physicswallah has acquired an additional 11% stake in Guiding Light Education Technologies Private Limited (Sarrthi IAS) for a cash consideration of INR 71,81,47,100. The Board of Directors of Physicswallah Limited approved the execution of an addendum to the Share Purchase Agreement and the completion of Tranche II acquisition on July 16, 2026. This strategic move increases the company's shareholding in Sarrthi IAS from 40% to 51%, thereby converting Sarrthi IAS into a subsidiary of Physicswallah Limited.

The acquisition aligns with Physicswallah's objective to strengthen its presence in the UPSC and civil services examination preparation segment. Sarrthi IAS, incorporated on June 20, 2023, provides online and offline coaching and test preparation services for civil services and other competitive examinations under the "Sarrthi IAS" brand. The transaction was undertaken at arm's length based on an independent valuation report and does not constitute a related party transaction.

Financial Overview of Sarrthi IAS

Sarrthi IAS has demonstrated significant growth in its financial performance over the last three years. The following table details the turnover figures reported by the entity:

As per the disclosures, the paid-up share capital of Sarrthi IAS stands at INR 1,00,000, with a net worth of INR 33,96,10,548 and a turnover of INR 76,51,61,325.

Transaction Details

The current acquisition involves the purchase of 1,100 equity shares. This is the second tranche of a larger agreement wherein Physicswallah Limited aims to acquire up to 85% of the fully diluted equity share capital of Sarrthi IAS in six tranches by FY2031. The valuation methodology and purchase consideration for the remaining tranches will continue to be determined in accordance with the EBITDA-based mechanism prescribed under the Transaction Documents.

Physicswallah Limited has granted 2,23,100 stock options to eligible employees under its Physicswallah Limited Employees' Stock Option Plan 2025. The Nomination and Remuneration Committee approved the grant on July 11, 2026, through circulation, with the options effective from July 10, 2026. This move aims to incentivize employees by offering them an opportunity to participate in the company's growth.

The scheme is compliant with the SEBI (SBEB) Regulations, 2021. Each stock option granted is convertible into one fully paid-up equity share with a face value of INR 1. The exercise price for these options has been fixed at INR 1 per share. The total number of equity shares covered by these options is 2,23,100.

The vesting of these options will occur as per the schedule determined by the Nomination and Remuneration Committee and as specified in the grant letter and the ESOP Plan 2025. The options can be exercised from the respective vesting dates during the employee's continuous tenure with the company, unless otherwise specified in the plan.

Key Details of the Grant

The ESOP Plan 2025 outlines provisions for handling options in cases of death, permanent incapacity, resignation, termination, or retirement. Additionally, adjustments to the number of options may be made in the event of corporate actions such as rights issues, bonus issues, share splits, mergers, or reorganizations. Equity shares allotted upon the exercise of these options will not be subject to lock-in and will rank pari passu with existing shares from the date of allotment.