Zerodha flags ‘unique risks’ in PhysicsWallah IPO filing: Flying slippers, falling ceiling fans

PhysicsWallah noted that safety breaches — including harassment by students or faculty — have occurred in the past. Although it has implemented safeguards to prevent such incidents, it cannot guarantee their effectiveness or rule out events beyond its control. (Screengrab of one such incident that went viral)

Online trading platform Zerodha has flagged what it calls a “unique risk” in the updated Draft Red Herring Prospectus (DRHP) filed by PhysicsWallah, one of India’s largest edtech companies, ahead of its Rs 3,820 crore initial public offering. While most IPO filings list standard risks like competition and regulatory hurdles, PhysicsWallah’s DRHP dives into a candid and unsettling territory: student safety incidents at its offline centres.

Taking to X, Zerodha highlighted the incidents mentioned in the document.

PhysicsWallah has a unique risk

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Source: Company DRHP pic.twitter.com/1XoLipLq1r

— Markets by Zerodha (@zerodhamarkets) September 8, 2025

Among the incidents disclosed in the DRHP is a 2023 episode where a student allegedly threatened a faculty member with a slipper during a video call. Another case involved a staff member physically pushing a student at an offline centre — an act caught on video and widely circulated online. The company stated that the staff member was terminated following an internal assessment.

In a separate incident, a ceiling fan reportedly fell on a student at a New Delhi centre, leading to an FIR dated June 11, 2024, alleging negligent conduct and endangerment of life. The matter has since been settled, but PhysicsWallah acknowledged that such events could adversely affect its reputation and financial condition.

The surreal risk disclosure sparked reactions across X, with users commenting on the volatility of students and the broader implications for edtech safety.

“Hahaha — ‘the company could collapse if enough students threaten with chappal’,” wrote @lazy_proc. Another X user Suyog (@Yogiwasu) added that students are becoming highly volatile, while a third user Pawan Pandey (@PawanPandeyBgr) pointed out “The biggest risk is not mentioned — low quality teaching."

PhysicsWallah acknowledges risks, but offers no guarantees

In its DRHP, PhysicsWallah stated: “Failure to protect students’ safety and security may negatively impact our reputation and business.” The company added that while it has implemented safeguards to prevent harmful incidents, it cannot guarantee their effectiveness or rule out events beyond its control. The document also noted that safety breaches — including harassment by students or faculty — have occurred in the past and remain a concern for the industry.