PhysicsWallah IPO Shatters Expectations: Anchor Investors Pour ₹1,562 Cr! Huge Debut Ahead?

PhysicsWallah, founded by Alakh Pandey and Prateek Boob, has successfully garnered Rs 1,562.8 crore from 57 institutional investors through its anchor book on November 10, ahead of its public IPO opening. The Initial Public Offering (IPO) aims to raise Rs 3,100 crore by issuing new shares, complemented by an additional Rs 380 crore through an offer-for-sale. The IPO's price band is fixed between Rs 103 and Rs 109 per share, with subscription available until November 13. A significant portion of the anchor book, 55.5 percent, was subscribed by 14 domestic mutual funds across 35 schemes. The company plans to utilize the Rs 460.5 crore from the fresh issue for fitting out new offline and hybrid centers, Rs 548.3 crore for lease payments of existing centers, and Rs 47.2 crore for investment in its subsidiary, Xylem Learning. Further funds are allocated for server and cloud infrastructure (Rs 200.1 crore), marketing initiatives (Rs 710 crore), and inorganic growth via acquisitions. IPO share allotment is scheduled for November 14, with trading commencing on BSE and NSE on November 18.

Impact This IPO demonstrates strong investor appetite for established EdTech players in India, potentially boosting confidence in other companies within the sector. It also signals healthy primary market activity. Rating: 7/10.

Difficult Terms: IPO (Initial Public Offering): The process by which a private company offers its shares to the public for the first time, allowing it to raise capital and become a publicly traded entity. Anchor Book: A pre-IPO allocation of shares to a select group of institutional investors, typically made a day before the public subscription opens. This aims to build investor confidence. Offer-for-Sale (OFS): A route through which existing shareholders (promoters or large investors) can sell their shares to the public, allowing them to partially exit their investment. Price Band: A range within which the shares of a company will be offered during an IPO. The final price is determined within this band based on demand. Fresh Issue: The issuance of new shares by a company to raise capital. The proceeds go directly to the company. Subsidiary: A company controlled by another company, known as the parent company. BSE and NSE: Bombay Stock Exchange and National Stock Exchange, the two main stock exchanges in India.