Copyright news18
PhysicsWallah IPO Opens Today: Edtech major PhysicsWallah is set to launch its Rs 3,480-crore initial public offering (IPO) tomorrow, Tuesday, November 11. The IPO will conclude on November 13. The price band has been fixed in the range of Rs 103-Rs 109 apiece. The IPO includes a fresh issue of Rs 3,100 crore and an offer-for-sale (OFS) of Rs 380 crore by co-founders and promoters Alakh Pandey and Prateek Maheshwari. Together, the promoters currently hold 80.62 per cent of the company, which will reduce to 72 per cent post-IPO. Notably, none of the early investors will sell their stakes in this offering. PhysicsWallah IPO Key Dates Its share allotment will be finalised on Friday, November 14, and the market listing will take place on November 18 on both the BSE and the NSE. PhysicsWallah IPO GMP According to market observers, unlisted shares of PhysicsWallah Ltd are currently trading at Rs 112 apiece in the grey market, which is a premium (or GMP) of Rs 3 or 2.75% over the upper IPO price of Rs 109, indicating weak listing. The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price. Think Investments Infuses Rs 136 Crore In Pre-IPO Round Global investment firm Think Investments has invested a little over Rs 136 crore in edtech unicorn PhysicsWallah as part of a pre-IPO funding round. Think Investments is a USD 4 billion global investment firm, focusing on backing technology-driven early-stage businesses. In India, Think Investments has built a diverse portfolio with investments in some of the prominent companies, including Swiggy, FirstCry, Urban Company, PharmEasy, Experian, Spinny, NSE, Star Health, Meesho, Rapido, Chaayos, and Dream11. PhysicsWallah IPO: Should You Apply? Brokerages have expressed mixed views on the much-awaited PhysicsWallah (PW) IPO, with some recommending a cautious approach while others see long-term value in the edtech firm’s growth story. SBI Securities maintained a ‘Neutral’ stance, saying it would prefer to monitor the company’s performance post listing. The brokerage noted that PhysicsWallah, which offers test-preparation and upskilling courses, ranks among India’s top five edtech companies by revenue. However, it pointed out that the company’s net loss widened from Rs 81 crore in FY23 to Rs 216 crore in FY25, driven by higher depreciation and impairment losses on financial assets. “At the upper price band of Rs 109, the issue is valued at an EV/Sales multiple of 9.7x based on the post-issue capital, which seems fairly valued,” SBI Securities said. Angel One also assigned a ‘Neutral’ rating, highlighting that PhysicsWallah’s financials cannot be assessed on a P/E basis since it remains a loss-making company with no listed peers in India’s edtech space. “While the company continues to deliver strong revenue growth and enjoys high brand recall, profitability remains constrained by rising competition and elevated scaling costs. Hence, we recommend investors to wait for clearer earnings visibility before taking a long-term position,” it said. Angel One further noted that at the upper end of the price band, PW trades at a premium to traditional education players such as MT Educare and CL Educate, a valuation justified only if the company sustains growth of over 25-30% CAGR in the next three years. “The listing will test whether India’s edtech can transform from valuation-driven exuberance to long-term, profit-backed credibility,” added Harshal Dasani, Business Head at INVasset PMS. In contrast, Incred Equities recommended subscribing to the IPO, stating that PhysicsWallah is “reshaping the industry’s economics”. The brokerage said, “At the upper end of the price band, the IPO is valued at an EV/Sales multiple of 10.7x (based on post-issue capital). This appears demanding, but when placed in the broader context of India’s listed new-age peers, the valuation is broadly in line.” It compared PW’s valuation to other digital-first players such as PB Fintech (14.4x), Nykaa (8.5x), and Eternal (14.6x), arguing that the market continues to assign premium valuations to scalable, asset-light tech platforms. “The company’s ability to blend online scalability with physical reach gives it an advantage over pure-play digital models. As offline centres mature and yield stable cash flows, and as employee and professional costs stabilise, we expect steady improvement in operating profitability,” Incred Equities added.
