[Update] PhysicsWallah IPO: Issue Subscribed 13% On Day 2

Update | November 12, 18:00 IST

PhysicsWallah’s (PW) IPO continued to see muted investor interest on the second day of bidding. PW’s issue attracted 2.38 Cr bids against the 18.62 Cr shares on offer, translating to a mere 13% subscription of the public issue. 

In the lead, retail investors (RIIs) have placed the highest 1.96 Cr bids against the 3.37 Cr shares reserved for them. These investors have subscribed their quota by only 58% as of now.

Meanwhile, interest from non institutional investors (NIIs) picked up slightly on the second day, with these investors bidding for 28.02 Lakh shares against the 5.05 Cr shares earmarked for them. 

NIIs have subscribed their quota by a mere 6% subscription till now. The interest from qualified institutional buyers (QIBs) was even more muted, with these investors placing bids for only 6,302 shares against the 10.12 Cr shares reserved for them.

Meanwhile, PW’s employees oversubscribed their quota by 1.77X on day two, placing bids for 13.32 Lakh against the 7.53 Lakh reserved for them. 

Original | November 12, 12:46 IST

Edtech unicorn PhysicsWallah’s IPO continued to see a tepid response and was subscribed 10% by 11:45 IST on the second day of bidding. The issue received bids for 1.86 Cr shares against 18.62 Cr shares available for subscription.

The employees’ category saw the highest interest with 1.45X subscription. The employees placed bids for 10.94 Lakh shares against 7.52 Lakh shares on offer.

Retail individual investors’ (RII) segment was subscribed 45%, getting bids for 1.57 Cr shares against 3.37 Cr shares on offer.

The non-institutional investors’ (NII) portion was subscribed just 4%, getting bids for 18 Lakh shares against 5.05 Cr shares reserved. Meanwhile, qualified institutional buyers (QIBs) placed bids for a mere 6,302 shares against 10.11 Cr shares on offer. 

PhysicsWallah has set a price band of INR 103 to INR 109 per share for the issue. The IPO will remain open for subscription till tomorrow, and its shares are expected to list on the bourses on November 18. 

The public issue comprises a fresh issue of up to INR 3,100 Cr and an OFS component of up to INR 380 Cr. 

PhysicsWallah plans to use INR 1,088 Cr from the proceeds to expand its offline network by setting up new coaching centres and managing leases. It has earmarked INR 710 Cr for advertising and brand building. 

At the upper end of the price band, the company is seeking a valuation of INR 31,169 Cr (about $3.5 Bn), roughly 25% higher than its last round. Cofounders Alakh Pandey and Prateek Maheshwari, who held a cumulative 80% stake pre-IPO, will together offload shares worth INR 380 Cr. 

Among the institutional investors, PE firm WestBridge is one of the largest investors in the company with a 6.4% stake. Its affiliate entity Setu AIF Trust owns another 1.39% stake. 

Hornbill Capital holds 4.42% stake, while GSV Ventures’ shareholding stands at 1.79%. VC firm Lightspeed holds 1.79% stake in PhysicsWallah. 

The edtech unicorn raised INR 1,562.8 Cr from anchor investors on Monday (November 10)by issuing 14.33 Cr shares at INR 109 apiece. 

On the financial front, PhysicsWallah posted a net loss of INR 125.5 Cr in Q1 FY26, up 78% YoY. Operating revenue rose 33% YoY to INR 847 Cr.

PhysicsWallah's Financial Trajectory

Source: Inc42 Datalabs

POWERED by

In FY25, the company managed to narrow its consolidated net loss by 78% to INR 243.3 Cr from INR 1131.1 Cr in FY24. Its operating revenue surged 49% to INR 2,886.6 Cr during the year under review from INR 1,940.7 Cr in FY24.