Noida-based online education platform Physicswallah, which is backed by WestBridge Capital, Hornbill, and GSV Ventures, has filed Updated Draft Red Herring Prospectus with the SEBI on September 6 to raise Rs 3,820 crore via initial share sale.
The education company proposed to raise Rs 3,100 crore via issuance of new shares, while the promoters Alakh Pandey, and Prateek Boob will be selling Rs 720 crore via offer-for-sale (OFS).
The capital markets regulator had approved its Pre-filing of Draft Red Herring Prospectus in July this year. This confidential pre-filing route allows companies to get regulatory review from the SEBI before making them public.
The edu-tech firm that offers test preparation courses for competitive examinations, and courses for upskilling plans to spend Rs 460.6 crore of fresh issue proceeds for fit-outs of new offline and hybrid centers, Rs 548.3 crore for lease payments of existing identified offline and hybrid centers, and Rs 47.2 crore for investment in subsidiary, Xylem Learning for its expenditure.
Further, Rs 33.7 crore will be utilised for investment in another subsidiary, Utkarsh Classes & Edutech for its lease payments for existing identified offline centers, and Rs 26.5 crore for acquisition of additional shareholding in Utkarsh Classes.
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Also, it will spend Rs 200.1 crore for server and cloud related infrastructure costs, and Rs 710 crore for marketing initiatives. The remainder amount will be set aside for unidentified acquisitions and general corporate purposes.
Promoters currently hold 82.3 percent stake in Physicswallah with Alakh and Prateek having 40.35 percent shareholding each, while public shareholding in the company is 17.7 percent.
WestBridge AIF I, the venture capital fund managed by Mauritius-based investment firm WestBridge Capital, is the largest shareholder in the company after promoters, with 6.41 percent stake, followed by Hornbill Capital Partner with 4.42 percent stake.
US-based venture capital firm GSV Ventures' Fund III holds 2.85 percent shares, followed by Lightspeed Opportunity Fund (1.79 percent stake), and Setu AIF Trust (1.39 percent).
Physicswallah that conducts test preparation courses focusing on JEE, NEET, GATE and UPSC has significantly reduced its net loss to Rs 243.2 crore in the year ended March 2025, narrowing from loss of Rs 1,131.1 crore in the previous year. However, revenue soared sharply by 48.7 percent to Rs 2,886.6 crore, up from Rs 1,940.7 crore in the same period.
Kotak Mahindra Capital Company, JP Morgan India, Goldman Sachs (India) Securities, and Axis Capital are managing the Physicswallah IPO.
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