PhysicsWallah Ltd, founded by Alakh Pandey in 2016 on YouTube, has evolved into a significant edtech company providing JEE, NEET, and government exam preparation through online, offline, and hybrid classes. The company’s income doubled in FY24, achieving a 161% increase that year. In FY25, it continued to grow by 49%, although it still reported losses due to high expenses and expansion efforts. The IPO details include a price band of ₹103 to ₹109 per share, a total issue size of ₹3,480 crore, with a fresh issue of ₹3,100 crore and an offer for sale of ₹380 crore. The lot size is 137 shares, requiring a minimum investment of ₹14,933, with a valuation around ₹31,500 crore.
The allotment date is set for November 14, and the listing date is November 18 on both BSE and NSE. The funds raised will be used for new centers, technology, and marketing, making this IPO one of the largest in the edtech sector, reflecting the company’s rapid growth. As of Day 2 (Nov 12), the IPO was 9% subscribed, up from 7% on Day 1. Retail investors accounted for about 44–47%, while non-institutional investors (NIIs) made up roughly 3–4%, with very low participation from qualified institutional buyers (QIBs). The initial response has been tepid, suggesting that large investors may engage later, although the weak start indicates a diminished likelihood of a robust listing.
The grey market premium (GMP), which indicates pre-listing demand, started at ₹4 per share (approximately 3–4% gain) but later decreased to ₹1.5–₹2 per share (about 1–2% gain). A declining GMP points to waning demand, which is concerning for a significant IPO, as typical popular IPOs exhibit a GMP of 10–20% prior to listing. From an investor’s perspective, expectations for substantial short-term gains are low, while the long-term outlook remains optimistic due to the company’s strong growth and established brand. However, risks include high pricing, elevated costs, and intense competition. Those who believe in the future of edtech may consider long-term investments, whereas those seeking immediate profits might prefer to wait.
Overall, while the PhysicsWallah IPO is ambitious, current investor interest is limited, and the upcoming listing on November 18 will provide clearer market insights. The company’s immediate goals include managing costs, strategic expansion, and achieving profitability, emphasizing a cautious, long-term approach.
