Mumbai, 10 February 2026 — Fractal Analytics, one of India’s highest-profile enterprise artificial intelligence (AI) companies, continued its initial public offering (IPO) on its second day of subscription, drawing mixed reactions from investors as enthusiasm met market caution. The offer, which opened on 9 February and closes on 11 February, has showcased notable participation from retail segments but also a sliding Grey Market Premium (GMP), prompting debate over valuation and near-term listing expectations. 

Subscription Momentum: Robust Retail, Moderate Overall Interest

By the second day of bidding, the Fractal Analytics IPO — sized at ₹2,834 crore — had achieved an overall subscription of around 11 % of the total shares on offer, according to exchange data. The subscription pace suggests active interest from individual investors, particularly within the retail category, which has filled nearly 46 % of its reserved quota. 

Qualified Institutional Buyers (QIBs) and non-institutional investors, however, have been less aggressive, resulting in slower overall uptake compared with some recent IPOs. The price band for the issue is set between ₹857 and ₹900 per share, with a minimum application size typically requiring multiple lots. 

AI Pure-Play Positioning: Long-Term Potential vs Near-Term Caution

Fractal Analytics is widely positioned as India’s first pure-play enterprise AI company aiming to list on the stock market — a unique proposition that distinguishes it from traditional IT services players. The company provides data analytics and AI solutions to global clients, and its business saw a strong performance turnaround in recent financial years. 

For example, in FY25, Fractal reported ₹2,765.4 crore in revenue, up from ₹2,196.3 crore a year earlier, accompanied by a net profit of ₹220.6 crore compared with a loss in the previous year. This improved profitability underscores structural operational gains and greater investor interest in AI-driven models. 

Brokerage houses and financial analysts have generally recommended a “Subscribe” stance on the IPO for investors with a longer-term focus, citing the company’s strategic positioning within the global AI cycle and its diversified revenue profile spanning sectors such as consumer goods, healthcare, technology and financial services. 

GMP Trends: Sentiment Softens Ahead of Listing

A key market indicator — the Grey Market Premium (GMP) — has shown a notable decline over the past days, reflecting a cooling of speculative sentiment. The GMP, which once suggested a healthy listing premium, has eroded significantly and is now low compared with earlier expectations. This shift suggests that traders in the informal grey market are pricing in a more conservative listing scenario. 

Grey Market Premium first surged ahead of the IPO launch, driven by early excitement around Fractal’s AI credentials and potential scarcity value — but declines indicate that valuation concerns and broader market cautiousness are influencing sentiment as bids progress. 

Valuation Considerations and Investor Outlook

One of the key talking points among market participants is the valuation multiple implied by the IPO price band. At the upper band of ₹900, the price-to-earnings ratio (P/E) stands at a relatively higher level compared with traditional peers, reflecting both the premium attached to AI growth prospects and questions over near-term return potential. Analysts suggest that long-term investors with a 3-5-year horizon may benefit if Fractal continues to scale its AI product portfolio and global customer base. 

However, near-term volatility — as seen in the GMP slide and cautious institutional participation — indicates that short-term listing gains may be limited, and investors are evaluating broader market conditions alongside IPO specifics. 

Next Steps and Listing Timeline

The Fractal Analytics IPO will remain open for subscription until 11 February 2026, and the share allotment is expected around 12 February, with an anticipated listing on the stock exchanges by mid-February. The upcoming days of bidding and sentiment shifts in both official and grey markets will be closely watched for insights into investor confidence and pricing dynamics ahead of the debut.