PhysicsWallah Files for Initial Public Offer
PhysicsWallah is set to raise Rs 3,820 crore by filing draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offer. This IPO includes a fresh issue of equity shares worth Rs 3,100 crore and an offer for sale (OFS) worth Rs 720 crore, with each of the co-founders, Alakh Pandey and Prateek Boob, planning to offload shares worth Rs 360 crore.
Recent Developments in PhysicsWallah’s IPO
This announcement follows the recent approval of the company’s confidential IPO papers by SEBI last month. The management of the IPO will be handled by Kotak, JP Morgan, Goldman Sachs, and Axis Capital, while MUFG Intime will serve as the registrar.
Utilization of Proceeds from the IPO
From the new issue proceeds, the WestBridge-backed entity intends to allocate Rs 460.5 crore for capital expenditures associated with the establishment of new offline and hybrid centres. Additionally, Rs 5,483 crore will go towards lease payments for its existing facilities.
Specific allocations include Rs 33.7 crore earmarked for lease payments to its subsidiary, Utkarsh Classes, which operates existing offline centres, and Rs 26.5 crore designated for acquiring an additional stake in Utkarsh Classes. Furthermore, Rs 47.16 crore is allocated for another subsidiary, Xylem Learning Pvt. Ltd., and Rs 15.5 crore for lease payments for Xylem’s current offline centres.
PhysicsWallah also plans to invest Rs 200 crore in server and cloud infrastructure, with the bulk of the proceeds, amounting to Rs 710 crore, earmarked for marketing initiatives. Remaining funds will be reserved for potential acquisitions and general corporate needs.
As outlined in the draft red herring prospectus (DRHP), co-founders Alakh Pandey and Prateek Boob each hold the largest stakes in the firm at 40.35%, followed by WestBridge Capital at 7.8%. Other investors include Hornbill Capital, GSV Ventures, and Lightspeed, holding 4.42%, 2.85%, and 1.79%, respectively.
On the financial side, PhysicsWallah has reported a remarkable 49% increase in operating revenue, reaching Rs 2,886.6 crore in FY25, up from Rs 1,940.7 crore in FY24. During the same fiscal year, the company managed to reduce its losses by an impressive 79%, bringing them down to Rs 243 crore.
In a related move, PhysicsWallah has recently acquired a minority stake in the UPSC coaching institute Sarrthi IAS, as reported exclusively by Startup Superb.