PhysicsWallah IPO: A Major Leap for Indian Edtech
The Indian edtech landscape witnessed a significant event as PhysicsWallah Ltd launched its highly anticipated initial public offering (IPO) on Tuesday. The company aims to mobilize more than ₹3,400 crore from the primary market, marking a pivotal moment in its growth journey from a popular YouTube channel to a formidable educational institution.
IPO Details: Dates, Price, and Structure
The public subscription window for the PhysicsWallah IPO is open from November 11 to November 13. Investors can expect the allotment of shares to be finalized around November 14, with the official listing on both the BSE and NSE scheduled for November 18.
The company has set a price band of ₹103 to ₹109 per share. At the upper end of this band, the total issue size reaches ₹3,480 crore. This substantial amount comprises a fresh issue of 28.44 crore equity shares worth ₹3,100 crore and an offer-for-sale (OFS) component of 3.49 crore shares aggregating to ₹380 crore.
For retail investors, the minimum investment required is ₹14,933, with a lot size of 137 shares. Kotak Mahindra Capital Co. Ltd. is managing the book-building process, while MUFG Intime India Pvt. Ltd. is serving as the official registrar for the IPO.
Initial Subscription and Market Sentiment
On the first day of the bidding process, the IPO saw a cautious start. As of 10:25 AM on Tuesday, the overall issue was subscribed by 1%, according to NSE data. A closer look reveals that the Retail Individual Investors (RIIs) category showed more interest, with a 7% subscription rate, while the Non-Institutional Investors (NII) segment was at 1%. Notably, Qualified Institutional Buyers (QIBs) had not yet placed their bids at that time.
The sentiment in the unlisted market also appears muted. The current Grey Market Premium (GMP) for PhysicsWallah shares is ₹3 per share. This modest premium indicates that the shares are trading at approximately ₹112 in the grey market, which is a 2.75% premium over the upper end of the IPO price band.
Expert Reviews and Financial Health
PhysicsWallah offers test-preparation courses for competitive exams and various upskilling programs through online, offline, and hybrid models. The company boasts an impressive 13.7 million subscribers on its main YouTube channel as of July 2025 and ranks among the top five edtech companies in India by revenue.
Financially, the company has demonstrated explosive growth over the last three years, with Sales and EBITDA CAGR of 96.9% and 88.8%, respectively. However, its net loss has widened from ₹81 crore in FY23 to ₹216 crore in FY25, primarily due to increased depreciation expenses and impairment losses.
Brokerage firm Anand Rathi has given the IPO a 'Subscribe - Long Term' rating. They note that at the upper price band, the company is valued at 10.8x FY25 P/S, resulting in a post-issue market capitalization of ₹3,11,699 million. They consider the IPO to be fully priced but see long-term potential.
Echoing a similar sentiment, InCred Equities recommended subscribing to the issue. They acknowledged that the valuation seems stretched at an EV/sales multiple of 10.7x but highlighted the company's strong market position and potential for business expansion. They believe that as the company scales up, profitability should follow in the medium to long term.
This IPO represents a major test for the Indian edtech sector, and its performance will be closely watched by investors and industry analysts alike.
