PhysicsWallah IPO Concludes with Lukewarm Response, GMP Dips to Rs 1.25
PhysicsWallah's IPO closed on November 13 with a 13% subscription rate. The Rs 3,480 crore IPO included a fresh issue of Rs 3,100 crore and an offer-for-sale of Rs 380 crore. The price band was set at Rs 103-109 per share. The grey market premium dropped to Rs 1.25, suggesting an estimated listing price of Rs 110.25 with expected gains of 1.15%. Share allotment is expected on November 14, with listing scheduled for November 18 on NSE and BSE. Despite revenue growth, the company reported a net loss of Rs 127.01 crore in the June quarter and Rs 243.26 crore in FY25, but achieved a positive EBITDA of Rs 193.2 crore in FY25.
*this image is generated using AI for illustrative purposes only.
The initial public offering (IPO) of PhysicsWallah Ltd., a prominent player in the ed-tech sector, has wrapped up with a muted response from investors. The IPO, which closed on November 13, saw an overall subscription of just 13% after two days, indicating a tepid interest in the company's public debut.
IPO Details and Grey Market Performance
The mainboard IPO comprised a fresh issue of Rs 3,100 crore and an offer-for-sale of Rs 380 crore. The company had set the price band at Rs 103-109 per share. However, the grey market premium (GMP) has seen a significant drop, settling at Rs 1.25. This suggests an estimated listing price of Rs 110.25 per share, with expected gains of a mere 1.15%.
| IPO Component | Amount (in Rs crore) |
|---|---|
| Fresh Issue | 3100.00 |
| Offer for Sale | 380.00 |
| Total IPO Size | 3480.00 |
| Particulars | Details |
|---|---|
| Price Band | Rs 103 - Rs 109 |
| Grey Market Premium | 1.25 |
| Estimated Listing Price | 110.25 |
| Expected Gains | 1.15% |
Key Dates
- IPO Conclusion: November 13
- Expected Share Allotment: November 14
- Scheduled Listing Date: November 18 (on NSE and BSE)
About PhysicsWallah
Founded in 2016, PhysicsWallah has made a name for itself by providing affordable educational courses for competitive examinations. The company's business model focuses on making quality education accessible to a wider audience.
Financial Performance
While PhysicsWallah has shown significant revenue growth, it's important to note that the company is currently operating at a loss. Here's a snapshot of their recent financial performance:
| Period | Total Income (Rs crore) | Net Loss (Rs crore) |
|---|---|---|
| June Quarter | 905.41 | 127.01 |
| FY25 | 3039.09 | 243.26 |
Despite the net loss, it's worth noting that the company achieved a positive EBITDA of Rs 193.2 crore in FY25, indicating operational efficiency.
Market Implications
The lukewarm response to PhysicsWallah's IPO and the declining grey market premium could be indicative of several factors, including market sentiment towards ed-tech companies, overall economic conditions, or specific concerns about the company's financial performance. Investors seem to be adopting a cautious approach, possibly influenced by the company's current loss-making status despite its revenue growth.
As PhysicsWallah prepares for its market debut, all eyes will be on its listing performance and how it navigates the challenges of public market expectations while continuing its mission of providing affordable education.
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