Highlights
PhysicsWallah IPO Announcement
PhysicsWallah has officially lodged its Red Herring Prospectus (RHP) to initiate a Rs 3,480 crore initial public offering (IPO). This significant event will commence subscriptions on November 11 and conclude on November 14, 2025, with bidding for anchor investors kicking off on November 10. The listing of the company’s shares is anticipated on the NSE and BSE on November 18.
IPO Details and Offer Structure
As per the RHP, the Noida-based educational technology enterprise targets to generate Rs 3,100 crore through a fresh issue. Co-founders Alakh Pandey and Prateek Boob plan to each divest shares amounting to Rs 190 crore, summing up to a total of Rs 380 crore. It is noteworthy that the offer-for-sale (OFS) size has been diminished from Rs 720 crore as stated in the previous draft prospectus (U-DRHP).
Management and Allocation of Proceeds
The IPO is set to be under the aegis of Kotak, JP Morgan, Goldman Sachs, and Axis Capital, with MUFG Intime acting as the registrar. From the proceeds of the fresh issue, the WestBridge-backed company intends to designate Rs 460.5 crore towards establishing new offline and hybrid centres, alongside Rs 548.3 crore for the leasing of current outlets. Specific allocations include Rs 28 crore for Utkarsh Classes’ lease payments and an additional Rs 26.5 crore for acquiring greater equity in it, alongside Rs 47.16 crore for affiliate Xylem Learning and Rs 15.5 crore for lease obligations related to Xylem.
Infrastructure Investments and Marketing Allocations
Furthermore, Rs 200 crore is earmarked for enhancements in server and cloud infrastructure. A significant portion, amounting to Rs 710 crore, will be invested in marketing ventures, with the remaining funds directed towards acquisitions and general corporate purposes.
At the time of the RHP, co-founders Pandey and Boob each possess the largest proportional stakes in the company, standing at 40.31%. They are followed by WestBridge Capital holding 7.8%, and Hornbill Capital, GSV Ventures, and Lightspeed holding stakes of 4.41%, 2.85%, and 1.79%, respectively.
On the financial spectrum, PhysicsWallah’s operational revenue experienced a 49% increase, reaching Rs 2,886.6 crore in FY25 compared to Rs 1,940.7 crore in FY24, while losses significantly reduced by 79% to Rs 243 crore during the same fiscal year.
