# Fractal Analytics IPO Flops Amid AI Jitters in India
Fractal Analytics, India's pioneering AI-focused enterprise, made a disappointing stock market debut on February 16, 2026, listing at a 3% discount to its IPO price amid investor skepticism over AI sector valuations. Shares opened at ₹876 on the NSE against the upper price band of ₹900, signaling caution in a market wary of lofty AI hype despite the company's strong financials and growth prospects.[2][7][8]
IPO Details and Subscription Woes
The Fractal Analytics IPO, valued at ₹2,833.90 crore, opened for subscription on February 9, 2026, and closed on February 11, with allotment finalized on February 12 and listing on BSE and NSE today.[1][3][4] It comprised a fresh issue and offer-for-sale (OFS), priced in the band of ₹857-₹900 per share (face value ₹1), with a lot size of 16 shares requiring a minimum retail investment of around ₹14,400.[3][5][6] Subscription was tepid at 0.23x overall, though qualified institutional buyers (QIBs) oversubscribed at 4.18x, while non-institutional investors showed lukewarm interest at 1.05x.[4][5] Anchor investors infused ₹1,248.25 crore prior to opening, but the muted response highlighted broader market jitters.[1][3]
Listing Performance and Market Reaction
Fractal Analytics shares listed flat in a muted debut, opening at ₹876 on NSE—a 3% discount to the ₹900 issue price—while BSE trading was on a mutual basis.[2][7][8] This flop contrasts with the hype around it being India's first pure-play AI IPO, positioned at the nexus of AI, data analytics, and enterprise transformation.[1][4] Despite raising funds for key uses like investing ₹264.9 crore in subsidiary Fractal USA for debt repayment, ₹355.1 crore for R&D and sales in Fractal Alpha, and infrastructure expansions, investors appeared cautious on elevated valuations for AI growth stocks.[5][6] The asset-light model's FY25 revenue of ₹2,765.4 crore (26% YoY growth) and ₹220.6 crore net profit offered positives, but AI sector uncertainties overshadowed them.[4]
AI Sector Jitters Fueling the Flop
Investor hesitancy stems from AI jitters in India, with concerns over generative AI hype, decision intelligence platforms, and enterprise automation not yet translating to immediate returns amid global tech volatility.[1] As a Mumbai-headquartered firm since 2000 with strong US and Europe presence via long-term contracts, Fractal benefits from healthcare AI expansion and platform monetization, but post-IPO valuations reflect a premium pure-play AI tag over traditional IT services.[1][4] Analysts note gradual price discovery ahead, with medium-term growth potential, yet the listing discount underscores broader sentiment on overvalued AI narratives in emerging markets.[1][7]
Future Outlook for Fractal Analytics Stock
Proceeds will fuel strategic growth, including ₹57.1 crore for laptops/tech hardware, ₹121.1 crore for new India offices, and inorganic initiatives totaling ₹225.3 crore.[5][6] Retail investors (capped at 13 lots or ₹1,87,200) and employees (with ₹85 discount) saw limited uptake, pointing to selective interest.[1][3] While the debut flop raises short-term sell pressure, Fractal's AI-driven solutions for global enterprises position it for recovery if sector tailwinds materialize.[1][4]
Frequently Asked Questions
What was the Fractal Analytics IPO price band and lot size?
The price band was **₹857-₹900 per share**, with a lot size of **16 shares**; minimum retail investment was approximately **₹14,400**.[1][3][5]
How much was subscribed in the Fractal Analytics IPO?
Overall subscription stood at **0.23x to 2.66x**, with QIBs at **4.18x** and non-institutional at **1.05x**.[4][5]
At what price did Fractal Analytics shares list on debut?
Shares listed at **₹876** on NSE, a **3% discount** to the ₹900 IPO price, in a muted market debut.[2][7][8]
What are the key uses of proceeds from the Fractal Analytics IPO?
Funds include **₹264.9 crore** for Fractal USA debt repayment, **₹355.1 crore** for R&D/sales in Fractal Alpha, **₹121.1 crore** for new offices, and more for hardware and growth initiatives.[5][6]
When did the Fractal Analytics IPO open and close?
The IPO opened on **February 9, 2026**, and closed on **February 11, 2026**, with listing on **February 16, 2026**.[1][3][4]
What is Fractal Analytics' business focus?
Fractal Analytics specializes in **enterprise AI and advanced analytics**, delivering decision intelligence solutions with FY25 revenue of **₹2,765.4 crore** and profit of **₹220.6 crore**.[1][4]
🔄 Updated: 2/16/2026, 12:10:16 PM
Fractal Analytics' IPO **debuted at a nearly 3% discount to its issue price** on its listing day, signaling weak market reception despite strong institutional backing during the subscription phase[3]. The offering achieved only **1.65x total subscription**, with stark divergence in investor appetite—Qualified Institutional Buyers drove demand at 4.85x oversubscription while retail investors showed minimal interest at just 0.22x, reflecting cautious sentiment amid AI sector concerns[1]. The company's valuation was set at approximately **Rs 15,473 crore**, representing a 26% discount to its last private market valuation, yet even this discounted entry point failed to attract broader
🔄 Updated: 2/16/2026, 12:20:18 PM
**Fractal Analytics IPO lists at 3% discount amid AI sector caution in India.** Shares debuted at ₹876 on NSE and ₹873 on BSE, below the ₹900 issue price, signaling "cautious sentiment" despite 2.66x overall subscription driven by 4.18x QIB interest, per Samco analysis[2]. Experts note the pricing reflected a 26% cut from the prior Rs 15,473 crore private valuation, highlighting "balanced debut rather than aggressive" amid jittery AI market reception with weak retail at 1.03x[5][2].
🔄 Updated: 2/16/2026, 12:30:19 PM
Fractal Analytics' IPO listing delivered a **disappointing debut**, with shares opening at ₹876 on NSE and ₹873 on BSE—a **3% discount to the ₹900 issue price**—signaling investor caution despite strong institutional demand during the subscription phase.[2] The technical weakness on listing day contrasts sharply with the IPO's 2.66x overall subscription, where Qualified Institutional Buyers led with 4.18x oversubscription while retail investors showed more hesitation at 1.03x, reflecting a market bifurcation between institutional confidence and retail skepticism.[2] The listing price implies the stock entered the market
🔄 Updated: 2/16/2026, 12:40:15 PM
**Fractal Analytics IPO Flops with Retail at Just 0.22x Subscription Amid AI Jitters**
Consumer and public reaction turned cautious, with **retail investors subscribing at a dismal 0.22x** and small HNIs at **0.50x**, while big HNIs reached only **0.81x**, signaling widespread skepticism over the AI firm's **52x PE valuation** and single-digit PAT margins.[1][2][4] Social media buzz labels it a "must-win flop," with users quoting, **"18-20% growth not exciting in AI world"**, as the Rs 2,834 crore issue limped to **1.65x total** driven solely by QIBs a
🔄 Updated: 2/16/2026, 12:50:16 PM
**LIVE NEWS UPDATE: Fractal Analytics IPO flops amid AI jitters in India**
Fractal Analytics' ₹2,833.90 crore IPO, aiming to raise ₹1,023.50 crore via fresh shares and ₹1,810.40 crore through an offer-for-sale, ended with tepid early bidding—showing just 0.78% GMP gain at ₹7 on February 11—amid investor concerns over high valuations despite its status as India's first AI firm with a strong client list, as flagged by SBI Securities[2]. Globally, the flop has sparked caution in AI listings, with international observers linking it to broader jitters over execution risks and third-party service dependencies in AI deployments
🔄 Updated: 2/16/2026, 1:00:21 PM
**Fractal Analytics IPO Update: Muted Debut Sparks AI Sector Concerns**
Fractal Analytics shares listed at a 3% discount (₹876 on NSE, ₹873 on BSE) to the ₹900 issue price, closing down 7% at ₹873.70 amid broader **AI jitters** in India, with the ₹2,834 crore IPO—slashed over 40% pre-launch—subscribed just 2.66x overall despite 4.18x QIB demand[1][2][3]. Experts note the 26% valuation cut from its $2.4B private mark signals "cautious sentiment on debut day" in a market wary of AI volatility, as institutional confidenc
🔄 Updated: 2/16/2026, 1:10:18 PM
**Fractal Analytics' market debut disappointed investors as shares fell 7% from their ₹900 issue price to close at ₹873.70, giving India's first AI unicorn to go public a market capitalization of approximately ₹148.1 billion ($1.6 billion)—well below its July 2025 private valuation of $2.4 billion.[2] The stock listed at ₹876 on the NSE, opening at a 3% discount despite the IPO receiving 2.66 times overall subscription, with strong institutional demand (4.18 times for QIBs) offset by cautious retail participation (1.03
🔄 Updated: 2/16/2026, 1:20:19 PM
**Fractal Analytics shares slumped 7% on debut**, with the stock listing at 876 rupees per share—below its 900 rupee issue price—and closing at 873.70 rupees, valuing India's first AI unicorn to go public at approximately 148.1 billion rupees (1.6 billion dollars), well below its recent 2.4 billion dollar private valuation[2]. The muted market reception came despite the IPO receiving 2.66 times overall subscription during the bidding phase, with strong institutional backing at 4.18 times oversubscription among qualified institutional buyers, signaling investor caution over AI sector uncertainty[
🔄 Updated: 2/16/2026, 1:30:21 PM
**Fractal Analytics IPO Update: Competitive AI Landscape Shifts as Stock Falls 7% on Debut**
Fractal Analytics, India's first pure-play AI firm to list, debuted at ₹876 per share—below its ₹900 issue price—and closed at ₹873.70, slashing its market cap to ₹14,810 crore from a pre-IPO private valuation of $2.4 billion[3][6]. This flop amid AI sector skepticism underscores intensifying competition, with Fractal's FY25 P/E ratio of 67.37x pricing it at a premium to Nifty peers while revenue grew 26% to ₹2,765 crore, signaling investor caution as global AI giants eye India's market[3][5].
🔄 Updated: 2/16/2026, 1:40:18 PM
**Fractal Analytics IPO Flops on Debut Amid AI Jitters in India**
Fractal Analytics shares listed at **₹876** on NSE and BSE this morning, a **3% discount** to the ₹900 issue price, before sliding further to close at **₹873.70**, down **7%** from the issue price and giving the company a market cap of **₹148.1 billion** ($1.6 billion).[2][5][6] The muted debut reflects investor caution over AI hype amid a recent sell-off in Indian software stocks, following a 40% cut in the IPO size to **₹2,834 crore** on banker advice.[5] TechCrunch noted the listin
🔄 Updated: 2/16/2026, 1:50:20 PM
**Fractal Analytics IPO Lists with Minimal Gains Despite AI Sector Positioning**
Fractal Analytics, India's first AI firm to go public, listed today with a modest 0.78% gain after its Rs 2,833.90 crore IPO closed with tepid investor interest[2]. The Gray Market Premium (GMP) had collapsed from Rs 180 on February 3 to just Rs 7 by the final bidding day, signaling weak demand despite the company's strong client roster, with SBI Securities flagging valuation concerns about the issue[2]. The weak reception reflects broader investor skepticism about AI sector valuations in India, as the IPO faile
🔄 Updated: 2/16/2026, 2:00:27 PM
**LONDON/BENGALURU** – Fractal Analytics' IPO, aiming to raise Rs 2,833.90 crore including a Rs 1,810.40 crore offer-for-sale, closed on Feb. 11 with tepid early bidding that reflected **AI jitters** among investors, as SBI Securities flagged "valuation concerns" despite the firm's impressive client list and status as India's first AI unicorn to list.[2] Globally, the flop—marked by a Grey Market Premium dropping from Rs 180 to just Rs 7 by Feb. 11, signaling a meager 0.78% listing gain—has heightened caution in AI sectors, with international funds like those tracking Indian tech pulling back amid fear
🔄 Updated: 2/16/2026, 2:10:17 PM
**LIVE NEWS UPDATE: Fractal Analytics IPO Flops Amid AI Jitters – Global Ripples Emerge**
Fractal Analytics' shares plunged 7% on debut, closing at ₹873.70 against the ₹900 issue price, slashing its market cap to $1.6 billion—well below its prior $2.4 billion private valuation—prompting global investors to reassess AI firm listings in emerging markets[3][6]. International analysts highlighted the muted response from U.S. subsidiary repayments and R&D funding plans as red flags, with one report noting "cautious sentiment despite marquee global clients" amid India's AI push at the New Delhi AI Impact Summit[1][2][3]. European funds echoed concerns
🔄 Updated: 2/16/2026, 2:20:22 PM
Fractal Analytics' IPO listing debuted at a **3% discount** to its ₹900 issue price, opening at ₹876 on NSE and ₹873 on BSE, signaling cautious market sentiment despite institutional strength[3]. Market analysts cited the company's valuation as a key concern, with one assessment deeming the **52x PE multiple on FY26E estimated PAT unattractive** compared to IT services peers typically valued at 25-30x, while Fractal's 18-20% revenue growth and single-digit PAT margin appeared uninspiring in the rapidly evolving AI landscape[2]. The IPO achieved 2
🔄 Updated: 2/16/2026, 2:30:27 PM
**NEW DELHI** – No specific regulatory or government response has emerged from SEBI or other authorities following Fractal Analytics' IPO debut today, where shares listed at a 3% discount (₹876 on NSE, down ₹24 from the ₹900 issue price) amid AI sector jitters[1][5][6]. The IPO, which raised ₹2,840.16 crore via an Offer for Sale, proceeded smoothly after regulatory clearances, with no reported interventions despite broader market concerns over AI disruptions like Anthropic's "Cowork" launch that erased ₹2.5 lakh crore from the Nifty IT index[1][2]. SEBI's recent nod to NSE's delayed IPO on January 30 highlights ongoing scrutin