Edtech platform PhysicsWallah (PW), known for making quality education accessible, has successfully translated its strong brand equity into a stellar stock market debut. On Tuesday, November 18, the stock listed at ₹145 apiece on the National Stock Exchange (NSE), delivering a massive 33.03% premium over its IPO issue price of ₹109 per share. The listing was equally strong on the BSE, opening at ₹143.90.
What Investors Gained
For investors who secured an allotment, the listing was highly profitable, easily making it one of the most exciting new-age listings of the year.
- Issue Price: ₹109 per share
- NSE Listing Price: ₹145 per share
- Premium per Share: $₹145 – ₹109 = ₹36$
The minimum investment was one lot, which comprised 137 shares. This translated into a direct listing gain of ₹4,932 per lot ($₹36 \times 137 \text{ shares}$). This strong performance defied earlier subdued grey market predictions and demonstrated the market’s confidence in the company’s hybrid expansion strategy.
Funding the Future of EdTech
The IPO, which comprised a ₹3,100 crore fresh issue, was launched to fuel PhysicsWallah’s ambitious growth plan. The funds will be heavily directed toward scaling up its physical infrastructure to support its omnichannel approach.
The major areas of utilization include:
- Offline Expansion: ₹460.55 crore for fit-outs of new offline and hybrid centres.
- Operational Stability: ₹548.30 crore for lease payments for existing centres.
- Technology Upgrade: ₹200.10 crore for cloud and server infrastructure.
- Brand Building: A significant ₹710 crore earmarked for marketing initiatives.
By blending its successful online presence with a rapidly expanding network of offline and hybrid centres, PhysicsWallah is strategically positioning itself for sustained growth in India’s competitive education sector.
Would you like to review the key financial figures (Revenue, Loss) of PhysicsWallah leading up to the IPO?
