Fractal Analytics has entered the second day of its ₹2,834-crore initial public offering (IPO), marking a historic moment as India’s first pure-play enterprise AI company to debut on the national exchanges. As of February 10, 2026, the offering is navigating a cautious market environment with localized interest from individual investors. The company has set its price band between ₹857 and ₹900 per share. At the upper limit, the market capitalization is estimated at approximately ₹15,474 crore. The issue is a blend of a fresh capital raise of ₹1,023.5 crore and an offer for sale (OFS) of ₹1,810.4 crore from existing shareholders. Subscription data from the first day shows a total coverage of 9%, with the retail segment leading the momentum at 35% subscription. In contrast, non-institutional and qualified institutional buyers have remained on the sidelines during the initial hours, reflecting a "wait-and-watch" approach common for high-valuation tech entries. Grey market activity suggests a modest sentiment. The Grey Market Premium (GMP) currently stands at approximately ₹8 to ₹10 per share, representing a premium of around 1%. This is a slight dip from earlier estimates of 1.5%, signaling that while there is an expectation of positive listing gains, the market is pricing in the broader volatility seen in global technology stocks. Financially, Fractal Analytics reported a significant turnaround in the latest fiscal year. For FY25, revenue reached ₹2,816.2 crore, a 26% year-on-year increase. More importantly, the company swung to a profit of ₹220.6 crore, recovering from a loss of ₹54.7 crore in the previous period. This shift is supported by an improved EBITDA margin of 17.4%, up from 10.6%. The proceeds from the fresh issue are earmarked for global expansion, specifically for its U.S. subsidiary, and for scaling its "Fractal Alpha" division, which focuses on independent, product-led AI businesses. Market analysts view this IPO as a long-term play on the AI sector. While traditional IT services face pressure, pure-play AI firms are valued on their ability to integrate agentic AI into enterprise decision-making. Investors should note the high valuation of approximately 65.5x P/E (post-issue), which places the stock in a premium bracket compared to traditional tech providers. The bidding process concludes on February 11, 2026, with the final allotment expected by February 12. The official listing on the BSE and NSE is scheduled for February 16, 2026. This debut will serve as a critical benchmark for the appetite for high-growth AI ventures in the Indian primary market.