PhysicsWallah: A Major Debut in the Edtech Sector
Edtech unicorn PhysicsWallah had a remarkable public market entry on Tuesday, listing its shares at Rs 145 on the NSE, which is a 33% increase from its initial issue price of Rs 109. Meanwhile, the stock opened slightly lower at Rs 143 on the BSE. PhysicsWallah’s Initial Public Offering (IPO) was accessible for subscription between November 11–13, with a price range set between Rs 103 and Rs 109, requiring a minimum investment of Rs 14,111. This Rs 3,480 crore issue was composed of a fresh issue worth Rs 3,100 crore and an Offer for Sale (OFS) amounting to Rs 380 crore. The offering garnered a moderate response, achieving an overall subscription of 1.8 times, mainly due to institutional interest. The retail segment was subscribed at 1.05 times, whereas Qualified Institutional Buyers (QIBs), excluding anchor investors, subscribed at 2.7 times.
The company has ambitious expansion plans set forth. According to its Red Herring Prospectus (RHP), the fresh funds will be used to enhance PhysicsWallah’s offline presence, improve its technological infrastructure, and seek acquisitions in the test preparation and skill development segments. Prior to its listing, PhysicsWallah secured Rs 1,563 crore from anchor investors, including prominent domestic mutual funds like ICICI Prudential MF, Kotak MF, and Nippon MF, alongside renowned global entities such as Fidelity.
Established in 2020, PhysicsWallah has positioned itself as one of the few profitable large-scale enterprises in India’s edtech environment, despite the industry’s ongoing funding challenges. The startup operates over 500 offline centres under the Vidyapeeth and Pathshala brands and reports over 1 crore monthly active users across its digital platforms.
Financially, the startup reported a revenue of Rs 2,887 crore with a loss of Rs 243 crore in FY25. In the first quarter of FY26, PhysicsWallah achieved a revenue of Rs 847 crore, although losses increased to Rs 127 crore. PhysicsWallah now stands as the first Indian edtech firm to provide significant listing gains for its investors, with the stock trading at Rs 155.5 as of 10:00 AM, reflecting a 38% premium over its issue price.