PhysicsWallah IPO Listing: Edtech Company’s Shares Make Strong Debut With 33% Premium

PhysicsWallah IPO Listing Price: Edtech company PhysicsWallah’s shares listed on the NSE and BSE on November 18. Shares of the edtech company listed with a premium/discount on the bourses.

PhysicsWallah shares made their debut at Rs 145 per share with gains of over 33 per cent against the issue price of Rs 109 apiece. On the BSE shares of PhysicsWallah shares listed at Rs 143 apiece with 31.1 per cent premium.

PhysicsWallah IPO Listing Gains

IPO investors who were allotted at least one lot of shares in the retail category would have gained at least Rs 4,932 (Rs 145 - Rs 109 x 137). Following the listing of its shares nearly 5.83 lakh shares of PhysicsWallah Ltd changed hands on the BSE and the total market capitalisation of the company stood at Rs 40,922.2 crore.

PhysicsWallah IPO: Details

PhysicsWallah Ltd raised Rs 3,480.71 crore through its public issue. The edtech company’s public issue consisted of a fresh issue of 284.5 million shares aggregating to Rs 3,100.71 crore and an offer for sale of 34.9 million shares aggregating to Rs 380 crore.

The minimum lot size for application for retail investors was fixed at 1 lot comprising 137 shares, which aggregated to an investment of Rs 14,933. PhysicsWallah IPO saw tepid demand in its three-day subscription window. PhysicsWallah IPO was subscribed 1.81 times across categories. As many as 336.22 million shares of PhysicsWallah were bid for against the 186.2 million shares offered for subscription.

In the three-day bidding window, qualified institutional bidders led the demand for PhysicsWallah Ltd shares, booking their quota 2.7 times. On the other hand, non-institutional investors and retail individual investors booked their quota 48 per cent and 1.06 times respectively. Employees of PhysicsWallah Ltd subscribed their quota 3.49 times in the three-day bidding window.

PhysicsWallah IPO: Objective

PhysicsWallah Ltd plans to use the IPO proceeds for capital expenditures such as fit-outs for its new offline and hybrid centres, lease payments of existing identified offline and hybrid centers operated by the company, adding fit outs to new offline centers of the company’s subsidiary Xylem, lease payments for Xylem’s existing identified offline centers and hostels.

A portion of the proceeds will also be used for investment in the company’s subsidiary, Utkarsh Classes & Edutech Private Ltd for expenditure towards lease payments for Utkarsh Classes’ existing identified offline centers. A part of the public issue proceeds will also be used for server and cloud related infrastructure costs, marketing initiatives. The proceeds will also be used for acquiring additional shareholding in the company’s subsidiary, Utkarsh Classes & Edutech Private Ltd. The proceeds will also be used for funding inorganic growth through unidentified acquisitions and general corporate purposes.

PhysicsWallah: Business Model

Physics Wallah (PW) operates on a hybrid freemium business model which seeks to provide affordable education through a mix of online platforms and offline coaching centers. The company’s core strategy is to cater to the educational needs of price-sensitive students in India's Tier 2 and Tier 3 cities who are preparing for competitive exams. The edtech company generates revenue via paid courses, supplemented by sales of study materials, value-added services, and advertisements.

PhysicsWallah: Peers

The edtech company has no listed peers presently. However, some of the company’s major unlisted peers include other edtech companies and offline coaching institutes such as Unacademy, BYJU'S, and Vedantu, as well as traditional offline coaching institutes such as Allen Career Institute and Aakash Educational Services.