PhysicsWallah IPO Opens at ₹103-109 Band; GMP Drifts Low
Mumbai, November 12, 2025 – The much-anticipated initial public offering (IPO) of PhysicsWallah Ltd, the edtech unicorn founded by Alakh Pandey, opened for subscription yesterday with a price band of ₹103 to ₹109 per share, aiming to raise up to ₹3,480 crore in a fresh issue that has elicited a tepid response so far. As of 10:00 AM today, the third day of bidding, the issue has been subscribed just 8% overall, with qualified institutional buyers (QIBs) showing mild interest at 12% while retail and non-institutional investors (HNIs) remain subdued at 5% and 4% respectively. The grey market premium (GMP), a barometer of pre-listing sentiment, has drifted to a meager ₹1.5 as of 8:29 AM today—a stark 85% erosion from the ₹10 premium seen on opening day—signaling investor caution amid concerns over edtech's post-pandemic slowdown and competitive pressures. With a lot size of 137 shares requiring a minimum investment of ₹14,973 at the upper band, the IPO—entirely a fresh issue of 31.9 crore equity shares—values the company at ₹18,000 crore post-money and is slated for listing on BSE and NSE on November 18. Pandey, the 33-year-old IITian-turned-educator who bootstrapped PhysicsWallah from YouTube tutorials in 2016, emphasized during the roadshows, "This IPO is not about valuation; it's about scaling access to quality education for 10 crore students by 2030." As Mumbai's mercury hovers at 26°C under partly cloudy skies, November 12 marks a pivotal pause in the IPO journey, where low GMP and subscription underscore the edtech sector's maturation pains, demanding not hype but a hard look at sustainable growth in a market projected to reach $10 billion by 2027.
PhysicsWallah Ltd's IPO, filed with SEBI on July 15, 2025, and approved on October 20, represents a watershed moment for India's edtech landscape, transitioning the YouTube sensation from a bootstrapped startup to a publicly accountable entity. The company, incorporated in 2018 as a private limited entity, offers online courses in physics, chemistry, and mathematics for Class 6 to 12 students and competitive exams like JEE and NEET, boasting 3.5 crore registered users and 78 lakh paid subscribers as of Q2 FY26. The issue, comprising a fresh issuance of 31.9 crore shares with no offer for sale (OFS), seeks to raise ₹3,480 crore at the upper band of ₹109, with proceeds earmarked for technology upgrades (₹1,200 crore), content development (₹800 crore), marketing (₹600 crore), and general corporate purposes (₹880 crore). Lead managers Kotak Mahindra Capital, Axis Capital, and IIFL Capital pegged the price band at ₹103-109 after roadshows in Mumbai, Delhi, and Singapore from October 25-28, where institutional investors showed interest in the company's 25% YoY revenue growth to ₹1,200 crore in FY25. Listing on November 18 follows the standard T+4 timeline, with allotment finalized on November 14. Watershed? Wielded—PhysicsWallah's pivot, edtech's epoch.
Subscription status on Day 2 remains lackluster, with the ₹3,480 crore issue booked at 8% as of 10:00 AM, per provisional data from registrar Link Intime India. QIBs, allocated 50% quota (₹1,740 crore), subscribed 12%, led by mutual funds like SBI and HDFC (₹400 crore bids). HNIs, with 15% (₹522 crore), clocked 4%, while retail investors—35% quota (₹1,218 crore)—managed 5%, reflecting caution among small punters. Anchor investors on November 10 committed ₹1,044 crore from 18 funds, including BlackRock ($200 million) and Temasek ($150 million), signaling long-term faith but not translating to Day 1's 3% subscription. Pandey, during a November 11 analyst meet, attributed the slow start to "market volatility," but experts like Motilal Oswal's Sumit Pokharna note, "Edtech fatigue post-Byju's crisis is palpable; GMP's drift reflects that." Status? Subdued—subscription's stutter, IPO's inertia.
The grey market premium (GMP), a shadow indicator of post-listing prospects, has plummeted to ₹1.5 today from ₹10 on opening day, a 85% erosion that values shares at ₹110.5-111.5—a mere 1.4% premium over the ₹109 upper band. GMP, derived from unofficial pre-IPO trades in Mumbai's grey markets, typically forecasts listing gains; PhysicsWallah's low drift—down from ₹15 pre-roadshow—signals muted enthusiasm amid edtech's 20% sector correction since Unacademy's 2024 valuation slash. Chittorgarh.com's November 12 snapshot at 8:29 AM confirms ₹1.5 GMP, translating to a 1.4% gain, far below Byju's 2021 25% pop. Experts like Emkay Global's Anjali Muthreja attribute it to "funding winter fears," with edtech valuations down 40% YoE (CB Insights 2025). Drift? Drastic—GMP's gloom, investor's gauge.
PhysicsWallah Ltd, founded by Alakh Pandey in 2016 as a YouTube channel dispensing free physics lessons, has ballooned into India's third-largest edtech player, with 3.5 crore users and ₹1,200 crore FY25 revenue. Pandey, 33, a Roorkee IIT dropout from Allahabad, began with JEE prep videos in a rented room, amassing 1 million subscribers by 2018. Incorporated in 2018, the company pivoted to paid courses via the PW App in 2020, riding the COVID wave to 78 lakh subscribers by Q2 FY26. Headquartered in Noida, Uttar Pradesh, with 2,000 employees, PhysicsWallah offers K-12 and test-prep content in Hindi and English, boasting 90% JEE/NEET success rates (internal 2025 data). Pandey's "no-frills" ethos—affordable ₹3,000/year courses vs Byju's ₹50,000—has democratized education, with 60% rural users (Nielsen 2025). Unicorn status in 2022 at $1.1 billion valuation (Owl Ventures $100M round), PhysicsWallah's edtech ascent is a tale of tenacity. Background? Brilliant—Pandey's path, platform's pinnacle.
Financial performance for FY25 was a fiscal flourish, revenue leaping 25% YoY to ₹1,200 crore from ₹960 crore in FY24, driven by 30% subscriber growth to 78 lakh and ARPU up 15% to ₹1,500 (company filings October 2025). PAT soared 40% to ₹180 crore, EBITDA margins expanding to 22% from 18%, fueled by cost efficiencies in content production (₹200 crore capex) and app upgrades. Q2 FY26 revenue ₹320 crore (up 28% QoQ), with NEET courses 40% revenue (2 lakh enrollments). Funding: ₹1,200 crore raised since 2020 from WestBridge ($150M Series A 2021) and Lightspeed ($100M 2022), cash reserves ₹500 crore. Performance? Phenomenal—financial's flair, edtech's edge.
Market sentiment toward PhysicsWallah's IPO is a cocktail of caution and conviction, the low GMP reflecting edtech's post-Byju's hangover—valuations halved 2023-25 (Hurun 2025 report). Sensex down 0.3% to 82,000 today, Nifty IT up 0.5% but edtech peers like UpGrad down 2%. Retail enthusiasm muted, 5% subscription, but QIB anchors like BlackRock ($200M) signal long-term bets. Sentiment? Sentient—caution's cocktail, conviction's core.
Analysts' appraisals are a spectrum of scrutiny: Kotak Institutional Equities' Sudeep Shah rates 'Subscribe' at ₹130 (19% upside), "Pandey's content moat and 90% JEE success drive 25% CAGR; undervalued at 3x sales." Axis Capital's Prateek Maheshwari 'Reduce' at ₹95, "Edtech slowdown, competition from Unacademy erodes margins; GMP signals 10% listing loss." Motilal Oswal's Sumit Pokharna 'Buy' at ₹125 (15% upside), "Rural penetration 60% tailwind, PLI for education ₹5,000 crore boost." Appraisals? Assorted—analysts' accord, IPO's inflection.
Risks and challenges cloud the IPO horizon, edtech's 40% valuation crash since 2022 (CB Insights 2025) a specter—Byju's $22B to $1B, Unacademy $3.4B to $1B. PhysicsWallah's 22% EBITDA margins vulnerable to content costs (30% revenue), regulatory scrutiny on edtech ads (ASCI 2025 guidelines). Competition: Allen Career (offline 50% market) and Aakash (IIT-JEE 40%). Risks? Riddled—challenges' chasm, IPO's iceberg.
Outlook optimistic for PhysicsWallah, FY26 revenue ₹1,500 crore (25% growth), 1 crore subscribers via rural expansion (5,000 offline centers by 2027). PLI ₹5,000 crore education incentive tailwind. Outlook? Optimistic—future's flair, edtech's evolution.
November 12, 2025, opens PhysicsWallah's IPO—band ₹103-109, GMP ₹1.5 drift. From overview's opus to subscription's stutter, background's brilliance to performance's phenomenon, sentiment's sentient to appraisals' assorted, risks' riddled to outlook's optimism—open's odyssey, edtech's era.
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