The IPO comprises a fresh issue of Rs 3,100 crore and an offer for sale of Rs 380 crore by existing shareholders. The company plans to utilise the proceeds mainly for expanding its offline and hybrid learning centres, lease payments, marketing, and infrastructure investments, including cloud and server upgrades.
GMP hints at mixed trends
According to market observers, the grey market premium (GMP) for PhysicsWallah stands at around Rs 3–4, indicating a modest 3% premium over the upper end of the price band — reflecting cautious optimism after subdued debuts by other new-age companies like Lenskart.
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 platforms, offering courses for JEE, NEET, UPSC, and professional upskilling categories. As of June 2025, it had over 13.7 million subscribers, 4.46 million paid users, and a vast network of 303 offline centres across India.
The company reported a 51% jump in revenue to Rs 3,039 crore in FY25 and turned profitable, posting a net profit of Rs 243 crore, compared with a Rs 1,131 crore loss in FY24. With EBITDA margin improving to 6.7% and expanding student base, PhysicsWallah stands out among edtech peers for its strong financial turnaround and diversified product portfolio.
Analyst view: Divided opinions
Analysts tracking the issue gave divided reviews. While Incred Equities offered a subscribe rating, SBI Securities had a netural view. Meanwhile, Swastika Investmart urged investors to avoid the IPO.
“The company has demonstrated significant growth over the years in both online and offline business verticals. The valuation of PW seems to be stretched but looking at the strong moat and topline/business expansion, the company is well-placed to disrupt the edtech space,” said Incred.
At the upper end of the price band, the initial public offer (IPO) is valued at EV/sales multiple of 10.7x based on post-issue capital.
“We maintain a Neutral view on the issue and would like to monitor the performance of the company post listing,” SBI Securities said.
Subscription structure and allocation
The IPO has reserved up to 75% of the issue for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors.
Retail investors can bid for a minimum of 137 shares, translating to an investment of Rs 14,933 at the upper end. The maximum retail bid is capped at 13 lots.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
