PhysicsWallah's ₹3,480 crore initial public offering launched sluggishly Tuesday, subscribing a mere 2% on day one, as investors weighed edtech recovery against valuation stretch in a post-pandemic landscape.
The three-day issue, priced at ₹103-₹109 per share, saw retail investors lead with 11% uptake in their quota, while non-institutional lagged at 1% and QIBs at under 0.5%, per NSE data. Anchor round fetched ₹1,563 crore from heavyweights like ICICI Prudential and Nomura, signaling institutional buy-in.
Grey market premium hovered at ₹3, implying a 2.75% gain at the top band, a far cry from 10% hype pre-open. Bidding closes November 13, with allotment November 15 and listing November 19.
Co-founder Alakh Pandey built PhysicsWallah into a ₹5,000 crore valuation juggernaut since 2016, blending YouTube tutorials with offline centers. Fiscal 2025 revenues climbed 40% to ₹1,800 crore, with profits at ₹250 crore—margins up to 14% on premium JEE/NEET courses. User base swelled to 15 million, 30% via app subscriptions.
Funds will expand 100 centers and AI adaptive learning, targeting Tier-2 cities where 60% of aspirants reside. The OFS component lets early investors like Westbridge cash out ₹1,200 crore.
Analysts temper enthusiasm. Emkay rates it "subscribe" at ₹130, forecasting 25% CAGR on offline pivot post-Byju's woes. Edelweiss flags competition from Unacademy and regulatory caps on coaching fees. At 20 times sales, it's pricier than peers but justified by 80% repeat enrollments.
