The initial public offering (IPO) of Fractal Analytics sailed through on the final day of bidding, with the issue subscribing 2.66 times, driven by strong institutional participation. In contrast, the public issue of MSME-focused lender AYE Finance witnessed relatively moderate demand and was booked 97% by the close of the subscription period.

The two issues, collectively aiming to raise about ₹3,844 crore, opened for subscription on February 9 and closed on February 11. The shares of both companies are expected to be listed on the BSE and NSE on February 16, 2026.

Institutional demand boosts Fractal Analytics IPO

The Fractal Analytics IPO witnessed robust demand from qualified institutional buyers (QIBs), as quota reserved for them subscribed 4.18 times. The segment received bids for 4,05,55,344 shares against 97,10,268 shares on offer. Mutual funds led institutional participation with bids for 2,75,44,144 shares, followed by foreign institutional investors (FIIs) at 88,88,800 shares, domestic financial institutions at 21,94,416 shares and other institutional investors at 19,27,984 shares.

The non-institutional investor (NII) segment was booked 1.06 times, with bids for 51,27,088 shares against 48,55,134 shares reserved. The retail individual investor (RII) portion was subscribed 1.03 times, with bids for 33,21,456 shares against 32,36,756 shares on offer. The employee quota saw comparatively lower demand, being subscribed 0.61 times.

Fractal Analytics, a global artificial intelligence and advanced analytics company, had fixed a price band of ₹857–₹900 per share for its ₹2,833.90-crore IPO. The issue comprises a fresh issue of ₹1,023.50 crore and an offer for sale (OFS) worth ₹1,810.40 crore. At the upper end of the price band, the company is targeting a valuation of approximately ₹15,473.6 crore.

According to its draft prospectus, the company plans to utilise the proceeds towards debt reduction, capacity expansion and growth initiatives. This includes an investment of ₹264.90 crore in its subsidiary Fractal USA for loan repayment, ₹57.10 crore for procurement of laptops, and ₹121.10 crore for setting up new office facilities in India. Additionally, ₹355.10 crore will be invested in research and development and sales and marketing initiatives under its Fractal Alpha platform, while the remaining funds will be used for inorganic growth opportunities and general corporate purposes.

AYE Finance IPO falls short of full subscription

The ₹1,010-crore IPO of AYE Finance saw moderate investor response and was subscribed 0.97 times overall. The QIB portion was subscribed 1.50 times, receiving bids for 3,72,41,220 shares against 2,48,36,065 shares reserved. FIIs led institutional demand with bids for 2,84,56,308 shares, followed by mutual funds at 42,75,064 shares, domestic financial institutions at 21,70,708 shares and other investors at 23,39,140 shares.

Retail participation in AYE Finance remained relatively muted, with the segment subscribing 0.77 times after receiving bids for 63,56,452 shares against 82,78,688 shares reserved. The NII category witnessed weak participation and was subscribed only 0.05 times.

The AYE Finance IPO comprises a fresh issue of 5.50 crore shares aggregating to ₹710 crore and an offer for sale of 2.33 crore shares worth ₹300 crore. The issue is priced in the band of ₹122–₹129 per share, with a lot size of 116 shares.

Incorporated in 1993, AYE Finance operates as a non-banking financial company (NBFC) focused on lending to micro-scale MSMEs. The company provides secured and unsecured working capital loans, mortgage-backed loans and hypothecation-based credit across manufacturing, trading, services and allied agriculture sectors. It currently serves around 5.86 lakh active customers across 18 states and three Union Territories.

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