PhysicsWallah Plans ₹3,820 Crore IPO: Edtech Company's Potential Market Debut

PhysicsWallah, the popular edtech platform, is planning an Initial Public Offering (IPO) worth ₹3,820 crore. This move could potentially be a significant milestone for the company and might impact the landscape of the Indian edtech sector.

Proposed IPO Structure

The planned IPO comprises:

Component	Amount (in ₹ crore)
Fresh Equity	3,100.00
Offer for Sale	720.00
Total IPO Size	3,820.00

The offer for sale portion is expected to be contributed by the company's founders, Alakh Pandey and Prateek Boob. PhysicsWallah is reportedly targeting a valuation of nearly $5 billion.

Current Ownership Structure

The current ownership structure of PhysicsWallah is as follows:

Stakeholder	Ownership Percentage
Alakh Pandey	40.35
Prateek Boob	40.35
WestBridge Capital	6.41
Hornbill Capital Partners	4.42

Planned Utilization of IPO Proceeds

PhysicsWallah has outlined specific plans for the funds raised through the IPO:

Purpose	Allocation (in ₹ crore)
Marketing Initiatives	710.00
Lease Payments for Centers	548.00
Capital Expenditure for New Centers	460.00
Subsidiary Investment	471.00

Company Performance

PhysicsWallah has reported the following figures:

Current paid users: 44.6 lakh
FY24 Revenue: ₹1,940.00 crore
FY24 Loss: ₹1,130.00 crore

IPO Advisors

The share sale is being advised by a consortium of financial institutions:

Kotak Mahindra Capital
Axis Bank
JPMorgan Chase
Goldman Sachs

This planned IPO represents a significant event in the Indian edtech and startup ecosystem. Investors and market watchers will likely be observing how PhysicsWallah's potential public market debut unfolds, especially given its current loss-making status and valuation target. The outcome of this IPO could potentially influence other Indian edtech companies' decisions regarding public listings in the future.

In a remarkable turn of events, Alakh Pandey, the founder of edtech unicorn PhysicsWallah, has seen his personal wealth skyrocket, overtaking Bollywood superstar Shah Rukh Khan. This shift in fortunes highlights the growing influence of India's booming edtech sector and the potential for tech entrepreneurs to amass significant wealth rapidly.

Wealth Comparison

Individual	Net Worth (in Crores)	Increase
Alakh Pandey	14,510	223%
Shah Rukh Khan	12,490	71%

Alakh Pandey's net worth has surged by an impressive 223%, reaching Rs 14,510 crore. This substantial increase has propelled him past Shah Rukh Khan, whose wealth stands at Rs 12,490 crore after a 71% rise. Notably, Khan's growth has marked his entry into the billionaire club.

PhysicsWallah's IPO Plans

PhysicsWallah is gearing up for a significant milestone with its upcoming Initial Public Offering (IPO). The company has filed documents for a Rs 3,820 crore IPO, which includes:

Fresh issue of shares: Rs 3,100 crore
Offer for sale by co-founders: Rs 720 crore

Financial Performance

PhysicsWallah's financial results show promising improvements:

Metric	FY25	Previous FY	Change
Revenue	2,886	1,940	48.8%
Net Loss	243	1,131	-78.5%

The company has significantly reduced its net losses while achieving substantial revenue growth, indicating a strong trajectory towards profitability.

Shah Rukh Khan's Wealth Drivers

Shah Rukh Khan's wealth increase can be attributed to:

Red Chillies Entertainment: Reported a net profit of Rs 85 crore in FY23
Film Success: His movie 'Jawan' grossed Rs 640.25 crore domestically and Rs 1,160 crore worldwide

This news underscores the dynamic nature of wealth creation in India, with tech entrepreneurs like Alakh Pandey rapidly ascending the wealth rankings alongside established entertainment figures. As PhysicsWallah prepares for its IPO, it will be interesting to observe how this move impacts the company's growth and Pandey's personal wealth in the coming years.