PhysicsWallah Makes Strong Debut, Listing 43% Above Issue Price

PhysicsWallah Ltd made a strong stock market debut on Tuesday with shares were trading at ₹156.16, up 7.70% on the day and ₹47.38 (43.47%) above the issue price on NSE. On the BSE, the stock was quoted at ₹158, rising 44.95% higher than its IPO price.

In the pre-opening session, the shares were trading 33% higher at ₹145 on NSE.

The company, founded by Alakh Pandey, saw a late surge in grey-market sentiment ahead of its market debut. The edtech firm was commanding a grey-market premium (GMP) of ₹9.5 as of Monday, indicating an estimated 8.7% upside over the issue price of ₹109.

This rise comes despite a largely subdued subscription phase and a flat GMP through most of last week.

The ₹3,480 crore IPO, one of the largest from India’s edtech sector, was subscribed 1.92 times overall, driven mainly by institutional investors. The offering included a ₹3,100 crore fresh issue and a ₹380 crore offer for sale (OFS), with shares priced between ₹103 and ₹109.

Founded by Alakh Pandey and Prateek Boob, PhysicsWallah has built a substantial hybrid learning network, growing from a YouTube channel into a platform with 13.7 million subscribers, 4.46 million paid users, and more than 300 physical centres as of June 2025. In FY25, it reported 51% revenue growth to ₹3,039 crore and a net profit of ₹243 crore, reversing a significant loss in FY24.

PhysicsWallah plans to use the net proceeds from the fresh issue to accelerate expansion and strengthen operations. A major portion will go towards capital expenditure, including fit-outs for new offline and hybrid centres and lease payments for identified locations. The company also intends to upgrade its server and cloud infrastructure to support its expanding digital ecosystem and enhance platform reliability.

Part of the proceeds will be allocated to marketing initiatives to boost brand visibility and attract more students nationwide. Funds will also be channelled into subsidiaries Xylem Learning and Utkarsh Classes to support capital expenditure for new offline centres, hostels and related infrastructure.

Additionally, the company plans to pursue selective acquisitions that align with its long-term strategy and deepen its presence in India’s education market.

Brokerages remain divided on the IPO. InCred Equities recommends subscribing, citing strong growth and market presence, while SBI Securities maintains a neutral view. Swastika Investmart advises avoiding the issue.