Mumbai-based AI and data analytics firm Fractal Analytics fell about 5% in its trading debut on Monday, marking a soft start for India’s first AI listing. The stock was trading at INR 861, below its IPO issue price of INR 900 per share. At the traded price, the firm was valued at INR 148.1 bn (USD 1.6 bn), Reuters reports.

Market reaction: The listing comes amid a broader selloff in software and data analytics firms, driven by investor concerns that AI tools could disrupt traditional business models. Last week, the company’s INR 28.34 bn (USD 314 mn) IPO was fully subscribed on the final day of bidding.

Anchor allocation: Ahead of the IPO, the company raised INR 12.48 bn from anchor investors by allotting about 13.87 mn shares at the upper end of the price band.

Why it matters: Gulf sovereign and institutional investors did not participate in the IPO’s anchor round, echoing a tepid investor response toward Indian AI firms.

Issue structure: About INR 3.5 bn, or roughly 35% of the fresh issue, will be used for AI-led revenue initiatives, research and development, and internal technology investments, with the remainder earmarked for loan repayment and basic capital expenditure.

Bookrunners: The IPO was managed by Kotak Mahindra Capital Company, Morgan Stanley India Company, Axis Capital, and Goldman Sachs (India) Securities.

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