The Fractal Industries IPO is steadily picking up pace.
On Day 2, the issue was subscribed 1.79 times, reflecting growing participation across categories. After a moderate start on Day 1, demand strengthened, especially from institutional buyers.
Let’s break it down clearly.
Market Performance: Fractal Industries IPO Subscription Update
The Fractal Industries IPO opened on February 16 and will close on February 18.
By 12:24 IST on Day 2:
- Overall subscription: 1.79x
- QIB portion: 4.96x
- Retail portion: 54%
- NII portion: 50%
- Total bids received: 27,04,800 shares
- Total shares on offer: 15,09,600 shares
On Day 1, the IPO was subscribed 1.65x.
The key driver on Day 2 has been strong institutional demand. Qualified Institutional Buyers (QIBs) have shown clear interest, pushing their portion close to 5 times subscription.
Retail participation remains steady, while the NII segment is building gradually.
Fractal Industries IPO Price Band and Lot Size
The Fractal Industries IPO price band has been fixed at:
- ₹205 to ₹216 per equity share
- Face value: ₹10 per share
Minimum Investment Details:
- Retail investors:
- Minimum bid: 1,200 shares
- Investment at upper band: ₹2,59,200
- HNIs (Non-Institutional Investors):
- Minimum lot: 1,800 shares
- Investment at upper band: ₹3,88,800
The structured lot size positions the IPO more towards serious investors due to the higher capital requirement.
Fractal Industries IPO Allocation Structure
Here’s how the issue is divided:
- 47.4% – Qualified Institutional Buyers (QIBs)
- 14.3% – Non-Institutional Investors (NIIs)
- 33.3% – Retail Investors
- 5% – Market Maker
The strong 4.96x QIB subscription suggests institutional confidence in the offer.
Main News: What Is Fractal Industries?
Fractal Industries is a comprehensive garment production and supply chain company.
It handles:
- Designing apparel
- Sourcing raw materials
- Manufacturing garments
- Warehousing and logistics solutions
The company works closely with major e-commerce platforms such as:
- Myntra
- Ajio
- Flipkart
Its focus is on producing fast-moving, high-quality apparel tailored for online retail businesses across India.
Business Model and Services
Fractal Industries operates as a full-stack apparel supply chain partner.
Key services include:
- Product and order management
- Inventory management
- Returns processing
- Integrated logistics
- Data analytics
- Multi-channel sales support
- Order anomaly detection
This integrated model allows the company to control the apparel lifecycle from design to delivery.
Financial Performance: Revenue, EBITDA, Margins & Profit
The numbers tell an important part of the story.
Financial Year Ending March 2025:
- Total Income: ₹85.51 crore
- Profit After Tax (PAT): ₹7.54 crore
- EBITDA: ₹11.15 crore
- EBITDA Margin: 13.04%
- PAT Margin: 8.82%
Half-Year Ending September 2025:
- Revenue: ₹47.33 crore
- Profit After Tax (PAT): ₹6.78 crore
- EBITDA Margin: 19.63%
- PAT Margin: 14.34%
The half-year numbers reflect improved profitability margins compared to the full previous year figures.
Both EBITDA margin and PAT margin expanded significantly during the half-year period.
Fractal Industries IPO Issue Size and Structure
The Fractal Industries IPO is entirely a fresh issue.
- Fresh issue size: 22.68 lakh shares
- Total issue size: ₹49 crore
Before the IPO opened, the company raised:
- ₹13.93 crore from anchor investors
This anchor participation was completed ahead of the public bidding process.
Use of IPO Proceeds
According to available information, the company plans to use the net proceeds primarily for:
- Working capital requirements
- General corporate purposes
The focus remains on strengthening operational liquidity and supporting business expansion needs.
Lead Managers and Registrars
- Book Running Lead Manager: Finaax Capital Advisors Private Limited
- Registrar: Kfin Technologies Ltd.
- Market Maker: Shreni Shares Ltd.
These institutions are overseeing the IPO process and allotment procedures.
Subscription Trend: What Day 2 Tells Us?
The Fractal Industries IPO subscription status shows a clear pattern:
- Institutional appetite is strong.
- Retail participation is moderate.
- NII bidding is building gradually.
The jump from 1.65x on Day 1 to 1.79x on Day 2 signals improving traction.
Institutional demand often sets the tone in SME IPOs, and the QIB book nearing 5 times subscription stands out.
Summary: Fractal Industries IPO at a Glance
The Fractal Industries IPO has entered its second day with solid momentum.
- Subscription at 1.79x
- Strong QIB demand at 4.96x
- IPO size of ₹49 crore
- Fully fresh issue of 22.68 lakh shares
- Price band set between ₹205 – ₹216
With improving financial margins and institutional participation driving demand, the issue has gained visible traction by Day 2.
As bidding continues until February 18, market participants are closely tracking the final subscription numbers across categories.
The coming day will determine the overall closing momentum of the Fractal Industries IPO.
Source: Livemint
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