PhysicsWallah IPO Opens November 11, 2025, Targeting ₹3,480 Crore Fundraise

PhysicsWallah (PW), a prominent education-technology platform, is set to open its Initial Public Offering (IPO) on November 11, 2025, with the subscription period concluding on November 13, 2025. The company aims to raise ₹3,480 crore through this offering. The IPO structure includes a fresh issuance of equity shares valued at ₹3,100 crore, intended to fund the company's growth initiatives, and an Offer for Sale (OFS) of ₹380 crore, through which co-founders Alakh Pandey and Prateek Boob will divest a part of their holdings.

The shares are priced within a band of ₹103 to ₹109 each, with a minimum lot size of 137 shares for retail investors. Anchor investor bidding is scheduled for November 10, 2025. MUFG Intime India is the registrar, and Kotak Mahindra Capital Company, J P Morgan India Private Limited, Goldman Sachs (India) Securities Private Limited, and Axis Capital Limited are the book-running lead managers.

Funds raised will be strategically deployed. Approximately ₹460.55 crore is allocated for fit-outs of new offline and hybrid centres, and ₹548.31 crore for lease payments of existing centres. Additional funds are designated for Xylem centres, investment in subsidiary Utkarsh Classes & Edutech Private Limited, server and cloud infrastructure (₹200.11 crore), marketing initiatives (₹710 crore), and inorganic growth via acquisitions (₹26.50 crore).

**Key Strengths**: PhysicsWallah exhibits rapid user growth (61.9% CAGR since FY23), diverse course offerings, a multi-channel delivery model (online, offline, hybrid), and strong brand presence with 1.37 crore YouTube subscribers. It has also made strategic acquisitions and boasts a tech-driven, scalable platform. Revenue has surged from ₹744 crore in FY23 to ₹2,899 crore in FY25.

**Key Risks**: The company faces significant challenges, including persistent net losses (₹840 crore in FY25), high employee attrition rates, revenue concentration in key segments like NEET and JEE, and dependence on specific regions. Risks also arise from offline expansion complexities, potential litigation, and integration uncertainties from acquisitions.

**Impact** This IPO is crucial for PhysicsWallah's expansion plans and could influence investor sentiment towards the Indian ed-tech sector. Its success will depend on its ability to manage growth and profitability effectively. Investors should closely monitor the company's financial performance and execution of its expansion strategies.

**Impact Rating**: 7/10

**Difficult Terms** * **IPO (Initial Public Offering)**: A process where a private company offers its shares to the public for the first time, becoming a publicly traded entity. * **Fresh Issue**: The creation and sale of new shares by a company to raise capital. * **Offer for Sale (OFS)**: When existing shareholders sell a portion of their shares to new investors, allowing them to cash out without the company issuing new stock. * **Book-Running Lead Managers**: Investment banks responsible for managing the IPO process, including underwriting and marketing. * **Anchor Investor**: Institutional investors who commit to purchasing shares before the IPO opens to the general public, providing early stability and commitment. * **CAGR (Compound Annual Growth Rate)**: The average annual rate of growth of an investment over a specified period, assuming profits are reinvested. * **Net Losses**: The total amount by which a company's expenses exceed its revenues over a specific period. * **Attrition**: The rate at which employees leave an organization over a given time. * **Inorganic Growth**: Business expansion achieved through external means like mergers and acquisitions, rather than internal development.