PhysicsWallah Launches ₹3,480 Crore IPO, Plans 500-Centre Expansion for Accessible Education

PhysicsWallah Limited is launching a ₹3,480 crore Initial Public Offering (IPO) with a price band of ₹103-₹109 per share, open from November 11-13. The IPO comprises a ₹3,100 crore fresh issue and a ₹380 crore Offer for Sale. The company plans to expand its physical network to 500 centers within three years, adding about 70 annually. Co-Founder Alakh Pandey highlighted the company's cash-positive model, generating over ₹500 crore cash flow from operations last year and holding a $300 million treasury, operating on a negative working capital cycle. Each new center typically breaks even within 18 months. PhysicsWallah's strategy prioritizes making education accessible through affordable pricing, even post-listing, focusing on reach over short-term profits. Funds will boost marketing, particularly in Southern India. The company is integrating AI, like AI Guru, for personalized learning and doubt-solving, expecting AI to empower, not disrupt, its business. Their five-year aim is to be India's largest education company by reach, focusing on Tier-3 towns and smaller cities. Impact: This IPO and aggressive expansion plan are highly significant for the Indian edtech sector, potentially setting new trends in accessibility and growth strategies. Investors will keenly observe its market performance, given its distinct value-driven approach. Impact rating: 8/10. Definitions: * IPO (Initial Public Offering): A company's first sale of stock to the public. * Offer for Sale (OFS): Existing shareholders selling their stake in an IPO. * ARPU (Average Revenue Per User): Average revenue generated per customer. * Cash-positive business model: Generates more cash than it spends. * Cash flow from operations: Cash generated from normal business activities. * Negative working capital cycle: Receives cash from customers before paying suppliers. * Tier-3 cities: Smaller cities in India. * AI Guru: PhysicsWallah's AI tool for student support.