Shares of PhysicsWallah, one of India’s most popular edtech brands, will make their stock market debut today, drawing attention from both retail investors and market analysts.
Despite the company’s strong brand presence and loyal student base, its IPO received a modest subscription,
Founded by Alakh Pandey, PhysicsWallah has become a household name among students preparing for competitive exams such as JEE and NEET.
What began as a YouTube channel has grown into a major edtech platform, combining free online content with affordable offline classes. This hybrid model has helped the company stand out in a sector where many rivals have struggled to stay profitable.
The grey market premium (GMP) for PhysicsWallah shares has shown some recovery ahead of the listing. After remaining flat for several days, it has moved up in recent sessions, indicating a slightly improved sentiment.
As of November 18 (6:57 AM), the last recorded GMP stood at Rs 14, suggesting an estimated listing price of Rs 123 per share compared to the upper issue price of Rs 109. This implies a potential listing gain of around 12.84% if the momentum continues through the debut.
However, analysts caution that the grey market is an informal indicator and may not always accurately reflect the actual listing performance.
in total, with the retail category subscribed 1.14 times, the qualified institutional buyers (QIB) portion 2.86 times, and the non-institutional investors (NII) segment 0.51 times as of November 13.
While the subscription levels were not high, analysts said the participation from institutional investors shows faith in the company’s long-term potential.
The IPO price band was fixed at Rs 103–Rs 109 per share, with a lot size of 137 shares, requiring a minimum investment of Rs 14,933 at the upper price. For small non-institutional investors (sNII), the minimum investment was Rs 2,09,062, while for large NIIs (bNII), it stood at Rs 10,00,511.
The issue also included a reservation of 7,52,688 shares for employees, offered at a discount of Rs 10 per share. Kotak Mahindra Capital Co. Ltd. served as the book-running lead manager, and MUFG Intime India Pvt. Ltd. acted as the registrar.
The IPO opened for subscription on November 11 and closed on November 13.
Brokerages have shared mixed views on the IPO, with some recommending it for long-term investors and others advising caution.
According to InCred Equities, PhysicsWallah’s business model remains strong, supported by its large digital audience and a freemium strategy that converts free users into paying customers. “The company has demonstrated significant growth in both online and offline verticals. At the upper end of the price band, the IPO is valued at an EV/Sales multiple of 10.7x. Though the valuation looks stretched, PhysicsWallah is well-placed to disrupt the edtech space,” the brokerage said.
InCred has given the IPO a ‘Subscribe’ rating, mainly for medium to long-term investors, while warning of risks linked to the company’s heavy reliance on Alakh Pandey’s brand image and the challenges of expanding offline operations.
On the other hand, SBI Securities has taken a ‘Neutral’ view, calling the valuation fair but pointing out profitability pressures. “At the upper price band of Rs 109, the issue is valued at an EV/Sales multiple of 9.7x based on post-issue capital, which seems fairly valued. While the company has achieved high revenue growth, profitability remains under pressure,” the brokerage said, advising investors to wait and watch post-listing performance.
Meanwhile, Anand Rathi has offered a ‘Subscribe – Long Term’ rating, citing the company’s hybrid model as a key strength. “At the upper price band, the company is valued at 10.8x FY25 price-to-sales. The IPO appears fully priced but offers long-term opportunities as PhysicsWallah expands into new education categories and regional markets,” it said.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)