The much-anticipated initial public offering (IPO) of PhysicsWallah Ltd, India’s leading edtech platform, witnessed a modest subscription of around 10% on the second day of bidding. Despite strong brand recognition and a wide student base, the tepid response suggests investors are exercising caution toward the broader edtech sector, which continues to grapple with profitability and post-pandemic stabilization. The Rs. 3,480 crore issue—comprising both a fresh issue and an offer for sale—aims to fund the company’s offline expansion, content development, and technology investments. Analysts say institutional demand will be crucial to determine the listing performance.
IPO Structure and Objectives
PhysicsWallah’s IPO is a mix of a fresh issue worth Rs. 3,100 crore and an offer for sale (OFS) of Rs. 380 crore, taking the total size to Rs. 3,480 crore. The price band is fixed between Rs. 103 and Rs. 109 per share, valuing the company at nearly Rs. 26,000 crore. The proceeds from the fresh issue will primarily be used for expanding its hybrid learning centres, improving its technology stack, and enhancing marketing and content capabilities.
The company, founded by Alakh Pandey and Prateek Maheshwari, has evolved from a YouTube-based learning platform into a full-fledged edtech ecosystem, offering courses across engineering, medical, and school-level education.
Subscription Status and Investor Sentiment
By the afternoon of Day 2, the IPO had been subscribed around 0.10 times (10%) of the total shares on offer. The retail investor portion was subscribed approximately 0.56 times, while Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) showed limited participation, with QIBs’ portion yet to see significant traction.
This comes after a lukewarm Day 1, when total bids were just 0.07 times of the shares available. Market experts note that while PhysicsWallah’s strong brand recall and large student user base provide a compelling story, valuation concerns and the edtech sector’s uncertain growth trajectory are likely weighing on investor sentiment.
Financial Performance and Growth Strategy
PhysicsWallah has demonstrated impressive top-line growth in recent years. The company’s revenue rose to Rs. 2,887 crore in FY25, up from Rs. 1,941 crore in the previous fiscal. Net losses narrowed sharply to Rs. 243 crore, compared with Rs. 1,131 crore a year earlier—indicating an improving cost structure and growing operational efficiency.
The company operates more than 75 hybrid learning centres across India and plans to increase this footprint significantly over the next two years. It also aims to deepen penetration into Tier-II and Tier-III cities, catering to students who prefer affordable, blended learning formats.
However, experts point out that the company’s heavy investments in offline infrastructure could pressure margins in the near term. Furthermore, competition from established edtech players and traditional coaching institutes remains intense, creating challenges for sustained profitability.
Edtech Sector Outlook and Investor Concerns
The broader edtech landscape in India has entered a consolidation phase following the pandemic boom. Investors are now focusing on companies that demonstrate financial prudence, scalability, and clear paths to profitability. Recent market volatility and regulatory tightening in the education space have also tempered enthusiasm for new-age tech IPOs.
Analysts say PhysicsWallah’s listing performance will likely depend on the participation of institutional investors in the final bidding hours. The anchor book, which raised Rs. 1,563 crore, included reputed global investors like Goldman Sachs and Fidelity, signaling institutional confidence in the long-term potential of the company—though secondary market demand will determine post-listing performance.
Conclusion
PhysicsWallah’s IPO represents a defining moment for India’s edtech industry, testing investor appetite for companies navigating between digital learning and offline expansion. While the subscription figures so far reflect cautious optimism, the coming days will reveal whether the company can convert its massive student following into market confidence.
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