India’s first pure-play AI firm lists at a discount despite strong IPO demand

Shares of Fractal Analytics, billed as India’s first pure-play artificial intelligence company to go public, made a muted debut on the domestic bourses on Monday, listing at a modest discount to their initial public offering (IPO) price.

On the National Stock Exchange (NSE), the stock opened at Rs 876 per share, representing a decline of 2.67 per cent from the upper end of its price band of Rs 900. On the Bombay Stock Exchange (BSE), the shares were listed at par with the issue price. The company’s market capitalisation stood at Rs 15,476.86 crore following the listing.

The muted listing of Fractal Analytics assumes added significance amid the AI Summit 2026 underway in Delhi from 16-18 February, where global leaders, policymakers, and industry executives are converging to shape India’s role in the AI revolution.

Although the milestone offered an opportunity to showcase India’s AI ambitions and highlight the sector’s role in powering future economic growth, volatility in early trade dampened the initial enthusiasm surrounding the listing.

The Rs 2,834 crore IPO, priced in a band of Rs 857 to Rs 900 per share, had attracted moderate investor interest during its subscription window from 9 to 11 February. The issue was subscribed 2.66 times overall in the primary market. Ahead of the public offer, the company had raised Rs 1,248.26 crore from anchor investors.

Despite expectations of a stronger debut, the stock came under additional pressure in early trade. By around 11:30 am, shares had slipped further to Rs 852.80, marking a fall of 5.25 per cent from the issue price.

In the grey market, the shares had indicated a largely flat premium ahead of listing, suggesting limited speculative enthusiasm.

Market experts advised investors to remain cautious in the near term. Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said short-term investors seeking listing gains could consider partial profit-booking if the stock trades at a premium, noting that elevated valuations and sentiment around the AI sector may result in volatility. For long-term investors, she added, the company’s positioning in the fast-growing global AI and analytics space could justify holding the stock.

Proceeds from the fresh issue are earmarked for investment in its subsidiary, Fractal USA, primarily to repay debt. The company also plans to allocate funds towards purchasing laptops, establishing new offices in India, strengthening research and development capabilities, expanding sales and marketing efforts under its Fractal Alpha initiative, pursuing acquisitions and other strategic initiatives, and meeting general corporate requirements.

With agency inputs