Fractal Analytics raises Rs 1,248 crore via anchor book ahead of Rs 2,834-crore IPO; SBI MF, LIC being largest investors

Fractal Analytics IPO News

• Fractal Analytics IPO raising Rs 1,023.5 crore via fresh shares, Rs 1,810.4 crore via OFS
• Price band for the offer at Rs 857-900 per share
• IPO to open on February 9, close on February 11

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Enterprise artificial intelligence company Fractal Analytics has raised Rs 1,248.3 crore from 52 anchor investors on February 6, a day before the Rs 2,834-crore IPO opening for subscription.

The Apax Partners, and TPG-backed company is raising Rs 1,023.5 crore by issuing fresh shares, while four shareholders will be selling shares worth up to Rs 1,810.4 crore via offer-for-sale. The price band for the offer has been fixed at Rs 857-900 per share.

The public issue will open for public subscription on February 9 and close on February 11, followed by the finalisation of IPO share allotment on February 12. Fractal shares will be available for trading on the bourses effective February 16.

The company on Friday has finalised allocation of 1.38 crore equity shares to anchor investors at the upper price band.

SBI Small Cap Fund, and Life Insurance Corporation of India were the largest investors in the anchor book, investing Rs 104.99 crore, and Rs 99.99 crore, respectively.

Marquee global investors - Morgan Stanley, Amundi Funds, Goldman Sachs, Kuwait Investment Authority, Ashoka WhiteOak, Allspring Global Investments, Societe Generale, Prudent Investment Flexicap Scheme, and Integrated Core Strategies - also participated in the anchor book.

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"Out of the total allocation of 1.38 crore equity shares, 52.77 lakh shares were allocated to 11 domestic mutual funds including ICICI Prudential AMC, Motilal Oswal AMC, UTI AMC, Trust MF, Baroda BNP Paribas MF, Bandhan MF, Invesco India, Sundaram MF, Abakkus, and Union MF," Fractal Analytics said.

Apart from LIC, HDFC Life Insurance Company, SBI Life Insurance, Bharti Axa Life Insurance, and Edelweiss Life Insurance also invested in the company via anchor book, buying Rs 150.93 crore worth shares.

Fractal Analytics that supports global enterprises with data-driven insights and assists them in their decision making through end-to-end AI solutions will spend Rs 264.9 crore of fresh issue proceeds for repaying debt of subsidiary Fractal USA, Rs 57.1 crore for purchase of laptops, and Rs 121.1 crore for setting-up new office premises in India.

Further, Rs 355.1 crore will be utilised for research and development; and sales and marketing under Fractal Alpha, and the remainder funds for inorganic growth through unidentified acquisitions, and general corporate purposes.

Kotak Mahindra Capital Company, Axis Capital, Morgan Stanley India Company, and Goldman Sachs (India) Securities are acting as the merchant bankers for the Fractal Analytics IPO.