PhysicsWallah Files Red Herring Prospectus for ₹3,480 Crore IPO

Edtech major PhysicsWallah (PW) has submitted its Red Herring Prospectus (RHP) for an Initial Public Offering (IPO) aiming to raise ₹3,480 crore. The public issue comprises a fresh issue of ₹3,100 crore, which will bring capital directly into the company for its growth and operations, and an offer for sale (OFS) of up to ₹380 crore. In the OFS, co-founders and promoters Alakh Pandey and Prateek Boob will sell shares worth ₹190 crore each, reducing their earlier planned OFS size. The IPO is scheduled to open for subscription on November 11 and close on November 13. Anchor investors will have their bidding period on November 10. The company anticipates that its shares will be listed on the stock exchanges on November 18. PhysicsWallah will not undertake any pre-IPO placement.

Impact: This IPO marks a significant event in the Indian Edtech sector, potentially attracting considerable investor interest and providing a valuation benchmark for similar companies. The reduced OFS by promoters could signal their confidence in the company's future prospects. The fundraising will likely fuel PhysicsWallah's expansion plans. Rating: 7/10.

Difficult Terms Explained: - Red Herring Prospectus (RHP): A preliminary document filed with the securities regulator (like SEBI) that contains detailed information about the company, its financials, the purpose of the IPO, and associated risks, subject to changes before the final prospectus. - Initial Public Offering (IPO): The process by which a private company offers its shares to the public for the first time, becoming a listed entity on a stock exchange. - Fresh Issue: The issuance of new shares by a company to raise capital directly for its business operations or expansion. - Offer For Sale (OFS): A mechanism where existing shareholders (promoters or early investors) sell a portion of their holdings to new investors. The proceeds go to the selling shareholders, not the company. - Anchor Bidding: A pre-IPO process where institutional investors subscribe to a portion of the issue a day before the public subscription opens, aiming to build confidence. - Pre-IPO Placement: Selling shares to select investors before the official IPO launch, typically at a negotiated price.