PhysicsWallah IPO: Edtech Company Announces Price Band For Public Issue – Should You Apply?

PhysicsWallah IPO: Several companies which have become household names have launched their initial public offerings (IPOs) in the second half of 2025. Some of the major companies which have already launched their public issues include Lenskart, Billionbrains Garage Ventures (Groww) and LG Electronics India, among others. However, as the year draws towards a close, the IPO rush is far from over, with edtech company PhysicsWallah announcing the dates and price band for its public issue.

The PhysicsWallah IPO is scheduled to open for subscription on November 11, 2025 and close on November 13. Here’s a look at some of the key details of the edtech company’s public issue before you decide to apply for it.

PhysicsWallah IPO: Offer Size, Listing Date, Price Band 

PhysicsWallah’s IPO offer size aggregates to Rs 3,480 crore. The edtech company’s issue consists of an equity issue of 284.40 million shares aggregating to Rs 3,100 crore and an offer for sale (OFS) of 34.90 million shares aggregating to Rs 380 crore.

The price band has been fixed at Rs 103-109 per share. The minimum lot size for retail investors has been set at one lot consisting of 137 shares aggregating to a minimum investment of Rs 14,933.

The basis of allotment for PhysicsWallah IPO is expected to be determined on November 14. Following the finalisation of the allotment status, successful applicants will receive the shares in their demat accounts on November 17. The shares are slated to list on the BSE and NSE on November 18.

PhysicsWallah IPO GMP

The grey market premium (GMP) is Rs 9 per share on November 6, according to multiple websites which monitor the movement of unlisted shares in the grey market. Based on the premium, shares of the edtech firm can list at Rs 118 apiece with potential listing gains of over 8 per cent.

PhysicsWallah: Key Financials

PhysicsWallah posted a total income of Rs 905.41 crore for the June quarter of FY26.  The edtech firm’s net loss in the quarter under review stood at Rs 127.01 crore and the net worth stood at Rs 1,867.92 crore.

PhysicsWallah posted a 50 per cent growth in total income in FY25 at Rs 3,039.09 crore, up from Rs 2,015.35 crore in FY24. The net loss of the edtech firm narrowed to Rs 243.26 crore in FY25 from Rs 1,131.13 crore in FY24. The net worth of the company stood at Rs 1,945.37 crore in FY25 compared to Rs 861.79 crore in the preceding fiscal.

PhysicsWallah: Business Model

PhysicsWallah’s business functions on a hybrid model. The edtech firm seeks to provide affordable education through free online content and paid online and offline coaching centres. The company’s core business model focuses on accessibility and volume catering to students in Tier 2 and Tier 3 cities.

The company generates revenue through online and offline course fees. The edtech company charges subscriptions and one-time payments for a range of paid courses. Another revenue stream for the company is the sale of books, mock test series and branded merchandise. The company also generates revenue vis-à-vis YouTube AdSense and other limited, education-related brand promotions on its platforms.

PhysicsWallah: Competitors

The company mentioned in its red herring prospectus (RHP) that it has no listed peers, as there are no other companies in the education industry which have comparable size, scale and business model. However, the company competes with other edtech and other educational institutions which offer coaching for competitive exams in India.

According to its RHP, the company competes with UPSC entrance test preparation players, such as VDK Eduventures (Drishti IAS), Ajayvision Education (Vision IAS), Veranda Learning Solutions (Veranda Learning), Mahendra Educational (Mahendra’s) and Made Easy Education (Next IAS).

The company also competes with other educational institutes offering test preparation for NEET and JEE. Some of the major institutes with comparable revenue to PhysicsWallah include Allen Career Institute, Aakash Educational Services, Sorting Hat Technologies (Unacademy) and Veranda Learning Solutions.

PhysicsWallah IPO: Risks and Strengths

PhysicsWallah’s business faces these risks, according to its RHP:

• PhysicsWallah mentioned in its RHP that it has incurred losses of Rs 1,270.09 million, Rs 718.12 million and Rs 2,432.58 million for the three months ended June 30, 2025 and June 30, 2024, and FY 2025, respectively. The company also had a negative net worth and negative earnings before interest tax depreciation and amortisation (Ebitda) as of March 31, 2024. Thus, inability to generate adequate revenue growth and manage expenses and cash flows can lead to future losses and negatively affect the company’s financial condition.

•  The edtech company derives a significant portion of its offline revenue from the centres located in northern India, such as Delhi NCR, Kota, Lucknow and Patna. While the company also has centres in Calicut and Kolkata, failure to expand the network of offline centres could expose the company to concentration risks, which could impact business and operations.

•  The edtech firm mentioned in its RHP that it has less control on the operations of some of its offline centres which are operated under franchisee arrangements, which may have a material negative effect on its reputation, business, cash flows and financial condition.

Here’s a look at some of the key strengths of PhysicsWallah according to the company’s RHP:

• PhysicsWallah claims to have a strong presence across a large number of education categories in India with courses offered through multiple channels. As of June 30, 2025, the company offered courses across 13 categories.

•  The edtech firm claims to have 4.46 million paid users in fiscal 2025 which grew at a compounded annualised growth rate (CAGR) of 59.19 per cent between FY23 and FY25, driven by a student community-led approach.

•  The company also has specialised faculty members across categories, quality content, and a well-planned curriculum, according to its RHP. As of June 30, 2025, the company had a total faculty strength of 6,267 (including employees and consultants).

PhysicsWallah IPO: Objective

PhysicsWallah plans to use the proceeds of the public issue for fit-outs at its new centres and lease payments of existing identified centres. The proceeds will also be used for fit-outs and lease payments for the company’s subsidiary, Xylem’s centres and hostels. A part of the proceeds will also be invested in its subsidiary, Utkarsh Classes & Edutech, for expenditure towards lease payments for Utkarsh Classes’ existing identified offline centres.

Other expenditures, such as the setting up of a server and cloud related infrastructure and marketing initiatives will also be funded through the proceeds. The proceeds will also be used to fund organic and inorganic growth vis-a-vis the acquisition of additional stake in Utkarsh Classes & Edutech.