Fractal Industries IPO Subscribed Over 5 Times

Fractal Industries’ IPO received strong investor participation, getting subscribed more than five times on the final day. With anchor backing and solid institutional demand, the company is set to list on the BSE SME platform on February 23. The proceeds will primarily support working capital requirements as the garment manufacturer expands operations.

Fractal Industries IPO Subscribed Over 5 Times

Mumbai-based Fractal Industries received a strong response from investors for its Initial Public Offering (IPO). On the final day of bidding, February 18, the issue was subscribed 5.13 times overall.

The company had fixed the price band at Rs 205 to Rs 216 per share. The IPO is entirely a fresh issue, under which 22.68 lakh new shares will be issued.

As of February 15, the Grey Market Premium (GMP) stood at Rs 4, but it dropped to zero by February 18.

Strong Investor Interest Across Categories

Between February 16 and 18, investors bid for 83.28 lakh shares, against an offer size of 16.23 lakh shares. A total of 3,270 bids were placed.

Subscription details by category:

• Non-Institutional Investors (NII): 6.12 times

• Qualified Institutional Buyers (QIB): 5.95 times

• Retail Investors: 4.09 times

The strong participation from institutional and non-institutional investors provided solid support to the issue.

Grey Market Premium Falls to Zero

According to market tracker data, the company’s unlisted shares saw limited activity in the grey market. While the GMP was Rs 4 until February 15, it declined to zero by February 18, indicating cautious sentiment ahead of listing.

Allotment and Listing Date

The share allotment for the IPO is expected to be finalized by February 19.

The company’s shares are scheduled to list on the BSE SME platform on February 23.

Rs 13.93 Crore Raised from Anchor Investors

Before the IPO opened, Fractal Industries raised Rs 13.93 crore from six anchor investors by issuing 6.45 lakh shares.

Key anchor investors include:

• Minerva Ventures Fund

• Visionary Value Fund

• Zeal Global Opportunities Fund

• Arnesta Global Fund

Utilization of IPO Proceeds

Out of the total funds raised through the IPO:

• Rs 36.5 crore will be used to meet working capital requirements.

• The remaining funds will be used for general corporate purposes.

The company stated that increasing order volumes, higher inventory levels, rising receivables, advance payments to suppliers, and security deposits have created the need for additional working capital.

Company Business and Manufacturing Capacity

Fractal Industries is a full-service garment manufacturing and technology-driven supply chain management company. It manufactures fast-moving and high-quality garments primarily for e-commerce marketplaces.

Its major clients include:

• Myntra

• Ajio

The company’s manufacturing unit is located in Mumbai, with a monthly production capacity of over 3 lakh garment units.

Additionally, it operates warehouses across:

• Gujarat

• Maharashtra

• Haryana

• West Bengal

• Karnataka

Conclusion

The strong 5.13x subscription of the Fractal Industries IPO reflects solid investor interest, particularly from institutional and non-institutional categories. Despite the Grey Market Premium dropping to zero ahead of listing, the healthy demand across segments indicates confidence in the company’s business model and growth prospects.

With funds primarily earmarked for working capital to support rising order volumes and operational expansion, Fractal Industries appears focused on strengthening its supply chain and scaling production capacity. All eyes will now be on the allotment outcome and the company’s listing performance on the BSE SME platform.