Fractal Industries IPO Overview
Fractal Industries Ltd is a garment manufacturing and supply chain solutions company based in Mumbai, serving major e-commerce brands such as Myntra, Ajio, and Flipkart with end-to-end garment production, warehousing, logistics, and returns management.
The company is launching a BSE SME IPO to raise ₹49.00 crore through a 100% fresh issue of equity shares priced in the ₹205 – ₹216 per share band. At the upper price, the minimum retail investment for two lots (1,200 shares) is ₹2,59,200. The IPO opens on 16 February 2026 and closes on 18 February 2026, with listing expected on 23 February 2026.
IPO DETAILED INFORMATION
| Parameter | Details |
| IPO Type | Book Built – SME (BSE SME) |
| IPO Open Date | 16 February 2026 |
| IPO Close Date | 18 February 2026 |
| Anchor Investor Bidding | 13 February 2026 (one-day anchor book) |
| Allotment Date | 19 February 2026 (Expected) |
| Credit to Demat | 20 February 2026 (Expected) |
| Refund Initiation | 20 February 2026 (Expected) |
| Listing Date | 23 February 2026 (Tentative) |
| Price Band | ₹205 – ₹216 per share |
| Face Value | ₹10 per share |
| Lot Size | 600 shares per lot |
| Min Investment (Retail) | ₹2,59,200 (2 lots at upper band) |
| sNII Investment | ₹3,88,800 (3 lots, upper) |
| bNII Investment | ₹10,36,800 (8 lots, upper) |
| Issue Size | ₹49.00 crore |
| Fresh Issue | ₹49.00 crore (100% Fresh) |
| Offer for Sale (OFS) | Nil |
| Total Shares Offered | 22,68,600 equity shares |
| Listing | BSE SME |
Issue Break-up
| Category | Allocation (%) | Shares (Approx.) |
| QIB (Incl. Anchor) | ~47.42% | ~10,75,800 |
| NII (Non-Institutional) | ~14.28% | ~3,24,000 |
| Retail Individual Investors | ~33.27% | ~7,54,800 |
| Market Maker | ~5.03% | ~1,14,000 |
| Total | 100% | 22,68,600 |
Selling Shareholders (OFS)
NO OFFER FOR SALE — Entire IPO is a fresh equity issue, and no promoters are selling shares. All proceeds are intended for corporate purposes including working capital.
Objects of the Issue (Fund Utilization)
The net proceeds from the IPO will be deployed for:
- Working Capital Requirements: To support higher production volumes, inventory, and receivables due to large e-commerce fulfilment contracts.
- General Corporate Purposes: Administrative expenses, marketing, expansion of operations, and other strategic uses.
Strategic Context:
- Working capital focus reflects the order-driven nature of garment supply chain contracts.
Lead Managers & Registrar
- Book Running Lead Manager (BRLM): Finaax Capital Advisors Pvt. Ltd.
- Registrar to the Issue: Kfin Technologies Ltd.
- Market Maker: Shreni Shares Ltd. (indicative)
Promoters & Management
The promoter and management team details as per IPO filings include seasoned professionals in the apparel manufacturing and supply chain sector, leading Fractal’s contract manufacturing, fulfilment and logistics operations across multiple states. Based in Mumbai, Fractal has built warehouses and distribution operations in Gujarat, Maharashtra, Haryana, West Bengal and Karnataka.
(Detailed promoter shareholding percentages are typically published in the Red Herring Prospectus.)
COMPANY DETAILS
Business Overview:
Fractal Industries Ltd operates as an end-to-end garment manufacturing & supply chain solutions provider focused on the needs of fast-fashion e-commerce platforms:
- Design & Production: Manufacturing garments at its facility with a capacity of over 300,000 units per month.
- Warehousing & Logistics: Multi-state warehouse network & inventory management.
- E-commerce Fulfilment: Services including order management, returns processing, quality control and delivery logistics.
Key Clients: Includes top online fashion marketplaces such as Myntra, Ajio and Flipkart.
Financial Snapshot (as reported in RHP & media sources)
| Period Ended | Revenue (₹ Cr) | PAT (₹ Cr) | EBITDA (₹ Cr) |
| H1 FY26 (Sep 2025) | ~47.33 | ~6.78 | ~9.29 |
| FY25 (Mar 2025) | ~85.44 | ~7.53 | ~11.15 |
| FY24 (Mar 2024) | ~50.01 | ~2.27 | ~4.05 |
| FY23 (Mar 2023) | ~88.91 | ~2.66 | ~4.13 |
Trend:
- Revenue growth over successive years indicates scaling of operations.
- Profit improvement reflects operational leverage in apparel manufacturing contracts.
Company Strengths
- Strong e-commerce linkage: Serves fast-fashion platforms with integrated manufacturing and supply services.
- Diversified operations: Warehousing & logistics beyond manufacturing increases customer stickiness.
- Growth in apparel sector: India’s garment exports & domestic fashion demand are resilient.
- Experienced management: Leadership with supply chain & contract manufacturing expertise.
- Working capital focus: IPO proceeds aligned with business needs.
Key Risks & Challenges
- Working capital intensity: High inventory and receivables could stress cash flows.
- Competition: Intense competition from other garment manufacturers and supply chain players.
- SME liquidity risk: BSE SME stocks can be illiquid post-listing.
- Cost pressures: Raw material & logistics costs may affect margins.
- Market cycles: Apparel demand can be affected by seasonal and economic shifts.
Disclaimer
This document is for informational and educational purposes only and does not constitute investment advice. Investors should read the Red Herring Prospectus (RHP) and consult certified financial advisors before making investment decisions. Past performance is not indicative of future results and investments carry risk.
