PhysicsWallah IPO Final Day: Retail Rushes In, But Big Investors Stay Away! Will It Survive?

Tech

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Updated on 13 Nov 2025, 07:11 am

The Initial Public Offering (IPO) of edtech unicorn PhysicsWallah experienced a muted reception on its final day of bidding, achieving only 16% subscription by 11:00 AM IST. The issue received bids for 2.95 crore shares against the 18.62 crore shares on offer. Retail investors subscribed 71% of their reserved portion, while non-institutional investors (NIIs) saw only 8% subscription, and qualified institutional buyers (QIBs) showed minimal interest. The employee reservation portion was oversubscribed 2.1 times. The IPO, priced between INR 103 to INR 109, includes a fresh issue of up to INR 3,100 crore and an OFS of up to INR 380 crore. Funds will be used for expanding offline coaching centres and brand building. At the upper band, the company seeks a valuation of INR 31,169 crore (approx. $3.5 billion), about 25% higher than its last round. PhysicsWallah reported a net loss of INR 125.5 crore in Q1 FY26 (up 78% YoY), with operating revenue up 33% to INR 847 crore. FY25 saw a net loss of INR 243.3 crore, narrowed from INR 1,131.1 crore, and revenue grew 49% to INR 2,886.6 crore. Impact: This news directly impacts the Indian stock market by affecting investor sentiment towards the Edtech sector and potentially the performance of PhysicsWallah upon listing. The lukewarm response, especially from institutional investors, could deter future IPOs in the sector. Rating: 7/10. Terms: IPO (Initial Public Offering): When a private company offers its shares to the public for the first time to raise capital. Subscription: The extent to which an IPO issue is bought by investors. A subscription of 16% means only 16% of the shares offered were bid for. Retail investors: Individual investors who buy or sell shares for their own account. Non-institutional investors (NIIs): Investors who are not institutional investors, typically high-net-worth individuals or corporate bodies. Qualified Institutional Buyers (QIBs): Institutional investors like mutual funds, venture capital funds, insurance companies, etc., registered with SEBI. Oversubscribed: When the demand for shares in an IPO exceeds the number of shares offered. Offer for Sale (OFS): An offer by existing shareholders of a company to sell their shares to the public. Anchor investors: Institutional investors who commit to buying shares in an IPO before it opens to the public. YoY: Year-on-Year, a comparison of a period with the same period in the previous year. FY: Fiscal Year. In India, it typically runs from April 1 to March 31. Valuation: The estimated worth of a company.