PhysicsWallah IPO Surges Past Target: QIBs Drive Massive Demand on Final Day!

IPO

|

Updated on 13 Nov 2025, 10:09 am

The edtech firm PhysicsWallah's Initial Public Offering (IPO) successfully concluded its three-day subscription period on November 13, 2025, largely due to robust demand from Qualified Institutional Buyers (QIBs). The issue garnered bids for 258.4 million equity shares against 186.2 million offered, achieving an overall subscription rate of 1.39 times as of 3:00 PM on Thursday. On the final day, the QIB portion saw a booking of 2.05 times, followed by retail investors at 92% subscription and Non-institutional Investors (NIIs) at 36%. The IPO is structured as a book build issue worth ₹3,480 crore, comprising a fresh issue of equity shares aggregating ₹3,100 crore and an Offer For Sale (OFS) of shares worth ₹380 crore. The price band for the IPO was set between ₹103 and ₹109 per share, with a lot size of 137 shares. Funds raised will be used for setting up new centers, lease payments, investments in subsidiaries like Xylem Learning and Utkarsh Classes Edutech, enhancing server infrastructure, marketing, and general corporate purposes. The basis of allotment is expected on November 14, 2025, with shares credited to demat accounts on November 17, 2025, and listing scheduled for November 18, 2025, on the BSE and NSE.

Impact: This successful IPO subscription indicates strong investor confidence in PhysicsWallah's business model and growth prospects within the edtech sector. It allows the company to raise significant capital for expansion, potentially leading to increased market share and future revenue growth, which could positively influence its stock performance post-listing. Rating: 7/10

Terms: * IPO (Initial Public Offering): The process by which a private company offers its shares to the public for the first time, becoming a publicly traded entity. * Qualified Institutional Buyers (QIBs): Large institutional investors like mutual funds, venture capital funds, insurance companies, and foreign institutional investors who are eligible to subscribe to shares in an IPO. * Non-institutional Investors (NIIs): Investors who are not Qualified Institutional Buyers and bid for shares above a certain limit (typically more than ₹2 lakh). This category includes high net-worth individuals, companies, and trusts. * Book Build Issue: A type of IPO where the company, with the help of its lead book runners, determines the price at which its shares will be offered based on demand from potential investors. * Fresh Issue: The portion of the IPO where the company issues new shares to raise capital. The proceeds go directly to the company. * Offer For Sale (OFS): The portion of the IPO where existing shareholders (like promoters or early investors) sell their shares. The proceeds from an OFS go to the selling shareholders, not the company. * Grey Market Premium (GMP): An unofficial indicator of demand for an IPO. It represents the premium at which IPO shares are trading in the grey market before their official listing. * Red Herring Prospectus (RHP): A preliminary prospectus filed with regulatory authorities that contains detailed information about the company, its business, financials, and the proposed IPO. * Demat Accounts: Accounts used to hold shares and other securities in electronic form.