stock

Market experts have advised a measured approach. Given the relatively high valuation and evolving AI sector dynamics, short-term volatility cannot be ruled out.

Some analysts suggest that long-term investors who believe in the structural growth of AI services may consider holding the stock, while short-term traders should remain cautious due to listing-day weakness and sector sentiment.

As of the close of listing day, shares were trading close to their debut levels, with no sharp recovery seen.

The coming quarters, particularly revenue growth, margin expansion and order wins, are likely to determine whether Fractal Analytics can justify its premium valuation in the public markets.