PhysicsWallah's Public Offering Reaches Crucial Final Day
The initial public offering (IPO) for the edtech giant PhysicsWallah is now in its final stage. The subscription window, which opened for investors on Tuesday, November 11, is set to close today, Thursday, November 13. All eyes are on whether the third day of bidding will provide the necessary momentum for the issue to be fully subscribed.
Subscription Status and Market Response
As the bidding process entered its third and final day, the overall response to the PhysicsWallah IPO has been described as lackluster. However, market observers suggest that the last day could potentially see a surge in applications, leading to the full subscription of the issue. A breakdown of the subscription data reveals a mixed picture. The retail investor segment has been the most active, receiving over 50% of the bookings so far. In a positive sign, the portion reserved for the company's employees has been completely filled.
The current grey market premium (GMP) for the PhysicsWallah IPO stands at ₹1.25. This figure is closely watched by investors as an indicator of the premium they might expect when the shares list on the stock exchanges.
IPO Details and Promoter Stake Sale
The PhysicsWallah IPO comes with a price band set between ₹103 and ₹109 per share. The public offering is a combination of fresh capital and a partial exit by the founders.
The total size of the IPO includes a fresh issue of equity shares worth ₹3,100 crore. This capital is expected to be used for the company's future growth initiatives. Additionally, there is an Offer for Sale (OFS) component of up to ₹380 crore from the promoters.
The founders, Alakh Pandey and Prateek Boob, are each selling shares worth ₹190 crore through this OFS. Following this sale, both promoters will continue to hold a significant 40.31% stake in the company they built, demonstrating their continued belief in its long-term prospects.
The final subscription numbers will be keenly awaited by the market to gauge investor appetite for Indian edtech companies in the current financial climate.
