Promoters, early backers of Fractal Analytics set for windfall gains ahead of IPO

markets

• Fractal Analytics IPO values company at Rs 15474 crore at upper price band
• Promoters and early investors see sharp gains in share value ahead of IPO
• IPO set for Feb 9-11 with smaller issue size and lower price band to attract investors.

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Promoters and early backers of Fractal Analytics Ltd are set for substantial gains as the enterprise artificial intelligence company prepares for its much-anticipated initial public offering. The company has fixed its price band at Rs 857–900 per share, valuing it at around Rs 15,474 crore at the upper end of the band. The weighted average cost of acquisition of all equity shares transacted in the last one year stands at around Rs 83 per share, according to the red herring prospectus.

Co-founders Srikant Velamakanni, Whole-time Director, Group Chief Executive and Executive Vice-Chairman, and Pranay Agrawal, Non-executive Director, are set to clock significant gains from the IPO. Velamakanni currently holds about 74 lakh shares at an average acquisition cost of Rs 65 per share. Following the announcement of the price band, the value of his holding has risen to about Rs 666 crore, compared with Rs 48 crore earlier.

Similarly, Pranay Agrawal, who holds around 81.2 lakh shares at an average cost of Rs 75 per share, has seen the value of his holding jump to around Rs 731 crore from about Rs 75 crore earlier.

Chetana Kumar, Chief Sustainability Officer and Non-executive Director, and Narendra Kumar Agrawal have also seen sharp gains in their holdings. Their stakes are valued at around Rs 574 crore and Rs 537 crore, respectively, at the upper end of the price band, compared with about Rs 60 lakh and Rs 20 lakh earlier.

Among early investors, Apax Partners-managed Quinag Bidco holds around 3.17 crore shares at an average acquisition cost of Rs 173 per share. Post the price band announcement, the value of Quinag Bidco’s holding has surged to around Rs 2850 crore from about Rs 548 crore earlier. TPG Fett Holdings, which holds around 4.33 crore shares at an average cost of Rs 642 per share, has seen the value of its stake rise to about Rs 3896 crore from around Rs 2780 crore earlier.

The IPO will open for subscription on February 9 and close on February 11. The company has reduced the size of the public issue by 42 percent and trimmed the upper end of the price band by 18 percent. The top end of the share price band was earlier pegged at Rs 1110 per share.

According to Srikant Velamakanni, Co-founder and Chief Executive Officer of Fractal Analytics, the revision was based on feedback from bankers and investors aimed at making the IPO more attractive. He said investors indicated a preference to remain invested in the company for a longer period, which resulted in a reduction in the overall issue size.