Fractal Analytics IPO GMP Dips: Should You Subscribe to the AI Solutions Provider?

• Fractal Analytics' IPO grey market premium (GMP) has declined to about 10 percent, down from an earlier 21 percent.
• The Rs 2,834-crore IPO opens for subscription from February 9 to February 11, with a price band of Rs 857-900 per share.
• SBI Securities assigned a 'Neutral' rating, citing elevated valuation at 78.9 times P/E, despite strong client relationships and niche AI segment.
• Concerns include the company's attrition levels (16.3% in FY25) and potential business loss due to client insourcing with new AI tools.
• Proceeds will fund debt repayment, R&D, sales & marketing, acquisitions, and general corporate purposes.