The much-anticipated initial public offering of edtech giant PhysicsWallah entered its second day of subscription on Wednesday, showing steady investor interest across different segments. The public offering, which opened for bidding on Tuesday, November 11, will remain available for subscription until Thursday, November 13.
Subscription Status Across Investor Categories
As of the first bidding day, the overall subscription rate for PhysicsWallah IPO stood at 7%, with retail investors demonstrating the strongest interest. The retail segment witnessed a 33% subscription rate, significantly outpacing other categories in early bidding.
The Non-Institutional Investors category received 2% of bids, while the Qualified Institutional Buyers portion is yet to see any bids. In a positive development, the employee segment was oversubscribed at 1.11 times, indicating strong confidence from within the organization.
IPO Structure and Financial Details
The PhysicsWallah IPO features a price band established between ₹103 and ₹109 per share. The offering comprises two components: a fresh issue of equity shares worth ₹3,100 crore and an offer-for-sale of shares totaling up to ₹380 crore from the company's founders.
Both founders, Alakh Pandey and Prateek Boob, plan to sell shares worth ₹190 crore each through the OFS. Currently, each founder maintains a 40.31% stake in the company, reflecting their significant continued involvement despite the partial divestment.
Company Background and Financial Performance
PhysicsWallah has established itself as a leading player in India's competitive test preparation market. The company offers comprehensive courses for prestigious examinations including JEE, NEET, GATE, and UPSC, along with various upskilling programs. Their multi-channel delivery approach encompasses online platforms like YouTube, their official website, and mobile applications, complemented by technology-enabled offline centers and hybrid learning models.
The company's financial trajectory shows remarkable improvement. Backed by prominent investors including WestBridge Capital, Hornbill, and GSV Ventures, PhysicsWallah managed to significantly reduce its losses to ₹243 crore for the fiscal year ending March 2025, down dramatically from ₹1,131 crore in the previous year. Simultaneously, the company achieved impressive revenue growth, with earnings climbing to ₹2,887 crore from ₹1,941 crore in the corresponding period.
The current grey market premium for PhysicsWallah shares stands at ₹1.5, reflecting market sentiment about the IPO's potential listing performance. As the subscription period continues, market observers will closely monitor the bidding patterns, particularly from institutional investors who have yet to enter the fray significantly.
