PhysicsWallah Ltd’s IPO targeting ₹3,480 crore will open today to the public at a price band of ₹103-109. The company is backed by private equity investors such as WestBridge Capital, Hornbill Capital Partners, and GSV Ventures. The lot size is 137 shares.
The issue comprises a fresh issue of 28.44 crore shares for ₹3,100 crore and an offer for sale (OFS) of 3.49 crore shares for ₹380 crore by Alakh Pandey and Prateek Boob, promoters selling shareholders in the OFS. The promoters’ holding will reduce from 80.62 per cent to 72 per cent post-IPO. Notably, none of the early investors will sell their stakes in this offering. The issue will close on November 13
Up to 75 per cent of the net issue is reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors, and the remaining 10 per cent for retail investors.
Anchor investors
As part of the IPO, PhysicsWallah, the online education platform, on Monday raised ₹1,562.8 crore from 57 institutional investors via an anchor book.
Marquee investors who invested through the anchor book included global funds such as Goldman Sachs, Smallcap World Fund, Franklin Templeton, FundPartner Solutions, Fidelity Funds, TIMF Holdings, Pinebridge Global Funds and Eastspring Investments; domestic institutional investors including ICICI Prudential MF, Kotak Mahindra AMC, Nippon Life India, 360 ONE, Aditya Birla Sun Life AMC, Motilal Oswal AMC, Tata MF, Invesco India, Edelweiss, Canara Robeco MF, PGIM India, IIFL Asset Management, Axis Max Life Insurance and Bharti Axa Life Insurance.
Objective of fundraising
The IPO proceeds will be used to fund expansion and growth initiatives such as fit-outs of new offline and hybrid centres; lease payments of existing identified offline and hybrid centres; investment in its subsidiary, Utkarsh Classes and Edutech Private Ltd; expenditure towards server and cloud-related infrastructure costs; expenditure towards marketing initiatives; acquisition of additional shareholding in its subsidiary, Utkarsh Classes; and funding inorganic growth through unidentified acquisitions and general corporate purposes.
Kotak Mahindra Capital Company Ltd, J.P. Morgan India Private Limited, Goldman Sachs (India) Securities Private Limited, and Axis Capital Limited are the book-running lead managers of the issue. MUFG Intime India Private Limited (formerly Link Intime India Private Limited) is the registrar of PhysicsWallah IPO.
Think investments fund infusion
Global investment firm Think Investments has invested a little over Rs 136 crore in edtech unicorn PhysicsWallah as part of a pre-IPO funding round just ahead of the IPO last week. As part of the transaction, Think Investments picked up 1.07 crore equity shares, amounting to 0.37 per cent stake in PhysicsWallah from 14 employees of the edtech firm.
Brokers views
SBI Securities
PhysicsWallah (PW) offers test-preparation courses for competitive examinations and other upskilling courses. The company’s channels of delivery include (a) online, (b) tech-enabled offline centres or (c) Hybrid centres. It is among the top 5 edtech companies in terms of revenue in India and has 13.7 million subscribers as of Jul ’25 on its main YouTube channel. Over the last three years, PW has delivered Sales/EBITDA CAGR of 96.9%/88.8% respectively, while the company’s net loss has widened from Rs 81 cr in FY23 to Rs 216 cr in FY25 due to higher depreciation expenses and impairment losses on financial assets. At the upper price band of Rs 109, the issue is valued at an EV/Sales multiple of 9.7x based on the post-issue capital, which seems fairly valued. We maintain a Neutral view on the issue and would like to monitor the company’s performance post-listing.
Angel One
Physics Wallah Ltd’s financials cannot be compared on a P/E basis as it remains loss-making, with no listed like-to-like peers in the Indian EdTech space. While the company continues to deliver strong revenue growth and enjoys high brand recall, profitability remains constrained by rising competition and elevated scaling costs. Hence, we assign a “Neutral” rating and recommend that investors wait for clearer earnings visibility before taking a long-term position.
Key risks include continued losses and uncertain profitability, heavy dependence on student enrolments and key faculty, and execution challenges from rapid offline expansion. Rising competition and high operating costs further add to profitability and scalability risks.
Anand Rathi
At the upper end of the price band, the company is valued at 10.8x FY25 P/S, implying a post-issue market capitalisation of ₹3,11,699 million. They aim to grow their student community by offering engaging free content across platforms and converting users into paying customers through better technology, targeted marketing, and expert-led high-quality content. The company plans to broaden its course portfolio and launch new Education Categories in multiple Indian languages to reach a wider student audience. They intend to keep innovating to introduce value-added services that enable upselling of additional offerings at minimal incremental cost. They plan to expand into new regions and enhance their offerings and tech tools by acquiring strong, student-focused businesses. Considering these factors, the IPO appears fully priced and is rated “Subscribe – Long Term.
SMIFS Ltd
We recommend subscribing to the issue as a good long term opportunity, backed by PW’s deep regional presence, accelerating paid user growth, rapid offline scale-up, strong digital and content ecosystem, and strategic diversification across segments and geographies, positioning it with the potential to become India’s largest education company within the next 4-5 years and a dominant force in the evolving EdTech landscape.
InCred Equities
The company has demonstrated significant growth over the years in both online and offline business verticals. At the upper end of the price band, the initial public offer (IPO) is valued at an EV/sales multiple of 10.7x based on post-issue capital. The valuation of PW seems stretched, but given its strong moat and topline/business expansion, the company is well-placed to disrupt the edtech space. As the business scales up, we expect profitability over the medium- to long-term. Downside risks: Brand reputation among the student community is sensitive, dependence on the promoter’s face value, and a high faculty/talent attrition rate.
Kunvarji Wealth
We recommend subscribing to this IPO for risk-seeking investors who may consider allocating moderate funds with a medium-term investment horizon. While the issue seems to be aggressively priced, the company is a leading player in the edtech industry and ranks among the top five education companies in India by revenue. In fiscal 2025, it recorded a total of 4.46 million paid users,
Published on November 11, 2025
