Physics Wallah IPO 2025 – Issue Details, Price Band, GMP & Things to Know
Physics Wallah is one of India’s fastest-growing edtech companies. Its IPO, targeting ~₹3,820 crore, is shaping up to be a major listing. Here’s a deep dive into everything you need to know before investing.
1. Company overview
Physics Wallah Limited (PW) started as a YouTube channel by Alakh Pandey in 2016, and later formally incorporated its edtech business in 2020. 2 It offers online & hybrid classes and offline centres for competitive exams like JEE, NEET, UPSC, and foundational schooling programs. It is headquartered in Noida, Uttar Pradesh. 3
2. IPO overview & issue size
Here are the key financial and structural details for the IPO as filed in the updated draft red herring prospectus (UDRHP):
- Total IPO size: approx **₹3,820 crore**. 4
- Fresh issue component: about **₹3,100 crore**. 5
- Offer for Sale (OFS) by promoters: about **₹720 crore**. 6
- Promoters offloading: Both Alakh Pandey and co-founder Prateek Boob (also referred to in filings) intend to sell shares worth ~₹360 crore each via OFS. 8
- Use of funds: Expansion of offline & hybrid centres, lease payments for centres, investment in subsidiaries, tech infrastructure. For example: ₹460.5 cr for fit-outs of new centres; ₹548.3 cr for lease payments of existing centres. 9
3. Key dates, price band & lot size
At the time of writing, some of the dates and price band details are yet to be finalised, but here is what’s reported:
- Price band: Not officially confirmed in public sources, but multiple reports cite the filing and expectation of an upcoming price band. 10
- Listing exchange: To be listed on both National Stock Exchange of India (NSE) & Bombay Stock Exchange (BSE) as a main-board offering. 13
- Lot size, exact open/close dates: Yet to be officially announced in the public filings (as per sources). 14
4. Grey Market Premium (GMP) – What we know so far
GMP—an indicator of listing sentiment in the grey market—has not yet been reliably established for this IPO. Some sources say:
“According to various online sources, the Grey Market Premium or GMP of Physics Wallah Limited is trading around Rs XX in the grey market.” 15
In short: No definitive GMP numbers are available yet. Investors should treat GMP as a speculative indicator—useful for sentiment, but not a guarantee of listing performance.
5. Strengths & growth drivers
Key strengths driving the listing include:
- Strong brand and large user-base in the edtech segment with low-cost offerings helping reach tier-2 and tier-3 cities. 16
- Rapid expansion of offline/hybrid-learning centres alongside online modes—offering a wider reach. 17
- High growth potential in Indian edtech and skill-up market as more students turn to online/hybrid education. 18
6. Risks & things to watch
Important risks include:
- Financial performance: While revenue growth is strong, losses persist in past years. 19
- Sector risk: The edtech industry faces regulatory changes, intense competition, and cost pressures. 20
- Business model risks: Offline centre expansion means fixed costs, lease payments, and safety/operational risks. For example, PW’s filing cites threats of incidents like falling ceiling fans and safety lapses. 21
- Valuation pressure: Since IPO is large (~₹3,820 cr), investor expectations will be high for growth and profitability. If outcomes fall short, there could be downside risk.
7. Investor checklist
Before applying, consider the following:
- Check the final price band once announced and compare to valuations of comparable companies.
- Monitor subscription levels during the issue—high oversubscription often hints at strong listing performance.
- Look at allotment pattern and share-holding post-IPO to understand promoter dilution.
- Have a clear time horizon: Are you applying for short-term listing gain or longer-term investment?
- Remember GMP is just indicative; do your own research on fundamentals and growth prospects.
8. Final thoughts
The Physics Wallah IPO represents a landmark event in India’s edtech space—combining a strong brand story, growth potential and a large-scale fundraising exercise. While the opportunity is appealing, the size of the IPO and execution risk mean investors should tread carefully and base decisions on both sentiment and fundamentals.
Once the final details (price band, lot size, open/close dates) are announced, check back for updated analysis and set your strategy accordingly.
