Physics Wallah Announces IPO: Opens November 11 with ₹103-₹109 Price Band, Valued at ₹31,169 Crore

Physics Wallah's Initial Public Offering (IPO) is scheduled to open on November 11, 2025, and will close on November 13, 2025. Anchor investors will have the opportunity to bid on November 10. The company has established a price band of ₹103 to ₹109 per equity share. At the higher end of this band, the IPO is expected to value Physics Wallah at ₹31,169 crore, significantly higher than its $2.8 billion valuation in September 2024.

The offering comprises a fresh issue of equity shares worth up to ₹3,100 crore and an offer for sale (OFS) of equity shares aggregating up to ₹380 crore.

Funds raised will be allocated to several strategic objectives: approximately ₹460.55 crore for the fit-out of new offline and hybrid centers, ₹548.31 crore for lease payments of existing centers. An investment of ₹47.17 crore is planned for its subsidiary, Xylem Learning Private Ltd, including setting up new centers and lease payments. Another ₹28 crore will be invested in Utkarsh Classes & Edutech Private Limited for lease payments. Furthermore, ₹200.11 crore is allocated for server and cloud infrastructure, and ₹710 crore for marketing initiatives. The company also plans to spend ₹26.5 crore to increase its shareholding in Utkarsh Classes & Edutech Private Limited. The remaining proceeds will support inorganic growth through unidentified acquisitions and general corporate purposes.

Physics Wallah operated 303 centers by the end of Q1 FY26, a 68% increase year-on-year. Financially, the company reported a net loss of ₹125.5 crore in Q1 FY26, up 78% from the prior year, while operating revenue increased by 33% to ₹847 crore. In FY25, the net loss narrowed by 78% to ₹243.3 crore, with revenue from operations jumping 49% to ₹2,886.6 crore.

Impact: This IPO represents a significant event for the Indian Edtech sector, signaling continued investor interest. The capital infusion will fuel Physics Wallah's expansion plans, potentially strengthening its market position. Investors will closely monitor subscription levels and post-listing performance to gauge the Edtech market's health and outlook. Rating: 8/10.

Difficult Terms: * **Initial Public Offering (IPO)**: The first time a private company offers its shares to the public, allowing it to raise capital and become a publicly traded entity. * **Price Band**: A range within which investors can place their bids for shares during an IPO. * **Anchor Bidding**: A process where institutional investors bid a day before the IPO opens to provide stability and confidence to the issue. * **Offer for Sale (OFS)**: A process where existing shareholders sell a portion of their holdings to new investors as part of an IPO. * **Net Proceeds**: The total funds raised from an IPO after deducting all expenses related to the issue. * **Capital Expenditure (Capex)**: Funds spent by a company to acquire, upgrade, and maintain physical assets such as property, buildings, and equipment. * **Subsidiary**: A company that is owned or controlled by another company, known as the parent or holding company. * **Inorganic Growth**: Expansion of a company through the acquisition of other companies, rather than through increasing production or sales of its existing products. * **General Corporate Purposes**: Funds used for the day-to-day operational needs and general business activities of the company. * **Operating Revenue**: The total income generated from a company's primary business activities before deducting expenses. * **Net Loss**: The financial situation where a company's total expenses exceed its total revenues over a specific period.