PhysicsWallah IPO: Subscribed 1.8X, But What Do Analysts REALLY Think? Retail Investors Get Their Share, But Will It List Strong?

Author

Akshat Lakshkar | Whalesbook News Team

Detailed Coverage:

The IPO of education technology firm PhysicsWallah, aiming to raise Rs 3,480 crore, has closed with a subscription rate of 1.8 times its offer size. Notably, the portion reserved for retail investors was fully subscribed at 106 percent, meaning most retail applicants are likely to receive allotments. Non-Institutional Investors (NII) subscribed 48 percent of their reserved portion, while Qualified Institutional Buyers (QIB) showed higher interest, subscribing 2.7 times their allocated shares.

The company's maiden public issue, which closed on November 13, has become the second-least subscribed Indian IPO in 2025 among those valued at over Rs 3,000 crore. The allotment for this issue is anticipated shortly, with shares slated for listing on stock exchanges on November 18.

Impact: The performance of this IPO and its listing price will provide insights into investor sentiment towards edtech companies, especially those focused on profitability challenges. It may influence future IPO pricing and investor appetite for similar ventures in the sector. A weak listing could signal caution for the edtech space, while a strong one might boost confidence. Rating: 6/10.

Difficult terms: IPO: Initial Public Offering, a company's first sale of stock to the public. Subscribed: The number of times an issue has been bid for compared to the number of shares offered. Offer size: The total value or number of shares offered by a company in an IPO. Retail investors: Individual investors who buy or sell securities for their own accounts. Allotment: The process of distributing shares to investors who applied for an IPO. Maiden public issue: The first time a company offers its shares to the public. Non Institutional Investors (NII): High-net-worth individuals and corporate bodies who invest more than the retail limit. Qualified Institutional Buyers (QIB): Large institutional investors like mutual funds, foreign institutional investors, and banks. Registrar: An entity that manages the IPO application and allotment process on behalf of the company. Grey market premium (GMP): The unofficial premium at which IPO shares trade in the grey market before listing. Listing: The first day a company's shares are traded on a stock exchange. Depreciation: The decrease in the value of an asset over time. Impairment losses: A charge taken when an asset's carrying value exceeds its recoverable amount. Financial assets: Assets like stocks, bonds, and bank deposits that have monetary value. EV/Sales multiple: A valuation metric comparing a company's enterprise value to its total revenue. P/E basis: Price-to-Earnings ratio, a valuation metric comparing a company's share price to its earnings per share. Ed-tech: Education technology, the use of technology in education. Brand recall: The extent to which a consumer can identify a brand. Profitability: The ability of a business to generate earnings. Execution challenges: Difficulties in carrying out business plans or strategies. Offline expansion: Expanding business operations into physical locations. Scaling costs: Expenses incurred when a business grows larger. Earnings visibility: The predictability of a company's future profits. Downside risks: Potential negative factors that could affect a company's performance. Promoter’s face value: The primary individual or group that founded and controls the company. Faculty attrition: The rate at which teachers or instructors leave a company. CAGR: Compound Annual Growth Rate, the average annual growth rate over a specified period. Valuation-driven exuberance: Excessive positive sentiment leading to inflated stock valuations. Profit-backed credibility: A company's reputation built on consistent financial performance.