The primary market is back with a bang! India’s first AI IPO and a major NBFC giant are opening their public offers this month. Here are the confirmed issue sizes and details.
After a quiet December, the Indian stock market is gearing up for two blockbuster Initial Public Offerings (IPOs) in January 2026. Both Fractal Analytics and Hero FinCorp have received final observations from SEBI and are ready to hit Dalal Street.
1. Fractal Analytics (India’s First AI IPO)
This is the most hyped IPO of the year. Fractal Analytics is set to become India’s first listed “Pure-Play Artificial Intelligence” company.
- Expected Issue Size: Approx ₹4,900 Crore
- Structure:
- Fresh Issue: ₹1,279.3 Crore (funds to be used for global expansion).
- Offer for Sale (OFS): ₹3,620.7 Crore by existing investors like TPG.
- Why It’s Hot: With AI being the global theme, the Grey Market Premium (GMP) for Fractal is already commanding a 40-50% premium. The company reported a revenue jump of 26% in FY25.
- Launch Date: Expected in the second week of January 2026.
2. Hero FinCorp (The NBFC Giant)
The financial services arm of the Hero Group is launching a massive IPO to strengthen its capital base.
- Expected Issue Size: Approx ₹3,668 Crore
- Structure:
- Fresh Issue: ₹2,100 Crore.
- Offer for Sale (OFS): ₹1,568 Crore.
- Key Strength: Backed by the “Hero” brand, the company has a massive reach in Tier-2 and Tier-3 cities for two-wheeler financing. It holds a credit rating of AA+, making it a stable long-term bet.
What Should Investors Do?
- For High Risk/High Reward: Keep cash ready for Fractal Analytics. The listing gains could be significant due to the AI scarcity premium.
- For Long-Term Stability: Hero FinCorp is a safer bet for conservative portfolio builders looking for steady banking/finance exposure.
FAQs: Upcoming IPOs Jan 2026
A: The Fractal Analytics IPO is tentatively scheduled to open in the second week of January 2026 (likely Jan 6–8). The exact dates will be confirmed once the Red Herring Prospectus (RHP) is filed with the ROC.
A: You can check GMP on trusted financial websites like Chittorgarh or IPO Watch. Note: GMP is unofficial and unregulated; do not rely on it solely for investment decisions.
A:Fractal Analytics: Likely 10% for Retail (since it is a profitable company meeting profitability criteria, it might be 35%, but tech IPOs often have 10%).
Hero FinCorp: Expected to be 35% for Retail investors.
A: Yes. You need an active Demat account and a UPI ID (like Google Pay/PhonePe) to block funds for the IPO application.
Disclaimer: investments in the securities market are subject to market risks. Read all the related documents carefully before investing. The Grey Market Premium (GMP) is an unofficial figure and can change rapidly; it should not be taken as a guarantee of listing gains. Please consult your financial advisor before applying.
