PhysicsWallah IPO: A Major Test for India's Edtech Sector
The Indian edtech landscape is witnessing a significant development as PhysicsWallah, one of the country's leading education platforms, prepares to launch its highly anticipated initial public offering (IPO) on Tuesday, November 11. This ₹3,480 crore public issue marks a crucial moment for the startup ecosystem, arriving amidst cautious investor sentiment following the collapse of rival Byju's.
IPO Structure and Key Details
The ₹3,480 crore book build issue comprises two distinct components. A fresh issue of 28.44 crore shares aims to raise ₹3,100 crore for the company's growth initiatives. Simultaneously, an offer for sale (OFS) of 3.49 crore shares, valued at ₹380 crore, will see promoters Alakh Pandey and Prateek Boob divesting part of their holdings.
Investors can participate in the IPO within a price band of ₹103 to ₹109 per share. The subscription window remains open from November 11 to November 13, with the final allotment expected on Friday, November 14. Successful applicants will receive shares on Monday, November 17, and the stock is scheduled to list on both BSE and NSE on Tuesday, November 18.
The reservation policy allocates 75% of the net issue to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and the remaining 10% to retail investors. The minimum investment for retail participants is ₹14,933 for one lot of 137 shares at the upper price band.
Financial Performance and Market Sentiment
PhysicsWallah's financial journey reveals a mixed picture that potential investors must consider carefully. While the company has demonstrated impressive revenue growth—soaring from ₹744.32 crore in FY23 to ₹2,886.64 crore in FY25—it continues to grapple with significant losses.
The company reported a loss of ₹243.26 crore in FY25, showing improvement from the staggering ₹1,131.13 crore loss in FY24 but still substantial. For the first three months of FY26, the loss stood at ₹127.01 crore against revenue of ₹847.01 crore.
Market sentiment appears cautious, reflected in the grey market premium (GMP) halving to ₹4 as of November 10 from its peak of ₹9 just days earlier. This translates to an estimated listing price of ₹113 per share, representing a modest 4% premium over the upper price band.
Utilization of IPO Proceeds and Future Plans
According to the Red Herring Prospectus (RHP), PhysicsWallah plans to deploy the net proceeds from the fresh issue towards several strategic objectives. The company will allocate funds for capital expenditure on new offline and hybrid centers, including fit-outs and lease payments for existing identified locations.
Additional allocations include investment in subsidiary Utkarsh Classes and Edutech Private Limited, enhancement of server and cloud infrastructure, marketing initiatives, and pursuing inorganic growth through acquisitions. The company also intends to use a portion for general corporate purposes.
PhysicsWallah's business model focuses primarily on test preparation courses for competitive examinations and upskilling programs. The platform boasts one of India's largest student communities, with its main YouTube channel, "Physics Wallah-Alakh Pandey," commanding nearly 13.7 million subscribers as of July 15, 2025.
As the edtech sector navigates a challenging phase, the PhysicsWallah IPO represents a critical test for investor confidence in education technology companies. The outcome will likely influence the trajectory of other startups considering public listings in the evolving Indian market landscape.
