Fractal Industries Ltd IPO

Textiles

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Price Band

₹205 – ₹216

Lot Size

600

Minimum Bid Quantity

1200

Minimum Investment

₹259200

Issue Size

₹49Cr

Opens

2026-02-16

Closes

2026-02-18

Listing

24-02-2026

Subscription Status

Qualified Institutional Buyers

5.95 x

Non-Institutional Investor

6.08 x

Retail Individual Investor

4 x

Total

5.08 x

IPO Details

Issue Type

FP

Face Value

₹10

Tick Size

1

ISIN

INE1W3Q01011

Pre-Apply Available

No

Daily Bidding Time

10:00:00 - 17:00:00

About the Company

Fractal Industries Limited is engaged in the designing, sourcing, and manufacturing of garments and in providing warehousing and supply chain services for e-commerce platforms. The company undertakes end-to-end garment manufacturing activities, including design coordination, production, quality control, and order fulfilment for online marketplaces such as Myntra, Ajio, among others. It also provides supply chain and fulfilment services covering warehousing, logistics coordination, inventory management, order management, returns processing, and multi-channel sales support. In addition, the company offers technology-enabled services such as product management systems, data analytics, order anomaly detection, and integrated logistics management to support apparel-related e-commerce operations. Fractal Industries initially began manufacturing garments for Myntra and subsequently expanded its client base to other marketplaces. The company’s manufacturing facility is located in Mumbai, while its warehouses are situated in Gujarat, Maharashtra, Haryana, West Bengal, and Karnataka.

Pros

  • • Fractal Industries claims to operate a technologically advanced Warehouse Management System (WMS) that provides real-time visibility across the entire inventory lifecycle, from raw materials to finished goods ready for dispatch. The system automates warehouse processes such as inwarding, quality checks, picking, and packing, and uses barcode-based tracking to improve process accuracy and reduce order fulfilment time. The WMS is designed to handle a high volume of SKUs and is integrated with major online marketplaces, enabling unified inventory management across multiple sales channels.
  • • The company claims to have developed dedicated processes for managing reverse logistics in the apparel e-commerce segment, where return rates are relatively high. Returned items undergo structured inspection and grading, with refurbishment activities such as steaming, stain removal, and minor repairs carried out where feasible. According to the company, these processes help make saleable returned products available for resale within a short turnaround time.
  • • Fractal Industries claims to have embedded quality control measures across raw material inspection, work-in-progress stages, finished goods, and warehouse operations. The company states that its quality assurance processes combine manual checks with automated tracking systems to monitor compliance with marketplace requirements. This end-to-end inspection framework is intended to reduce defects and rejections across manufacturing and fulfilment activities.

Cons

  • • The top customer accounted for Rs 37.11 crore (78.45 percent) (consolidated) of the company’s revenue for the period ended September 30, 2025; Rs 75.20 crore (88.01 percent) (standalone) in FY25; Rs 25.25 crore (50.57 percent) (consolidated) in FY24; and Rs 68.37 crore (76.90 percent) (consolidated) in FY23. Failure to retain this key client, loss of business from this customer, or failure to secure new customers through marketplaces could adversely affect the company’s revenue, operations, and financial condition.
  • • The top supplier accounted for Rs 3.24 crore (11.80 percent) (consolidated) of the company’s total purchases for the period ended September 30, 2025; Rs 2.89 crore (6.36 percent) (standalone) in FY25; Rs 4.60 crore (8.66 percent) (consolidated) in FY24; and Rs 7.60 crore (9.21 percent) (consolidated) in FY23. Any disruption in supplies, deterioration in supplier relationships, or inability to source materials of similar quality and prices from alternative suppliers could hurt the company’s procurement, operations, and financial performance.
  • • The company and its promoters are involved in certain ongoing legal proceedings. The company’s business prospects could be hit in case of adverse judgments in any of these cases.

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