Fractal Industries Limited is entering the primary market with its upcoming Initial Public Offering (IPO) worth ₹49.00 crore. The company operates as an integrated apparel manufacturing and supply chain solutions provider, primarily catering to e-commerce platforms and digital-first brands.

The IPO opens for subscription on February 16, 2026, and closes on February 18, 2026. Investors looking at small and emerging businesses in the apparel and e-commerce ecosystem may find this issue worth evaluating. However, before applying, it is important to understand the company’s business model, financial positioning, valuation, Grey Market Premium (GMP), and associated risks.

Let us break down all aspects in detail.

About Fractal Industries Limited

Fractal Industries Limited is positioned as an integrated apparel manufacturing company offering end-to-end solutions for e-commerce brands. The company does not merely manufacture garments; it provides a complete ecosystem that includes:

• Designing garments

• Sourcing raw materials

• Manufacturing apparel

• Warehousing services

• Order fulfillment

• Logistics support

• Technology-enabled supply chain management

This integrated approach allows e-commerce brands to reduce operational complexity and focus on scaling their online sales.

Revenue Model

The company earns revenue through three primary streams:

1. Garment Manufacturing Revenue – Production and sale of apparel products.

2. Supply Chain Management Services – Warehousing, inventory management, fulfillment services.

3. Value-Added Technology Services – Technology-enabled tracking, demand forecasting, and logistics solutions.

By combining manufacturing with logistics and technology, Fractal Industries aims to offer a speed-to-market advantage to its clients.

Industry Overview

India’s apparel and textile sector is one of the largest contributors to manufacturing output and employment. With the rapid rise of:

• E-commerce marketplaces

• Direct-to-consumer (D2C) brands

• Online fashion platforms

There is growing demand for integrated supply chain partners who can provide quick turnaround times and flexible production.

Traditional apparel manufacturers typically focus only on production. However, modern e-commerce brands require:

• Faster design-to-delivery cycles

• Inventory optimisation

• Data-driven demand planning

Fractal Industries aims to fill this gap.

Fractal Industries IPO Details

Here are the key IPO highlights:

• Issue Type: Book Built Issue

• Issue Size: ₹49.00 Crore

• Fresh Issue: 0.23 crore shares

• Face Value: ₹10 per equity share

• Price Band: ₹205 to ₹216 per share

• Lot Size: 600 shares

• Exchange: BSE

• IPO Open Date: February 16, 2026

• IPO Close Date: February 18, 2026

• Allotment Date: On or about February 19, 2026

• Listing Date: On or about February 23, 2026

Market Capitalisation at IPO

At the upper price band of ₹216 per share, the company’s market capitalisation will be approximately:

₹169.54 Crore

This positions Fractal Industries as a small-cap company in the listed space.

Investment Requirements

Retail Investors

• Minimum Lot: 600 shares

• Minimum Application: 2 lots (1,200 shares)

• Minimum Investment: ₹259,200

High Net-Worth Individuals (HNIs)

• Minimum Application: 3 lots (1,800 shares)

• Minimum Investment: ₹388,800

This IPO requires a relatively high minimum investment for retail investors, which may limit participation from small-ticket investors.

Lead Managers and Other Details

• Book Running Lead Manager: Finaax Capital Advisors Private Limited

• Registrar: KFIN Technologies Limited

• Market Maker: Shreni Shares Ltd

These intermediaries will manage subscription, allotment, and listing processes.

Grey Market Premium (GMP) Today

As per current indications:

Fractal Industries IPO GMP: ₹0

The Grey Market Premium is currently neutral.

However, investors must understand:

• GMP is unofficial and unregulated.

• No formal trading happens under regulatory oversight.

• GMP is driven purely by demand and supply.

• It should not be the sole basis for investment decisions.

The company’s GMP being zero suggests neutral market sentiment at present.

Strengths of Fractal Industries

1. Integrated Business Model

The biggest strength lies in its end-to-end apparel and supply chain solution. Clients benefit from:

• Reduced vendor coordination

• Faster turnaround

• Better inventory management

This model aligns well with the needs of fast-growing e-commerce brands.

2. Focus on E-commerce Platforms

India’s e-commerce fashion market is expanding rapidly. By focusing specifically on:

• Online marketplaces

• D2C brands

• Digital retail companies

Fractal Industries positions itself in a high-growth segment.

3. Technology Integration

The use of technology-enabled services for:

• Demand forecasting

• Inventory management

• Fulfillment tracking

adds value beyond basic manufacturing.

4. Asset-Light Scalability Potential

If the company leverages outsourcing and partnerships effectively, it may scale operations without heavy capital expenditure.

Risks to Consider

Every IPO carries risks, especially small-cap IPOs.

1. Dependence on E-commerce Sector

The company’s heavy focus on e-commerce platforms means:

• Any slowdown in online retail

• Regulatory changes affecting e-commerce

• Competition from larger integrated players

can impact revenue.

2. Competitive Industry

The apparel manufacturing sector is highly competitive with:

• Established textile players

• Export-oriented manufacturers

• Large integrated companies

Margins may remain under pressure.

3. Working Capital Intensive

Apparel manufacturing and warehousing require:

• Inventory management

• Cash flow stability

• Efficient receivables collection

Poor working capital management can affect profitability.

4. Small Market Capitalisation

With a post-IPO market cap of ₹169.54 crore, the stock may experience:

• High price volatility

• Low liquidity

• Limited institutional participation

Valuation Perspective

At ₹216 per share and market cap of ₹169.54 crore, investors must evaluate:

• Earnings growth potential

• Profit margins

• Return on capital employed (ROCE)

• Debt levels

Without strong profitability growth, small-cap IPOs may struggle post listing.

Investors should compare the valuation with:

• Other listed apparel manufacturers

• Integrated supply chain companies

• SME and small-cap textile firms

Use of IPO Proceeds

Since this is entirely a fresh issue, the funds raised will likely be used for:

• Working capital requirements

• Business expansion

• Technology upgrades

• General corporate purposes

Fresh issue means money goes to the company, not existing promoters.

Subscription Outlook

Factors that may influence subscription:

• Market sentiment during February 2026

• Performance of recent IPOs

• Investor appetite for small-cap manufacturing firms

• GMP trend closer to listing

If subscription demand is strong, listing gains may improve.

Listing Expectations

With GMP currently at zero:

• Listing may be flat unless subscription improves.

• Oversubscription can change sentiment.

• Market conditions on listing day will play a key role.

Tentative listing date is February 23, 2026 on BSE.

Who Should Consider This IPO?

Suitable For:

• Investors comfortable with small-cap volatility

• Those bullish on India’s e-commerce growth

• Long-term investors willing to take calculated risk

Not Suitable For:

• Conservative investors seeking stable returns

• Short-term traders depending solely on GMP

• Investors with low risk appetite

Long-Term Outlook

India’s apparel market is expected to grow steadily due to:

• Rising disposable income

• Increasing fashion consciousness

• Rapid growth of online retail

If Fractal Industries:

• Strengthens client relationships

• Expands capacity efficiently

• Maintains strong margins

it may benefit from structural industry growth.

However, execution remains critical.

Key Takeaways

Fractal Industries Limited brings a technology-backed integrated apparel manufacturing model to the IPO market. The company is focused on serving e-commerce brands through end-to-end supply chain solutions.

The IPO:

• Opens on February 16, 2026

• Closes on February 18, 2026

• Has a price band of ₹205–₹216

• Has a market cap of ₹169.54 crore at upper band

• Shows ₹0 GMP currently

While the business model is promising, investors must weigh:

• Competitive risks

• Industry cyclicality

• Valuation metrics

• Market conditions

Small-cap IPOs can deliver strong returns but also carry higher risk.

Investors should carefully read the Red Herring Prospectus (RHP), evaluate financial performance, and align the investment decision with their risk tolerance.

As always, IPO investing should be done after proper research and not purely based on Grey Market Premium trends.

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