PhysicsWallah’s management has admitted that “safety of students is becoming an area of concern” in the coaching industry, adding that past incidents have tested its reputation and public image. Among the most serious was a 2024 case where a ceiling fan fell on a student at one of its Delhi centres, leading to an FIR for negligent conduct against an employee. “This matter has now been settled and disposed of,” the company said, noting that corrective steps have since been taken.
But this wasn’t the only risk unique to the company’s business model. In 2023, a video circulated online showing a staff member pushing a student at one of its offline centres. The staffer was later terminated. In another instance the same year, a student was filmed threatening a faculty member with a slipper during a video call, an episode that again raised concerns over campus discipline and teacher safety.
The company also reported a 2024 incident in which an unidentified odour in a classroom at one of its Utkarsh centres forced an emergency evacuation, with a few students taken to hospitals for checks.
PhysicsWallah said it responded quickly, notified parents, and introduced new standard operating procedures (SOPs) for facility maintenance. However, the company warned that “no assurance can be provided that such accidents or safety breaches will not occur in the future.”
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These disclosures, though uncommon for an IPO-bound company, highlight the sensitive nature of an edtech firm that rapidly expanded from online to offline teaching.
PhysicsWallah runs more than 300 hybrid and physical centres across India and employs over 18,000 people. The offline push has helped it build a direct connection with students but has also introduced new risks, physical safety, misconduct, and reputation management.
The company said it has implemented stronger safety systems, background checks, and grievance redressal mechanisms, but it acknowledges that “any negative publicity regarding safety and security of students may adversely affect student enrolments, business and financial condition.”
IPO details
The Rs 3,480 crore issue comprises a fresh issue of Rs 3,100 crore and an offer for sale of Rs 380 crore. The price band is set at Rs 103–109 per share. The tentative listing date is November 18. Kotak Mahindra Capital is the book-running lead manager, and MUFG Intime India is the registrar.
The company plans to use the IPO proceeds to expand its offline footprint and strengthen its hybrid model. About Rs 460 crore will go towards setting up new centres, Rs 548 crore towards lease payments for existing ones, and Rs 710 crore towards marketing initiatives.
PhysicsWallah, which began as a YouTube channel, now claims over 13.7 million subscribers and 4.46 million paid users. Its revenue grew 51% in FY25 to Rs 3,039 crore, while its losses narrowed to Rs 243 crore from Rs 1,131 crore in FY24.
The Indian education market is a dominant global sector, valued at Rs 15-16 lakh crore in fiscal 2025 and is projected to expand significantly at a CAGR of 10% to reach Rs 24-26 lakh crore by fiscal 2030. This could provide the company an opportunity to capture the tailwinds.
Anand Rathi said the IPO can be subscribed for long term, given the company intends to keep innovating to introduce value added services that enable upselling of additional offerings at minimal incremental cost.
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