EdTech startup PhysicsWallah has successfully raised Rs 1,560 crore from anchor investors, marking a significant milestone as it prepares to launch its Initial Public Offering (IPO). This development underscores the strong investor interest in the company's growth potential and its upcoming public debut.

Anchor Book Details

PhysicsWallah allocated 14.33 crore shares to 57 entities at Rs 109 per share, which is at the upper end of the IPO price band. The anchor book saw substantial participation from various institutional investors:

IPO Highlights

The mainboard IPO is set to open on November 11, with the following key details:

Use of Proceeds

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

Ownership Structure

The company's co-founders, Alakh Pandey and Prateek Maheshwari, currently hold over 80% stake in PhysicsWallah. They will be participating in the offer-for-sale component of the IPO.

This IPO marks a significant step for PhysicsWallah in its journey as an EdTech company. The strong response from anchor investors, particularly mutual funds, suggests confidence in the company's business model and growth prospects. As the IPO opens to the public, it will be interesting to see how retail investors respond to this offering in the dynamic EdTech sector.

The recent lukewarm market debut of Lenskart has sent ripples through the initial public offering (IPO) landscape, particularly affecting new-age companies preparing to go public. The eyewear retailer's shares listed at a 3% discount to their IPO price of ₹402, triggering a domino effect on the grey market premiums (GMPs) of upcoming IPOs.

Impact on Upcoming IPOs

The cautious market sentiment has led to significant drops in the GMPs of several high-profile tech startups:

This sharp decline in GMPs reflects a growing wariness among investors towards new-age tech companies, especially those yet to demonstrate consistent profitability.

Groww's IPO Performance

Despite the overall market caution, Groww's ₹6,632.00 crore IPO closed with an impressive 17.6x subscription. The fintech company is scheduled to list on November 12. Groww's financial performance has been a bright spot, with the company reporting:

• Net profit: ₹1,824.00 crore
• Revenue: ₹4,061.00 crore

These figures suggest a strong financial foundation, which may help explain the high subscription rate despite the challenging market conditions.

PhysicsWallah's Upcoming IPO

PhysicsWallah is set to open its ₹3,480.00 crore IPO on November 11. However, the edtech company faces headwinds due to its recent financial performance:

• Net loss: ₹243.00 crore

This loss may contribute to investor hesitancy, especially in light of the current market sentiment.

Pine Labs' Ongoing IPO

Pine Labs' ₹3,890.00 crore IPO has encountered a tepid response, with only 38% subscription through Day 2. The company's financial snapshot reveals:

• Revenue: ₹2,274.00 crore
• Net loss: ₹145.00 crore

The combination of underwhelming subscription rates and reported losses aligns with the overall cautious approach investors are taking towards tech startups.

Market Sentiment Shift

The lackluster debut of Lenskart and the subsequent decline in GMPs for upcoming IPOs signal a significant shift in market sentiment. Investors appear to be reassessing their risk appetite for tech startups, particularly those that are yet to demonstrate consistent profitability.

This cautious approach is likely influenced by several factors:

• The global economic uncertainty
• Recent performances of listed new-age companies
• A growing emphasis on fundamentals and profitability over growth-at-all-costs strategies

As the IPO market evolves, companies preparing to go public may need to reassess their valuations and strengthen their financial narratives to attract investor interest in this more discerning environment.