The Securities and Exchange Board of India has approved the draft initial public offering of Fractal Analytics. This marks the first public offering by an artificial intelligence focussed company in India. The approval was confirmed through a notification on the regulator’s website on Monday.
The IPO is valued at forty nine billion rupees which is about five hundred and sixty three million dollars. It includes a fresh issue of up to twelve point seven nine billion rupees and an offer for sale of shares worth thirty six point two one billion rupees by existing investors.
The company plans to use the funds to repay debt at its United States subsidiary. It will also set up new offices in India and invest in research and development with a strong focus on generative artificial intelligence. The Chief Executive Officer Srikanth Velamakanni had said last week that the company plans to maintain high research spending ahead of the listing.
Almost three quarters of the IPO will allow major investors to exit. TPG Fett Holdings aims to sell shares worth up to twenty billion rupees. Apax Partners’ Quinag Bidco plans to sell shares worth up to fourteen point six three billion rupees.
The Mumbai based artificial intelligence and analytics company works with some of the world’s largest technology and consumer firms. These include Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla according to the draft documents.
The co founders Srikanth Velamakanni who is the group CEO and Pranay Agrawal who is the CEO, along with their families, together hold around twenty per cent of the company. They are not taking part in the offer for sale.
The book running lead managers for the IPO include Morgan Stanley India, Goldman Sachs India, Kotak Mahindra Capital and Axis Capital.
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