Fractal Analytics544700Routine SEBI update

Monitoring report: nil deviation, Rs. 82.1 crore of IPO proceeds used in Q2FY27

CARE Ratings' Monitoring Agency Report for the quarter ended September 30, 2026 is out.

By ScoutQuest · Tue 3 Nov 2026, 11:16 PM IST · 3 min read

₹82.1 croreUtilisation of IPO proceeds during

Spent on manpower and cloud costs under Object 4₹71.1 crore

Spent on purchase of laptops under Object 2₹10.3 crore

Utilisation of IPO proceeds during ₹82.1 crore: Spent on manpower and cloud costs under Object 4 ₹71.1 crore, Spent on purchase of laptops under Object 2 ₹10.3 crore.

IPO proceeds utilised in Q2FY27: Rs. 82.1 crore
Deviation from objects of IPO: Nil
Fresh issue size and net proceeds: Rs. 1,023.5 crore fresh issue; net proceeds available for use: 959.3 crore

What this update is

Fractal Analytics has disclosed the report of CARE Ratings Limited, the Monitoring Agency appointed to track how the money raised in its Initial Public Offer (IPO) is being spent. This report covers the quarter ended September 30, 2026 and was reviewed and taken on record by the Audit Committee and the Board of Directors on November 3, 2026.

What the Monitoring Agency reports

Deviation from the objects of the issue: Nil
Range of deviation: Not applicable
No major deviation observed over the earlier monitoring agency report (Q1FY27 report dated July 23, 2026)
All government and statutory approvals related to the objects have been obtained, including approvals for the overseas equity investment in Fractal USA
No unfavourable events affecting the viability of the objects
No other information that may materially affect investor decision making

How much was spent this quarter

During Q2FY27, the company reported utilisation of ₹82.1 crore towards the stated objects. The utilisation included direct payments as well as reimbursement of expenditure already incurred by the company and its subsidiaries.

Where that money went

₹10.3 crore towards the purchase of laptops under Object 2
₹71.1 crore towards manpower and cloud costs for the Fractal.ai and Fractal Alpha segments, for product development and sales and marketing, under Object 4

The agency notes that the eligible utilisation under Object 4 is arrived at from the company's project identification and cost-allocation basis, supported by a chartered accountant's certificate that records verification of expense ledgers against payroll registers, bank statements and cloud-cost invoices.

The IPO and the money available

Issue period: February 9, 2026 to February 11, 2026; public issue of equity shares
Gross proceeds from the fresh issue: Rs. 1,023.5 crore
Less issue expenses relating to the fresh issue: 64.2 crore
Net proceeds available for utilisation: 959.3 crore

The offer itself comprised 3,15,57,305 shares — a fresh issue of 1,14,41,751 equity shares and an offer for sale of 2,01,15,554 shares — at an issue price of Rs. 900 per share, aggregating Rs. 1,023.5 crore for the fresh issue and Rs. 1810.4 crore for the offer for sale. The fresh issue included 7,36,196 equity shares offered to eligible employees at a discount of Rs. 85 per share. The overall issue was oversubscribed by around 2.7 times, and the company allotted 3,15,23,948 shares (1,14,08,394 under the fresh issue and 2,01,15,554 under offer for sale) for a total consideration of Rs. 2,833.9 crore.

What the money was originally meant for (cost as per the Offer Document)

Investment in subsidiary Fractal USA, for pre-payment and/or scheduled repayment, in full or in part, of its borrowings: 264.9 crore
Purchase of laptops: 57.1 crore
Setting-up new office premises in India: 121.1 crore

No revision in these costs was reported for the quarter under review.

How to read this

This is a periodic disclosure that tells investors whether IPO money is being spent the way the offer document said it would be. For this quarter, the agency records nil deviation and no adverse observations, and the utilisation is backed by a chartered accountant's certificate. The report also carries a declaration that the agency does not perform an audit or independent verification of the information it receives.

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