Think Investments Invests ₹136 Cr in PhysicsWallah Pre-IPO; Edtech Giant Gears Up for Public Offering

Global investment firm Think Investments has made a strategic investment of ₹136.17 crore in the edtech unicorn PhysicsWallah. This funding round is a pre-initial public offering (IPO) infusion, signaling confidence as PhysicsWallah prepares for its public debut next week. Think Investments acquired 1.07 crore equity shares, representing a 0.37% stake, from 14 PhysicsWallah employees. The transaction was conducted at ₹127 per share, which is 17% higher than the IPO's expected issue price.

PhysicsWallah is set to launch its substantial ₹3,480-crore IPO on November 11, with the price band fixed at ₹103-109 per share. At the upper end of this band, the company is aiming for a valuation of over ₹31,500 crore. The IPO comprises a fresh issue of ₹3,100 crore to fund expansion and growth initiatives, alongside an offer-for-sale (OFS) component of ₹380 crore by its co-founders and promoters, Alakh Pandey and Prateek Boob. Following the IPO, the promoters' stake will reduce from 80.62% to 72%. Early investors are not selling their stakes in this offering. The IPO will close on November 13, with anchor investor allocation on November 10.

Impact: This pre-IPO funding round provides PhysicsWallah with significant capital and validation from a respected global investor, potentially boosting investor appetite for its upcoming IPO. The successful execution of the IPO could lead to increased liquidity, enhanced brand recognition, and further expansion opportunities for the company. The edtech sector, which has seen volatility, will closely watch PhysicsWallah's public listing for signs of investor sentiment. Rating: 7/10

Difficult Terms: * **IPO (Initial Public Offering)**: The process by which a private company offers its shares to the public for the first time, becoming a publicly traded company. * **Unicorn**: A privately held startup company valued at over $1 billion. * **Pre-IPO Funding**: Capital raised by a company from investors shortly before it goes public through an IPO. * **Equity Shares**: The basic form of ownership in a corporation, representing a claim on the company's assets and earnings. * **Issue Price**: The price at which shares are offered to the public during an IPO. * **Public Announcement**: A formal declaration made to the public, often by a company regarding significant events. * **Share Purchase Agreement**: A legal contract detailing the terms and conditions for the sale and purchase of shares between a buyer and a seller. * **Amendment Letter**: A document that modifies or changes terms previously agreed upon in a contract. * **Aggregate Consideration**: The total amount of money or value exchanged in a transaction. * **Fund**: A pool of money managed by an investment company for the purpose of investing in securities or other assets. * **Offer-for-Sale (OFS)**: A mechanism where existing shareholders of a company sell their shares to the public, as part of an IPO or otherwise, without the company issuing new shares. * **Promoters**: Individuals or entities who initiate the formation of a company and are instrumental in bringing it to market. * **Anchor Investor**: Large institutional investors who commit to buying a significant portion of shares offered in an IPO before it opens to the general public.