Physics Wallah IPO Stumbles: Edtech Giant's Mega Launch Sees a Slow Start - What Investors Need to Know!

The Initial Public Offering (IPO) of edtech company Physics Wallah, valued at Rs 3,480 crore, faced a weak start on its first day of bidding, achieving a subscription of only 7.5% as of Tuesday evening, according to stock exchange data. The IPO, which commenced on November 11 and will conclude on November 13, comprises a fresh issuance of shares worth Rs 3,100 crore alongside an offer-for-sale (OFS) component amounting to Rs 380 crore. The shares are being offered in a price band of Rs 103 to Rs 109 each. Listing is tentatively scheduled for November 18 on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Subscription details reveal a slow uptake across most investor categories on the first day. The retail investor segment was subscribed 0.35 times, and the non-institutional investor (NII) segment saw only 0.03 times subscription. Qualified Institutional Buyers (QIBs) had not placed any bids by Tuesday evening, while the employee quota was subscribed 1.18 times.

Before the IPO, Physics Wallah successfully raised Rs 1,563 crore through an anchor round, attracting participation from numerous domestic and international institutional investors.

Despite the IPO's slow start, Physics Wallah has shown operational growth, expanding its centres by 68% year-on-year to 303 by Q1 FY26. Financially, the company reported a net loss of Rs 125.5 crore in Q1 FY26, an increase from Rs 70.6 crore in the previous year, even as its operating revenue grew by 33% to Rs 847 crore.

Impact This initial subscription data might signal cautious investor sentiment towards the edtech sector or this specific offering, potentially affecting its market debut performance and valuation. A low subscription can sometimes lead to a weaker listing. A rating of 5/10 for immediate market impact on the IPO's performance.

Difficult 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 company. Offer-for-Sale (OFS): An existing shareholder sells their shares to new investors during an IPO. Subscription: The process of investors bidding for shares offered in an IPO. Retail Investor: An individual investor who buys or sells securities for their own account. Non-Institutional Investor (NII): Investors who are not institutional investors and typically invest larger amounts than retail investors. Qualified Institutional Buyer (QIB): Large institutional investors like mutual funds, foreign institutional investors, and venture capital funds. Anchor Round: A pre-IPO fundraising activity where a company allots shares to a select group of institutional investors before the public issue opens. Net Loss: When a company's expenses exceed its revenues over a period. Operating Revenue: The income generated from a company's primary business activities.