Fractal Industries IPO Day 3 Update – Strong Subscription with Flat GMP Signal

Fractal Industries Ltd, a growing full-service garment manufacturing and supply-chain company in India, has attracted notable investor interest as its SME IPO concluded on 18 February 2026, completing a three-day bidding period. The issue was launched on 16 February 2026 and closed for public subscription on 18 February 2026, with allotment scheduled to be finalised on 19 February 2026 and listing expected on the BSE SME platform on 23 February 2026.

The IPO was structured as a book-built fresh issue aggregating a total size of approximately ₹49 crore, consisting of 22,68,600 fresh equity shares. The price band for the offering was fixed in the range of ₹205 to ₹216 per share, with a face value of ₹10 per share.

Investor participation during the final day was solid, with overall subscription figures reaching around 2.60 times by the close of bidding on Day 3, according to detailed market data. The Qualified Institutional Buyers (QIB) segment led the demand, while non-institutional and retail categories also contributed meaningfully to the total subscription.

In terms of Grey Market Premium (GMP) — an unofficial indicator of prospective listing performance — the Fractal Industries IPO was trading at ₹0 over the upper issue price of ₹216 on the final day. This suggests that the estimated listing gain could be neutral, pointing to a potentially flat debut performance on the SME platform. GMP levels had previously shown modest positive figures in the early days of the subscription period but settled at zero by 18 February 2026, highlighting cautious sentiment in the grey market.

For individual investors, the lot size was set at 600 shares, meaning a minimum retail investment of ₹2,59,200 at the upper end of the price band. High net worth individual (HNI) investors could apply for larger multiples, with three lots (1,800 shares) representing a minimum investment of ₹3,88,800.

Fractal Industries operates in the apparel segment and provides comprehensive services that include garment design, sourcing, manufacturing, warehousing, logistics and supply-chain support for major e-commerce platforms such as Myntra, Ajio and Flipkart. The company also offers operational support services including product and order management, inventory handling and integrated analytics.

Financially, the firm has posted encouraging growth figures in recent periods, with revenue rising significantly year-on-year and profit after tax expanding as well, reflecting steady operational performance ahead of the IPO. These metrics have underpinned analysts’ neutral to positive outlooks on the IPO, though some market observers have highlighted the competitive nature of the apparel and logistics sectors when considering long-term returns.

The net proceeds from the IPO are expected to support the company’s working capital requirements and general corporate purposes, paving the way for future growth initiatives and scalability across its core service offerings.

Overall, the Fractal Industries IPO demonstrated robust institutional demand and moderate retail participation, closing with multiple times subscription and a flat GMP trend, which may signal a stable debut at its SME listing later this month. Investors and market participants will be watching the listing performance closely to gauge broader sentiment in the SME IPO space amidst varied market conditions.