Fractal Analytics’ Rs 2,834 crore IPO, which opens on February 9 and closes on February 11, comprises a fresh issue of Rs 1,023 crore and an offer for sale of Rs 1,810 crore by existing shareholders. Founded in 2000, the company has built a global enterprise AI and decision intelligence franchise, with more than 65% of its revenue coming from the US and a client roster that includes some of the world’s largest technology and consumer companies.
The IPO is being keenly tracked not just as a listing event, but as a rare chance for public market investors to buy into a scaled AI business at a time when traditional IT services stocks are under pressure.
Co-founder and CEO Srikanth Velamakanni holds 73,95,590 shares acquired at an average cost of Rs 65 per share. At the IPO price of Rs 900, the value of his stake stands at about Rs 666 crore. Against a total acquisition cost of roughly Rs 48 crore, this translates into an absolute gain of about Rs 618 crore. In percentage terms, Velamakanni is sitting on returns of around 1,285%.
Co-founder Pranay Agrawal owns 81,21,360 shares, acquired at an average cost of Rs 75 per share. His holding is valued at nearly Rs 731 crore at the IPO price. With an investment of about Rs 61 crore, Agrawal’s absolute gain works out to around Rs 670 crore, implying returns of around 1,100%.
The gains are even more dramatic for early promoter shareholders who entered at near-zero costs.
Chetana Kumar holds 63,77,155 shares acquired at just Rs 1 per share. At Rs 900, her stake is valued at about Rs 574 crore. Against an initial outlay of roughly Rs 6.4 crore, this represents an absolute gain of nearly Rs 568 crore and a staggering return of around 89,900%.
Narendra Kumar Agrawal holds 59,62,180 shares acquired at an average cost of just Rs 0.4 per share. His stake is worth about Rs 537 crore at the IPO price, compared with an acquisition cost of just about Rs 2.4 crore. This results in absolute gains of around Rs 535 crore and percentage returns of more than 224,000%, underlining the scale of wealth creation achieved by the earliest backers.
Marquee institutional investors participating in the offer for sale are also locking in substantial gains, though at more moderate multiples compared with the founders.
Quinag Bidco holds 3,16,66,210 shares acquired at an average cost of Rs 173 per share. At the IPO price, its holding is valued at around Rs 2,850 crore. With an original investment of roughly Rs 548 crore, Quinag’s absolute gain stands at about Rs 2,302 crore, translating into returns of nearly 420%.
TPG Fett Holdings Pte, an affiliate of global private equity major TPG, holds 4,32,92,610 shares acquired at an average cost of Rs 642 per share. At Rs 900, this stake is valued at about Rs 3,896 crore. Against an acquisition cost of roughly Rs 2,780 crore, the absolute gain is around Rs 1,116 crore, implying returns of about 40%.