PhysicsWallah IPO to Open on November 11 for Rs 3,480 Crore Subscription

The much-awaited Initial Public Offering (IPO) from the edtech company PhysicsWallah will be open for public subscription between November 11 and November 13. The company plans to raise a substantial Rs 3,480 crores through this book build issue. This includes Rs 3,100.00 crores from a fresh issuance of shares and Rs 380.00 crores from an offer for sale. The funds generated from the IPO are earmarked for capital expenditures aimed at expanding the company's presence through new offline and hybrid learning centers. Co-founders Alakh Pandey and Prateek Boob, along with venture capital investors WestBridge Capital and Hornbill Capital, hold significant stakes in the company. Kotak Mahindra Capital is serving as the lead manager for this IPO. The anchor book will open for institutional investors on November 10, and the stock is expected to list on exchanges around November 18.

Impact Rating: 8/10

Difficult Terms: * IPO (Initial Public Offering): This is the process where a private company first offers its shares to the public, becoming a publicly traded company. * Book Build Issue: A method of IPO pricing where the underwriter/company builds demand by inviting bids from investors within a price band. The final price is determined based on the bids received. * Fresh Issue: When a company issues new shares to raise capital. The money goes directly to the company. * Offer for Sale (OFS): When existing shareholders (like founders or early investors) sell a portion of their shares to new investors. The money goes to the selling shareholders, not the company. * Capital Expenditures (CapEx): Funds used by a company to acquire, upgrade, and maintain physical assets like property, buildings, and equipment. * Anchor Book: A private placement of shares to a select group of institutional investors before the IPO opens to the public. It helps build confidence and price discovery. * Book-running Lead Manager: The investment bank responsible for managing the IPO process, including pricing, marketing, and distributing shares. * Registrar: An entity responsible for maintaining the IPO application records, share allotment, and refunds.