In the grey market, the IPO premium fell further to 1.25% from an earlier 2.75% over the issue price of Rs 109 per share. Shares of the company are expected to list on the NSE and BSE on November 18.
The IPO consists of a fresh issue of Rs 3,100 crore and an offer-for-sale (OFS) of Rs 380 crore by existing shareholders. Proceeds from the IPO will be used for expanding offline and hybrid learning centres, covering lease and marketing expenses, and upgrading infrastructure, including cloud and server systems.
PhysicsWallah IPO Subscription Status:
Overall: As of 11 on AM Day 3, the IPO had an overall subscription of 16%, according to BSE data.
Retail Individual Investors (RIIs): This segment saw the highest participation, with 71% of the 3.37 crore shares reserved being subscribed.
Non-Institutional Investors (NIIs): The high-net-worth and non-institutional category had a slow start, with only 8% of the 5.05 crore shares subscribed.
Qualified Institutional Buyers (QIBs): No bids were received for the 10.11 crore shares allocated to this segment.
PhysicsWallah IPO grey market trends
In the grey market, the premium (GMP) for PhysicsWallah’s IPO has dropped to 1.25%, down from 2.75% over the issue price of Rs 109 per share.
Based on current grey market activity, this suggests that the shares could list around Rs 110 each. The GMP acts as an early gauge of investor sentiment, indicating expectations for the stock’s performance when it debuts on the NSE and BSE.
The decline in GMP points to a slight moderation in initial investor enthusiasm, although it still indicates a likely positive listing scenario.
PhysicsWallah IPO details and key dates
The Rs 3,480 crore initial public offering (IPO) of PhysicsWallah consists of a fresh issue of 28.44 crore shares worth Rs 3,100 crore and an offer for sale (OFS) of 3.49 crore shares valued at Rs 380 crore.
The IPO opened for subscription on November 11, and will close on November 13. Share allotment in the offer is expected to be completed by November 14, with listing on the NSE and BSE likely on November 18. The price band for the issue has been set between Rs 103 and Rs 109 per share.
Regarding allocation:
Qualified Institutional Buyers (QIBs): Up to 75% of the issue
Non-Institutional Investors (NIIs): 15% of the issue
Retail Individual Investors (RIIs): 10% of the issue
For retail investors, the minimum application is 137 shares, which would require an investment of approximately Rs 14,933 at the upper price band. The maximum limit for retail applicants is 13 lots.
Strong brand, Profitable model
Founded by Alakh Pandey and Prateek Boob, PhysicsWallah has evolved from a single YouTube channel into one of India’s top five edtech companies, offering a broad spectrum of courses for JEE, NEET, UPSC, and various professional upskilling programs. As of June 2025, the platform has 13.7 million subscribers, 4.46 million paid users, and a strong offline footprint with 303 learning centres nationwide.
In FY25, the company reported a 51% year-on-year revenue growth, reaching Rs 3,039 crore, and achieved profitability with a net profit of Rs 243 crore, a significant turnaround from a loss of Rs 1,131 crore in FY24. With an EBITDA margin of 6.7% and a growing student base, PhysicsWallah has established itself as a financially resilient and diversified player in the edtech sector.
Analyst Views: Mixed reactions on PhysicsWallah IPO
Market analysts have offered divergent opinions on the PhysicsWallah IPO. Incred Equities has given a “Subscribe” rating, SBI Securities maintains a “Neutral” stance, while Swastika Investmart has recommended that investors avoid the issue.
Incred Equities noted, “The company has shown strong growth across both online and offline segments. While valuations appear stretched, PhysicsWallah’s robust market position, solid revenue growth, and expanding footprint position it well to disrupt the edtech sector.”
At the upper price band, the IPO is valued at an EV/Sales multiple of 10.7x, based on post-issue capital.
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SBI Securities, meanwhile, stated, “We maintain a Neutral view on the issue and prefer to monitor the company’s performance after listing.”
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)