PhysicsWallah Gets SEBI Nod For IPO

SUMMARY

PhysicsWallah received SEBI's approval for its IPO within four months of filing the DRHP via the confidential pre-filing route.

As per the latest update on SEBI’s website, the regulator issued observations to the edtech company on July 18

PW’s IPO size would be around INR 4,600 Cr and the company would be valued at $3.7 Bn

Edtech major PhysicsWallah (PW) has received markets regulator SEBI’s approval for its IPO within four months of filing the draft red herring prospectus (DRHP) via the confidential pre-filing route.

As per the latest update on SEBI’s website, the regulator issued observations to the edtech company on July 18.

In SEBI’s parlance, issuance of observations refers to approval to go ahead with the proposed IPO.

Notably, the company’s DRHP is not yet available publicly. Earlier, reports said that the IPO size is expected to be around INR 4,600 Cr ($531 Mn). A big component of the public issue is likely to be the offer for sale (OFS). Further, the IPO is expected to value the company at $3.7 Bn.

Inc42 has reached out to the company to get a timeline for its proposed listing. The story will be updated on receiving a response.

This makes PW the second new-age tech company to receive the approval for the IPO after filing papers confidentially.

The other startup that took this route in the past was foodtech major Swiggy, which received the go ahead from SEBI in September last year. It filed its updated DRHP a couple of days after getting the regulator’s nod.

Meanwhile, a plethora of new-age tech companies have taken the confidential route this year to file their draft IPO papers, including Snapdeal parent AceVector, Shadowfax, and boAt.

Operationally, PW has made a number of new moves since filing its DRHP. Here’s a list of some of those:

Earlier this month, it launched AI learning tool, Aryabhata 1.0, to help students better prepare for JEE Mains exam
Hired Satish Sharma as its new chief marketing officer
Signed MoU with the Delhi government to provide free online NEET & CUET coaching to Over 1.6 Lakh students

On the financial front, the company’s loss increased in FY24. It reported a 13.5X increase in its net loss to INR 1,131.2 Cr during the year from INR 84.06 Cr in FY23. Operating revenue surged 2.6X to INR 1,940.4 Cr in FY24 from INR 744.3 Cr in the previous year.

The company’s updated DRHP, once available publicly, will throw light on its financial performance in FY25.