**INDIA’S FIRST PURE-PLAY AI IPO: FRACTAL ANALYTICS SETS THE STAGE** Fractal Analytics has officially announced the price band for its upcoming Initial Public Offering, positioning itself as India’s first listed company dedicated exclusively to artificial intelligence and decision analytics. This landmark issuance is set to test investor appetite for deep-tech enterprises in the domestic primary market. **IPO Snapshot and Valuation** The Mumbai-based firm has fixed a price band of **₹857 to ₹900** per equity share. At the upper end of this band, the company targets a market valuation of approximately **₹14,450 crore ($1.60 billion)**. Investors can bid for a minimum of **16 equity shares** per lot, translating to a minimum investment of **₹14,400** for retail participants. The total issue size stands at **₹2,834 crore**, comprising a fresh issue of **₹1,023.5 crore** and an Offer for Sale (OFS) of **₹1,810.4 crore** by existing shareholders and promoters. **Strategic Adjustments and Market Positioning** Notably, the final issue size reflects a calibration to current market conditions. Fractal reduced its IPO size by approximately **42%** from the originally planned **₹4,900 crore**. Despite the reduction, the offering remains a significant event for the Indian tech sector, backed by marquee global investors including **TPG, Apax Partners, and Gaja Capital**. As a "pure-play" AI entity, Fractal differentiates itself from traditional IT services firms by focusing heavily on **decision intelligence**. The company leverages AI to help Fortune 500 clients—including **Microsoft, Apple, and Nvidia**—make high-stakes business decisions. **Financial Performance: Turning the Corner** Fractal’s financials show a trajectory of improving profitability. For the fiscal year ended March 31, 2025 (FY25), the company reported a revenue growth of nearly **26%**, reaching **₹2,765 crore**. Significantly, it swung to a profit after tax (PAT) of **₹22 crore**, recovering from a loss of **₹5.47 crore** in FY24. More recent data indicates sustained momentum. For the six months ended September 30, 2025 (H1 FY26), Fractal recorded a net profit of **₹70.9 crore**, though this represented a marginal dip of **2.7%** compared to the same period in the previous year. The EBITDA margin has also seen improvement, climbing to **17.4%** in FY25, driven by better operating leverage. **Grey Market Sentiment** Early indicators from the unlisted arena suggest cautious optimism. Market sources report a Grey Market Premium (GMP) hovering around **₹175–180** per share. This implies a potential listing gain of approximately **20%** over the upper price band, though these figures are dynamic and subject to broader market volatility. **Capital Utilization Plans** The proceeds from the fresh issuance are earmarked for strategic growth and debt reduction. Key allocations include: * **₹264.9 crore** for repayment of borrowings in its U.S. subsidiary. * **₹355.1 crore** for investment in research and development (R&D) and sales expansion. * **₹121.1 crore** for setting up new office infrastructure in India. * **₹225.3 crore** for inorganic growth opportunities and general corporate purposes. **Key Dates to Watch** * **Anchor Investor Bidding:** Friday, February 6, 2026 * **IPO Opens:** Monday, February 9, 2026 * **IPO Closes:** Wednesday, February 11, 2026 * **Allotment Finalization:** Thursday, February 12, 2026 * **Refund Initiation:** Friday, February 13, 2026 * **Listing (BSE & NSE):** Monday, February 16, 2026 This offering marks a pivotal moment for the Indian stock exchanges, potentially paving the way for more specialized AI and deep-tech listings in the near future.