PhysicsWallah IPO Enters Critical Phase as Subscription Window Narrows
The much-anticipated public offering for Edtech unicorn PhysicsWallah opened for subscription on Tuesday, November 11, and will conclude on Thursday, November 13. As the bidding enters its final phase, investors are closely monitoring the subscription trends and grey market premiums.
Subscription Status: Day 2 Performance
The response to the PhysicsWallah IPO has been relatively muted so far, with the subscription rate reaching 12% by the second day of bidding. However, market analysts suggest that the third day could potentially witness full subscription of the issue.
Breaking down the investor categories, the retail segment has demonstrated strong interest with over 57% of bookings, indicating significant retail investor confidence in the Edtech giant. The employee segment has been completely filled, showing internal faith in the company's prospects.
Meanwhile, the Non-Institutional Investors (NII) portion has received 5% of bids, while the Qualified Institutional Buyers (QIB) segment is yet to see significant action. The employee portion has been subscribed 1.75 times, reflecting strong participation from company staff.
IPO Structure and Allocation Details
PhysicsWallah has established a clear allocation strategy for its public issue. The company has allocated a minimum of 75% of shares for qualified institutional buyers (QIB), while setting aside up to 15% for non-institutional investors (NII). Retail investors have been reserved no more than 10% of the total offering.
Additionally, the company has demonstrated its commitment to employees by setting aside shares worth up to ₹70 million specifically for staff members. The IPO price band has been fixed between ₹103 and ₹109 per share, making it accessible to a wide range of investors.
Grey Market Premium and Listing Expectations
The current PhysicsWallah IPO GMP stands at ₹1.25, indicating a modest premium in the unofficial market. Considering the upper end of the IPO price band at ₹109 and the current grey market premium, the estimated listing price is projected at ₹110.25 per share, representing a 1.15% increase over the IPO price.
Market observers note that today's IPO GMP shows a decline compared to previous sessions and is anticipated to decrease further. Analysis of grey market trends from the last nine sessions reveals that the lowest GMP has been ₹1.25, while the highest reached ₹9.00.
The 'grey market premium' serves as an important indicator of investor sentiment, reflecting their willingness to pay above the official issue price for shares before formal listing.
Key Dates and Timeline
Investors should mark important dates in their calendars. The basis for share allotment is expected to be determined on Friday, November 14, bringing clarity to successful applicants.
The refund process for unsuccessful investors will commence on Monday, November 17, providing timely returns to those who didn't receive allocation. On the same day, after processing refunds, shares will be credited to the demat accounts of successful allottees.
The highly anticipated listing of PhysicsWallah shares on both BSE and NSE is scheduled for Tuesday, November 18, marking a significant milestone for the Edtech company.
IPO Composition and Company Background
The PhysicsWallah IPO consists of a new equity share issue valued at ₹3,100 crore, complemented by an Offer for Sale (OFS) of up to ₹380 crore from the promoters.
Founders Alakh Pandey and Prateek Boob will each sell shares worth ₹190 crore through the OFS component. Currently, both promoters maintain a 40.31 percent stake in the company, demonstrating their continued significant involvement.
The Noida-based Edtech firm submitted its draft documents to Sebi in March through the confidential pre-filing process, receiving regulatory approval in July. This approach allowed PhysicsWallah to delay public disclosure of IPO information until later stages, providing strategic flexibility.
The funds raised through this public offering will be strategically deployed to support the company's expansion and growth initiatives, potentially strengthening its position in the competitive Edtech landscape.
As the subscription window prepares to close, all eyes remain on whether the final day of bidding will generate the momentum needed for full subscription, particularly from institutional investors who have yet to show significant participation.
