PhysicsWallah’s IPO: A New Era in Edtech Investments

PhysicsWallah's initial public offering (IPO) had a lukewarm start with just 6% subscription on the first day. The Rs 3,480-crore IPO seeks funds for expansion and offers shares between Rs 103 to Rs 109 each, aiming for a valuation over Rs 31,500 crore. The public issue marks the first IPO launch by a major pure-play edtech firm in India.

The initial public offering (IPO) of PhysicsWallah, an edtech unicorn, saw a tepid response on its first day, garnering a mere 6% subscription. As of Tuesday, bids were placed for 1,05,58,316 out of 18,62,04,143 shares on offer, according to the National Stock Exchange (NSE) data.

Retail investors showed the highest interest with a 27% subscription rate, while non-institutional investors contributed just 2%. Notably, the qualified institutional buyers (QIBs) have yet to participate. Excitingly, this Rs 3,480-crore IPO, set to close on November 13, signals the first major IPO from a pure-play edtech company in India.

PhysicsWallah plans to use the funds to expand its footprint, investing in new and hybrid learning centers, tech infrastructure, and marketing. The company aims to tap a valuation exceeding Rs 31,500 crore by pricing shares between Rs 103 to Rs 109. Amid narrowing losses to Rs 243 crore, the company's revenues surged to Rs 2,887 crore by March 2025.

(With inputs from agencies.)