Fractal Analytics Becomes First AI Company to Receive SEBI Approval for 4900 Crore IPO

The Securities and Exchange Board of India has officially given its green light to the initial public offering proposal of Fractal Analytics paving the way for the countrys first AI focused company to list on the stock exchanges This significant regulatory approval marks a major milestone for the Indian tech sector as Fractal Analytics plans to raise approximately 4900 crore rupees through this public issue which combines a fresh issue of equity shares with an offer for sale by existing shareholders. Along with Fractal the market regulator also issued observation letters to two other prominent firms Amagi Media Labs and Sahajanand Medical Technologies allowing them to proceed with their own listing plans which indicates a renewed surge in primary market activity The observation letter from SEBI is widely considered as the final regulatory clearance required before a company can launch its IPO and tap into public capital.Fractal Analytics which recently achieved unicorn status is backed by major global private equity firms including TPG Capital and Apax Partners both of whom are expected to partially offload their stakes through the offer for sale component of the issue. The draft red herring prospectus filed by the Mumbai based company reveals that the IPO will comprise a fresh issue worth around 1279 crore rupees while the remaining amount of approximately 3621 crore rupees will be raised through secondary share sales. The funds generated from the fresh issue are intended to be utilized for investing in the company's US subsidiary to repay outstanding borrowings and to support the establishment of new offices in India as well as for general corporate purposes. Additionally a significant portion of the capital will be directed towards research and development particularly in the areas of artificial intelligence and generative AI to maintain its competitive edge in the global market.The approval for Amagi Media Labs is also noteworthy as it prepares to raise funds through a mix of fresh issue and an offer for sale targeting a valuation that reflects its position as a leading cloud based media technology provider. Meanwhile Sahajanand Medical Technologies which manufactures cardiac stents has received approval for its IPO which is primarily an offer for sale by its promoters and investors. Financial experts highlight that the listing of Fractal Analytics will test investor appetite for deep tech and AI companies in India especially after the firm reported a strong financial turnaround in the fiscal year 2025 posting a net profit of over 220 crore rupees compared to a loss in the previous year. This cluster of approvals suggests that the end of 2025 and early 2026 will witness diverse listing opportunities ranging from high tech software solutions to medical devices offering investors multiple avenues for portfolio diversification.