The eagerly anticipated initial public offering (IPO) of PhysicsWallah is preparing to open for public subscription on November 11, marking a pivotal chapter for India's burgeoning edtech industry. Although there is considerable curiosity among investors, preliminary indications suggest a lackluster market opening for the platform renowned for its budget-friendly test-prep courses.
In the grey market, unlisted shares of PhysicsWallah were changing hands at a modest 2.75% premium compared to the IPO price. This is a decline from 3.67% just a day prior and 4.59% from the previous week, as reported by Investorgain. Additionally, IPO Watch has highlighted a parallel trend, noting a premium of 3.66%, signaling that early excitement may be diminishing before the official listing.
PhysicsWallah is looking to raise Rs 3,480 crore through this IPO, which breaks down into a fresh issue of Rs 3,100 crore along with an offer for sale (OFS) amounting to Rs 380 crore. The IPO will be open until November 13, featuring a price band ranging from Rs 103 to 109 per share. Investors have the option to bid for a minimum of 137 shares, equating to an initial investment of Rs 14,933 at the higher price point.
Aiming for a valuation exceeding Rs 31,500 crore at the highest price bracket, the allotment results are expected by November 14, with shares anticipated to debut on the stock exchange on November 18.
Founded by Alakh Pandey and Prateek Boob, PhysicsWallah has swiftly ascended to one of India's top five edtech firms by revenue, providing a combination of online and offline education solutions. However, its financial reports reveal escalating losses—from Rs 81 crore in FY23 to Rs 216 crore projected for FY25—attributed mainly to rising depreciation and impairment costs.
Market analysts observe that while the IPO seems reasonably valued, there are underlying concerns about the company's ability to sustain momentum against a backdrop of intensifying competition in the edtech arena. The reliance on its founders and the necessity for continual adaptation to evolving exam patterns could pose challenges in the future.
As the subscription period kicks off, investors will be keenly observing whether PhysicsWallah's success in the classroom can be reflected on the stock exchange.
A major disruption in oil and gas supply after the Strait of Hormuz closure is expected to trigger a
Iran denies active ceasefire talks with the U.S. as Trump claims negotiations are ongoing raising co
Two suspects arrested after a 19-year-old Quebec tourist was shot dead in the Dominican Republic dur
Newly released documents reveal RCMP used paid informers to spy on Dene leaders in the 1970s raising
