Fractal Analytics, an AI solutions company backed by TPG, Apax, and Gaja, has filed for a substantial Rs 4,900 crore IPO with the Securities and Exchange Board of India (Sebi).

The IPO comprises a fresh issue of equity shares valued up to Rs 1,279.3 crore and an Offer for Sale (OFS) worth Rs 3,620.7 crore, as outlined in the draft red herring prospectus submitted on August 12, 2025.

Major shareholders are participating in the OFS, with Quinag Bidco selling shares worth ₹1,462.6 crore and TPG Fett Holdings offloading ₹1,999.6 crore.

Fractal reported a 26% increase in revenue for FY25, reaching Rs 2,765 crore, alongside a profit turnaround to Rs 22 crore from a loss of Rs 5.47 crore in FY24.

The company's financial performance is bolstered by a diverse client base, serving 113 multinational clients including Citibank and Nestlé.

Fractal's revenue streams are globally diversified, with 70% from the U.S., 20% from Europe, and 10% from emerging markets, as it focuses on localizing AI solutions.

The company emphasizes ethical AI, which positions it favorably against regulatory challenges, while its financial discipline enhances stability amid market volatility.

Proceeds from the IPO will be allocated for various purposes, including investing in its U.S. subsidiary, repaying debts, establishing new offices in India, and enhancing research and development.

Despite facing competition from major firms like Accenture and Google, Fractal maintains a competitive edge through proprietary AI products and deep vertical expertise.

The IPO will follow a book building process, with allocations of 75% for Qualified Institutional Buyers, 15% for Non-Institutional Investors, and 10% for Retail Individual Investors.

The IPO is being managed by a consortium of financial institutions, including Kotak Mahindra Capital Company, Morgan Stanley, Axis Capital, and Goldman Sachs.