What Makes PhysicsWallah’s IPO the Most Watched Edtech Listing on Dalal Street?
About PhysicsWallah and Its IPO
PhysicsWallah, India’s homegrown edtech unicorn founded by Alakh Pandey, is set to debut on Dalal Street with a massive ₹3,480 crore IPO. The issue will open on November 11 and close on November 13. It marks the first major IPO from the Indian edtech space after Byju’s valuation troubles, making this debut a closely watched event for investors and analysts alike.
RHP Highlights and Issue Structure
According to the company’s Red Herring Prospectus (RHP), PhysicsWallah’s ₹3,480 crore IPO will comprise two components — a fresh issue of ₹3,100 crore and an offer-for-sale (OFS) of ₹380 crore. The IPO is backed by marquee investors such as WestBridge Capital, Hornbill Capital, and GSV Ventures.
| Particulars | Details |
|---|---|
| IPO Size | ₹3,480 crore |
| Fresh Issue | ₹3,100 crore |
| Offer for Sale (OFS) | ₹380 crore |
| IPO Opening Date | November 11, 2025 |
| IPO Closing Date | November 13, 2025 |
| Allotment Date | November 14, 2025 |
| Listing Date | Expected around November 19, 2025 |
Valuation and Peer Comparison
The IPO values PhysicsWallah at approximately ₹28,000–₹30,000 crore, translating to a post-issue P/E in the range of 35–40x based on FY25 estimated earnings. Comparatively, listed peers in the digital education space and technology training domain trade between 28x to 45x. Analysts believe the valuation is aggressive but justified, considering PhysicsWallah’s 100 million+ user base and strong profitability track record.
Grey Market Premium (GMP) and Investor Sentiment
Initial grey market reports indicate a GMP of ₹90–₹110 per share, suggesting a likely listing premium of around 15–20%. However, experts caution that investor sentiment can shift quickly in the volatile edtech sector, and retail participation trends on Day 2 of the subscription window will be key indicators.
Risk Factors to Watch
- Revenue heavily dependent on NEET and JEE course enrollments.
- High competition from Unacademy, Vedantu, and government-backed online platforms.
- Potential policy changes in the online education sector could impact margins.
- Increased marketing and offline expansion may dilute profitability in FY26.
Investor Takeaway
The PhysicsWallah IPO offers exposure to a rare profitable edtech firm with strong brand recall and disciplined execution. Conservative investors may consider applying on the final subscription day after reviewing institutional demand. Those with a medium-term horizon could benefit from the company’s robust content moat and hybrid learning model.
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SEBI Disclaimer
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
