PhysicsWallah IPO: Almost every retail investor could get allotment today; here’s why

PhysicsWallah IPO

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26 Aug, 2025 12:21

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PhysicsWallah IPO closed on November 13 for public subscription after being subscribed 1.8 times its offer size. Almost every retail investor who applied for the Rs 3,480-crore IPO is likely to get allotment as the portion reserved for them was booked 106 percent.

The allotments for the maiden public issue of the company are likely to be announced later today, and the shares are scheduled to be listed on stock exchanges on November 18.

The maiden public issue of the company received bids for nearly 33.62 crore shares, as against an offer size of 18.62 crore shares, according to data on NSE. Retail investors just fully booked their reserved portion (106 percent), while Non Institutional Investors (NII) subscribed 48 percent of the portion kept for them. Qualified Institutional Buyers (QIB) subscribed the portion kept for them nearly 3 times (270 percent).

Applicants can check their IPO allotment status on the official website of the registrar, MUFG Intime India (formerly Link Intime India), as well as on the websites of stock exchanges BSE and NSE.

PhysicsWallah IPO has become the second-least subscribed Indian IPO, worth more than Rs 3,000 crore, launched in 2025. Dr Agarwals Health Care IPO took the unenviable top spot as the Rs 3,027-crore IPO was subscribed 1.49 times during its three days of public bidding in January this year.

Take a look at the list of IPOs launched in 2025 so far which aimed to raise over Rs 3,000 crore from the primary capital market and how much they got subscribed:

Tata Capital's Rs 15,512-crore IPO took the third spot, being subscribed 1.96 times during its three days of public bidding.

Ahead of listing, the unlisted shares of the company were trading with 2.75 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. The grey market estimates have improved today from  the nil gains quoted by the site earlier yesterday.

It is however still lower than the 3.67 percent GMP quoted by the site during the weekend, and 4.59 percent quoted last week.

According to IPO Watch, the unlisted shares of the company were trading with less than zero percent GMP over the IPO price, ahead of listing.

SBI Securities remained 'Neutral' on the IPO, adding that it would like to monitor the performance of the company post listing. The domestic brokerage noted that the company which offers test-preparation courses for competitive examinations and other upskilling courses is among the top 5 edtech companies in terms of revenue in India.

However, PhysicsWallah's net loss widened from Rs 81 crore in FY23 to Rs 216 crore in FY25 due to higher depreciation expenses and impairment losses on financial assets. "At upper price band of Rs 109, the issue is valued at EV/Sales multiple of 9.7x based on the post-issue capital, which seems fairly valued," SBI Securities said.

Angel One said that PhysicsWallah's financials cannot be compared on a P/E basis as it remains a loss-making company, with no listed like-to-like peers in the Indian ed-tech space. "While the company continues to deliver strong revenue growth and enjoys high brand recall, profitability remains constrained by rising competition and elevated scaling costs. Hence, we assign a 'Neutral' rating, recommending investors to wait for clearer earnings visibility before taking a long-term position," it said.

Angel One also noted that execution challenges from rapid offline expansion along with continued losses and uncertain profitability remain key risks to the IPO.

InCred Equities recommended subscription to PhysicsWallah IPO, as it expects profitability over the medium- to long-term as the business scales up. It noted that the firm has demonstrated significant growth over the years in both online and offline business verticals.

“The valuation of PW seems to be stretched but looking at the strong moat and topline/business expansion, the company is well-placed to disrupt the edtech space,” it said. However, while noting down the downside risks, InCred listed brand reputation among the student community is sensitive, dependence on the promoter’s face value, and high attrition rate of the faculty/talent.

Also read: Steps to check PhysicsWallah IPO allotment

"At its upper-band valuation, PW trades at a premium to traditional education players like MT Educare or CL Educate, justified only if its growth sustains above 25–30% CAGR in the next three years. The listing will test whether India’s edtech can transform from valuation-driven exuberance to long-term, profit-backed credibility," said Harshal Dasani, Business Head, INVasset PMS.

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