The initial public offering (IPO) of edtech unicorn PhysicsWallah entered its second day of subscription on Wednesday with a subdued investor response. The issue, which opened on Tuesday, November 11, will close on Thursday, November 13.
According to market data, the PhysicsWallah IPO has been subscribed 12% as of day two. The retail investor segment has received around 57% subscription, while the non-institutional investor (NII) portion has been booked 5%. The qualified institutional buyer (QIB) category has yet to see any participation. Meanwhile, the employee quota has been subscribed 1.75 times.
On the opening day, the IPO saw a 7% overall subscription, with the retail portion booked 33% and the NII portion 2%, while the employee segment achieved 1.11 times subscription.
IPO Structure and Allocation
The PhysicsWallah IPO comprises a fresh issue of shares worth ₹3,100 crore, along with an Offer for Sale (OFS) of ₹380 crore by the company’s promoters.
Promoters Alakh Pandey and Prateek Boob will each offload shares worth ₹190 crore through the OFS. Both currently hold 40.31% stake in the company.
In terms of allocation, 75% of the issue has been reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors. Shares worth ₹70 million have also been earmarked for company employees.
The IPO is priced in the range of ₹103–₹109 per share.
Grey Market Premium (GMP) Trends
The PhysicsWallah IPO grey market premium (GMP) currently stands at ₹1.25, reflecting weak market sentiment. Based on the upper end of the price band, the expected listing price is around ₹110.25 per share, suggesting a modest 1.15% premium over the issue price.
Analysts note that the GMP has declined consistently over the past nine sessions, fluctuating between ₹1.25 and ₹9.00, and could drop further as the issue nears closure.
Important Dates
The basis of allotment for the IPO is likely to be finalized on Friday, November 14. Refunds are expected to begin on Monday, November 17, with shares credited to successful bidders’ demat accounts the same day. The listing of PhysicsWallah shares on the BSE and NSE is scheduled for Tuesday, November 18.
Company Background and Objective
Noida-headquartered PhysicsWallah, founded by Alakh Pandey, has emerged as one of India’s leading edtech platforms. The company filed its draft papers with SEBI in March under the confidential pre-filing process and received regulatory approval in July. It later submitted its Red Herring Prospectus (RHP) in September.
Proceeds from the IPO will be utilized to support business expansion, product development, and growth initiatives.