The initial share sale of edtech unicorn PhysicsWallah received a muted response from investors, garnering just 6 per cent subscription on the first day of bidding on Tuesday.
The company's IPO received bids for 1,05,58,316 shares against 18,62,04,143 shares on offer, according to details available with the NSE till 14:20 hours.
The retail individual investors category was subscribed 27% while the portion for non institutional investors received a 2% subscription. The qualified institutional buyers (QIBs) category did not see any participation so far.
On Monday, PhysicsWallah said it has raised ₹1,563 crore from anchor investors.
This will be the first major pure-play edtech company to float its IPO in the country.
PhysicsWallah's ₹3,480-crore maiden public offering will conclude on November 13. The company fixed a price band of ₹103 to ₹109 per share for its IPO, aiming for a valuation of over ₹31,500 crore at the upper end.
The IPO comprises a fresh issue of equity shares worth ₹3,100 crore and an Offer For Sale (OFS) of shares aggregating up to ₹380 crore by promoters.
Both promoters, Alakh Pandey and Prateek Boob, will each offload shares worth ₹190 crore through the OFS. At present, both hold 40.31% stake each in the company.
The Noida-based PhysicsWallah filed draft papers in March with Sebi for an IPO through a confidential pre-filing route and had received the market regulator's approval in July. Following this, the company filed an updated DRHP in September before filing an RHP.
The company opted for the confidential pre-filing route, which allowed it to withhold public disclosure of IPO details until later stages.
Funds will be used to fuel the company's expansion and growth initiatives.
Of the fresh issue proceeds, PhysicsWallah said ₹460.5 crore will go towards fit-outs of new offline and hybrid centres, and ₹548.3 crore will be used for lease payments of existing centres.
Also, the company will invest ₹47.2 crore in its subsidiary Xylem Learning, including ₹31.6 crore for new centres and ₹15.5 crore for lease payments and hostels.
A further ₹33.7 crore will be directed to Utkarsh Classes & Edutech for lease payments of its centres.
Additionally, ₹200.1 crore is earmarked for server and cloud infrastructure, ₹710 crore for marketing initiatives, and ₹26.5 crore for acquiring additional stake in Utkarsh Classes.
PhysicsWallah offers test preparation courses for competitive exams focusing on JEE, NEET, GATE and UPSC, along with upskilling programs, delivered through online platforms (YouTube, website, and apps), tech-enabled offline centres, and hybrid centres that combine online teaching with in-person support.
Its main YouTube channel, "Physics Wallah-Alakh Pandey," had about 13.7 million subscribers as of July 15, 2025, while its overall YouTube network had 98.8 million subscribers by June 30, 2025, growing at a CAGR of 41.8 % between FY23 and FY25. Apart from its strong digital presence, PhysicsWallah has also built a significant offline footprint.
The company, which is backed by WestBridge Capital, Hornbill, and GSV Ventures, narrowed its losses to ₹243 crore in the year ended March 2025 from ₹1,131 crore in the preceding year. However, revenue rose to ₹2,887 crore, up from ₹1,941 crore in the same period.
According to the company, 75% of the issue size has been reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 10% for retail investors.
PhysicsWallah will make its stock market debut on November 18.
