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HomeMarket NewsPhysicsWallah's ₹3,480-crore IPO opens today: Why most analysts are taking a 'Neutral' stance
According to market observers, PhysicsWallah shares were trading at a premium in the grey market ahead of the IPO, with a grey market premium (GMP) of ₹3 per share. However, grey market premiums are indicative and can change rapidly.
By Meghna Sen November 11, 2025, 4:52:39 AM IST (Published)
The ₹3,480-crore initial public offering (IPO) of edtech platform PhysicsWallah opens for subscription in the primary market today at 10 am. The company raised ₹1,562.85 crore from 57 anchor investors a day earlier.
Capital Group, Goldman Sachs, Fidelity, Abu Dhabi Investment Council, and PineBridge were among the marquee foreign investors.
PhysicsWallah IPO: What analysts say
SBI Securities
The brokrerage has ascribed a 'Neutral' view on the IPO, saying that it would like to monitor the company's performance post-listing. The brokerage said that over the last three years, PhysicsWallah has delivered a sales/EBITDA CAGR of 96.9% and 88.8%, respectively.
However, the company's net loss widened from ₹81 crore in FY23 to ₹216 crore in FY25 due to higher depreciation expenses and impairment losses on financial assets.
InCred Equities
InCred has recommended a 'Subscribe' rating for the IPO, citing the company's huge growth across both online and offline business verticals.
At the upper price band, the IPO is valued at an EV/sales multiple of 10.7x based on post-issue capital. While the valuation appears stretched, the brokerage said the company's strong moat and business expansion position it well to disrupt the edtech space. Profitability is expected to improve over the medium to long term as the business scales.
Angel One
According to the brokerage firm, PhysicsWallah's financials cannot be compared on a P/E basis as the company remains loss-making, with no listed peers in the Indian edtech space.
While the firm continues to record strong revenue growth and enjoys high brand recall, profitability is constrained by rising competition and elevated scaling costs.
Consequently, Angel One has assigned a 'Neutral' rating, recommending investors wait for clearer earnings visibility before taking a long-term position.
PhysicsWallah IPO: Risk factors
Faculty and Student Retention Risk: The company's success relies on retaining quality faculty and students. Breaches of non-compete clauses or poor student outcomes could hurt enrollments, reputation, and finances.
Dependence on Founders: Heavy reliance on founders Alakh Pandey and Prateek Boob poses a key personnel risk. Any exit could negatively impact strategy, brand, and operations.
Evolving Industry Dynamics: Frequent changes in exam patterns and curricula require constant updates to PhysicsWallah's courses and teaching methods to remain competitive.
Price band and investment details
The IPO price band has been fixed between ₹103 and ₹109 per share. Retail investors can bid for one lot of 137 shares, entailing a minimum investment of ₹14,933, with bids accepted in multiples of 137 shares thereafter. Eligible employees will receive a ₹10 per share discount.
At the upper end of the price band, PhysicsWallah's post-issue market capitalization is expected to be ₹31,169 crore.
Grey Market Premium (GMP) today
According to market observers, PhysicsWallah shares were trading at a premium in the grey market ahead of the IPO, with a grey market premium (GMP) of ₹3 per share. However, grey market premiums are indicative and can change rapidly.
IPO structure
The IPO comprises a fresh issue of ₹3,100 crore and an Offer For Sale (OFS) component of ₹380 crore. About 75% of the issue is reserved for Qualified Institutional Bidders (QIBs), while only 10% is allocated to retail investors.
Promoter holding will decline to 72.3% from 81.6% post-IPO.
Kotak Capital, JPMorgan India, Goldman Sachs (India), and Axis Capital are the Book Running Lead Managers for the issue. Key investors include WestBridge Capital, GSV Ventures, Hornbill Capital, and Lightspeed Venture Partners.
About PhysicsWallah
PhysicsWallah was founded by Alakh Pandey in 2016. A physics teacher and college dropout, Pandey began uploading free educational videos to YouTube. The channel gained widespread popularity during the Covid-19 pandemic.
Today, the company operates 303 offline centers across 152 cities in India and the Middle East.
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