AI solutions provider Fractal Analytics has raised INR 1,248 crore from anchor investors ahead of the opening of its initial public offering (IPO), according to a regulatory filing.

The Bengaluru-based company allotted about 1.38 crore equity shares to anchor investors at INR 900 per share, which is the upper end of the IPO’s price band.

The anchor book saw participation from 52 investors, including a mix of domestic mutual funds, insurance companies and global institutional investors. Of the total shares allotted, around 38% or nearly 52.8 lakh shares were allocated to 11 domestic mutual funds across 22 schemes. These included funds managed by SBI Mutual Fund, ICICI Prudential Mutual Fund, Motilal Oswal Mutual Fund, UTI Mutual Fund, Trust Mutual Fund, Bandhan Mutual Fund, Invesco Mutual Fund, Baroda BNP Paribas Mutual Fund and Sundaram Mutual Fund.

Global institutional investors participating in the anchor round included Morgan Stanley Investment Funds, Ashoka WhiteOak Emerging Markets Funds, Jupiter Global Fund, Goldman Sachs Bank Europe, Societe Generale – ODI, Flumen Investment Trust, Optimix Wholesale Global Emerging Markets Share Trust, Neo Prime Fund and Neo Secondaries Fund. Insurance companies such as Life Insurance Corporation of India (LIC), HDFC Life Insurance, SBI Life Insurance, Bharti AXA Life Insurance and Edelweiss Life Insurance also took part.

SBI Small Cap Fund and LIC emerged as among the largest domestic participants, while overseas investors such as Morgan Stanley, Goldman Sachs, Amundi, Kuwait Investment Authority and Allspring Global were among the prominent global names in the anchor book.

The IPO has a price band of INR 857–900 per share, valuing the company at around USD 1.6 billion at the upper end. The issue is scheduled to open for subscription on February 9 and close on February 11.

According to the red herring prospectus, the size of Fractal’s public issue has been reduced by about 42% to INR 2,834 crore from the INR 4,900 crore proposed in its draft offer document filed last year. The revised IPO consists of a fresh issue of shares worth INR 1,023.5 crore and an offer for sale (OFS) of INR 1,810.4 crore by existing shareholders, including Quinag Bidco, TPG Fett Holdings and GLM Family Trust. The company’s promoters are not selling shares as part of the offering.

Proceeds from the fresh issue will be used for inorganic growth, investments in subsidiaries, working capital requirements and general corporate purposes.

Founded in 2000, Fractal provides artificial intelligence and advanced analytics solutions to enterprises across sectors such as consumer goods, retail, healthcare, technology and financial services, with a significant portion of its revenue coming from overseas markets, especially the US. For FY25, the company reported revenue of INR 2,765.4 crore and a profit after tax of INR 220.6 crore.

Kotak Mahindra Capital, Morgan Stanley India, Axis Capital and Goldman Sachs (India) Securities are the book-running lead managers to the issue.