Physics Wallah IPO: Mixed Investor Response and Modest GMP Trends
Physics Wallah IPO Mixed Investor Response and Modest GMP Trends
India’s leading edtech platform PhysicsWallah Ltd has launched its much-anticipated ₹3,480 crore Initial Public Offering (IPO), marking a major step in its transition from a YouTube-based education startup to a diversified hybrid learning company.
Despite its strong brand and impressive growth, early investor response remains muted, reflecting cautious sentiment toward new-age tech stocks.
Key Takeaways On Physics Wallah IPO
- Objective: Expansion of offline centres, tech infrastructure, and marketing
- IPO Size: ₹3,480 crore (₹3,100 crore fresh issue + ₹380 crore offer for sale)
- Price Band: ₹103–₹109 per share
- Market Valuation: Around ₹31,500 crore at the upper price band
- Subscription (Day 2): Overall 9–11% subscribed so far
- GMP (Grey Market Premium): Around ₹1.5 per share (~1.3% potential gain)
- Listing Date: Expected on November 18, 2025
Physics Wallah Company Overview
Founded by Alakh Pandey in 2016 as a YouTube channel, PhysicsWallah has evolved into a major edtech enterprise offering online, offline, and hybrid courses across JEE, NEET, UPSC, and various skill-based programs. With over 13.7 million YouTube subscribers and 303 offline centres, the company has become one of India’s fastest-growing education brands.
PhysicsWallah reported revenues of ₹2,887 crore in FY25, up from ₹744 crore in FY23 a growth of nearly 287% in two years. The company also reduced its net loss from ₹1,131 crore in FY24 to ₹243 crore in FY25, driven by improved operational efficiency and expanding hybrid operations.
Physics Wallah IPO Details and Valuation
The price band for the IPO is set between ₹103 and ₹109 per share, with investors required to apply for a minimum of 137 shares, translating to a minimum investment of ₹14,933 at the upper band. At this valuation, the company seeks a Price-to-Sales (P/S) multiple of around 10x, which analysts consider expensive given its limited profitability record.
The allotment date is expected on November 14, while the listing on both NSE and BSE is scheduled for November 18, 2025.
Physics Wallah Subscription Status and Market Sentiment
By the second day of bidding (November 12), the IPO had been subscribed only 0.11 times overall, indicating subdued demand. The retail investor segment reached 0.51 times, while institutional participation (QIB) remained minimal. The employee quota, however, was subscribed 1.57 times, showing stronger internal confidence.
The Grey Market Premium (GMP) fell from around ₹4 per share to ₹1.5, suggesting limited listing gains of roughly 1.38%. Analysts note that the tepid GMP reflects cautious investor sentiment, similar to other tech IPOs launched this year.
Physics Wallah Growth Drivers and Use of Funds
The company plans to utilize the IPO proceeds as follows:
- ₹460 crore for expanding offline and hybrid centres across India
- ₹548 crore for lease payments at existing centres
- ₹710 crore for marketing and brand building
- ₹200 crore for upgrading cloud and technology infrastructure
- ₹47 crore for investments in subsidiaries like Xylem Learning and Utkarsh Classes
PhysicsWallah’s strategy focuses on growing its hybrid model, attracting students online through free content, and converting them to paid offline learners. The brand aims to strengthen its physical presence in Tier-2 and Tier-3 cities, tapping into India’s rapidly expanding education market.
Physics Wallah IPO Risks and Outlook
Key challenges include dependence on student enrollments, faculty retention, and high operational costs of offline centres. The competitive edtech market and slower investor enthusiasm also add uncertainty to the near-term outlook.
However, analysts highlight PhysicsWallah’s strong community trust, rapid scalability, and low-cost learning model as long-term strengths that could help it sustain growth once profitability stabilizes.
Physics Wallah IPO Expert View
Market experts believe PhysicsWallah’s fundamentals are solid, but the IPO appears fairly valued at best. “The company’s brand loyalty and hybrid reach are unmatched, yet investors should view this as a long-term story, not a short-term gain opportunity,” analysts said.
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