PhysicsWallah, the popular ed-tech company, is set to make its stock market debut on November 18, 2023, with its Initial Public Offering (IPO) listing on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The company's Rs 3,480 crore IPO has garnered significant attention from investors, with the issue being oversubscribed 1.81 times.

IPO Details and Subscription Status

Grey Market Premium and Expected Listing Gains

The grey market, often considered an indicator of potential listing performance, shows a positive trend for PhysicsWallah shares:

The grey market premium of Rs 8 suggests that PhysicsWallah's unlisted shares are trading at Rs 117 in the unofficial market. This indicates a potential listing gain of 7.34% for investors who have been allotted shares in the IPO.

Investor Outlook

The oversubscription of the IPO by 1.81 times reflects strong investor interest in PhysicsWallah. This enthusiasm could be attributed to the company's prominent position in the rapidly growing ed-tech sector in India.

As the listing date approaches, investors and market watchers will be keenly observing how PhysicsWallah performs on its debut. The expected listing gain of 7.34%, as indicated by the grey market premium, suggests a positive sentiment among investors.

It's important to note that grey market premiums and expected listing gains are speculative and not guaranteed. Actual listing performance can be influenced by various factors, including overall market conditions on the listing day.

Investors who have been allotted shares in the IPO should keep an eye on the listing on November 18 to see how the stock performs in its early trading sessions on the BSE and NSE.

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%.

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:

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.