PhysicsWallah IPO: Strong Subscription and Future Plans

Edtech unicorn PhysicsWallah’s initial public offering (IPO) has garnered a total subscription of 1.8 times. This impressive response can be attributed largely to robust interest from Qualified Institutional Buyers (QIBs), who subscribed 2.7 times their designated quota. Notably, the employee segment exhibited the highest enthusiasm with a subscription rate of 3.5 times, while both retail and Non-Institutional Investor (NII) portions were subscribed at 1.05 times and 0.48 times, respectively.

The IPO, which was open for bidding from November 11 to November 13, featured a price range of Rs 103 to Rs 109 per share and required a minimum investment of Rs 14,111. Expected to list on the BSE and NSE by November 18, PhysicsWallah aims to make a significant mark in the market.

According to the Red Herring Prospectus (RHP), PhysicsWallah is looking to raise Rs 3,100 crore through a fresh issue, while co-founders Alakh Pandey and Prateek Boob plan to sell shares worth Rs 380 crore through an offer for sale (OFS), a reduction from the previous draft’s Rs 720 crore. At the top end of the price range, the IPO values the company at approximately Rs 28,426 crore (about $3.2 billion).

The newly acquired funds will be directed towards expanding offline centres, upgrading technology infrastructure, and exploring strategic acquisitions within the test preparation and skilling sectors.

Prior to the IPO, PhysicsWallah successfully raised Rs 1,563 crore from various anchor investors, which include domestic mutual funds such as ICICI Prudential MF, Kotak MF, and Nippon MF, along with global institutions like Fidelity.

In FY25, the Noida-based company reported operating revenue of Rs 2,887 crore along with a net loss of Rs 243 crore. For Q1 FY26, it recorded revenue of Rs 847 crore while experiencing a loss of Rs 127 crore, as stated in its RHP.