PhysicsWallah, the popular edtech platform, has launched its Initial Public Offering (IPO) with a mixed response from investors. The Rs 3,480.00 crore IPO opened for subscription on November 9, 2023, marking a significant milestone for the company.

Subscription Details

On the first day of the IPO, PhysicsWallah witnessed a 5% subscription rate, with investors placing bids for 91 lakh shares against the 18.62 crore shares on offer. Here's a breakdown of the subscription status:

IPO Structure and Pricing

The PhysicsWallah IPO comprises a fresh issue of Rs 3,100.00 crore and an Offer for Sale (OFS) of Rs 380.00 crore. The company has set the issue price at Rs 109.00 per share. The IPO is currently trading at a grey market premium of Rs 3.00 per share, indicating a 2.75% premium over the issue price.

Company Performance

PhysicsWallah has shown impressive growth in its recent financial results:

This marks a significant turnaround from the previous year when the company reported a loss of Rs 1,131.00 crore.

Platform Reach

PhysicsWallah has established a strong presence in the edtech sector:

Analyst Opinions

The IPO has received mixed reactions from market analysts:

Key Dates

• Subscription Close: November 13, 2023
• Expected Listing Date: November 18, 2023

Investors and market watchers will be closely monitoring the subscription trends over the next few days as PhysicsWallah makes its debut in the public market. The company's strong revenue growth and recent profitability may be key factors influencing investor decisions.

PhysicsWallah, the popular edtech platform, is set to launch its Initial Public Offering (IPO), marking a significant milestone in the company's journey. The IPO, valued at Rs 3,480 crore, comes with a price band of Rs 103-109 per share, offering investors a chance to be part of the company's growth story.

IPO Details

Company Overview

PhysicsWallah has established itself as a prominent player in the edtech space, boasting impressive metrics:

• Over 300 hybrid and physical centers across India
• 18,000+ employees
• 13.7 million subscribers
• 4.46 million paid users

Financial Performance

The company has shown strong financial growth:

This marks a significant improvement from the previous loss of Rs 1,131.00 crore, indicating the company's progress towards profitability.

IPO Proceeds Utilization

PhysicsWallah plans to use the IPO proceeds for:

1. Expanding offline presence
2. Lease payments
3. Marketing initiatives

Operational Challenges

The company's prospectus discloses several incidents at its physical centers:

1. A ceiling fan fell on a student at a Delhi center, resulting in an FIR against an employee.
2. A staff member allegedly pushed a student.
3. A student reportedly threatened a faculty member.
4. An emergency evacuation occurred due to an unidentified odor at one of the centers.

These incidents highlight the importance of safety measures and risk management in PhysicsWallah's physical centers.

Investor Considerations

As PhysicsWallah prepares to go public, investors may consider the company's strong growth and market position alongside its operational challenges. The edtech sector's competitive landscape and the company's ability to maintain its growth trajectory while addressing these challenges could be crucial factors to consider.

The IPO presents an opportunity to invest in a rapidly growing edtech platform. As with any investment, thorough due diligence is advised. Potential investors should carefully review the prospectus, consider the company's financials, growth strategy, and risk factors before making an investment decision.