PhysicsWallah IPO Day 2: GMP, price band, subscription status, review, other key details. Apply or not?

PhysicsWallah IPO: The initial public offering (IPO) of edtech company PhysicsWallah Ltd entered its second day of bidding on Wednesday. PhysicsWallah IPO has been witnessing lukewarm demand from investors so far.

PhysicsWallah IPO opened for subscription on Tuesday, November 11, and will close on Thursday, November 13. The IPO allotment date is likely November 14, and the IPO listing date is November 18. PhysicsWallah shares will be on both the stock exchanges, BSE and NSE.

The company aims to raise ₹3,480 crore from the book-building issue, which is a combination of fresh issue of 28.44 crore equity shares worth ₹3,100 crore, and an offer-for-sale (OFS) component of 3.49 crore equity shares aggregating to ₹380 crore. PhysicsWallah IPO price band is set at ₹103 to ₹109 per share.

PhysicsWallah IPO lot size for an application is 137 shares, and the minimum investment amount required by retail investors is ₹14,933.

Kotak Mahindra Capital Co. Ltd. is the book running lead manager and MUFG Intime India Pvt. Ltd. is the PhysicsWallah IPO registrar.

PhysicsWallah IPO Subscription Status

PhysicsWallah IPO has been subscribed 13% so far, as per BSE data as at 17:00 IST on Wednesday, the second day of the bidding process. The public issue is booked 58% in the Retail Individual Investors (RIIs) category, and 6% in the Non Institutional Investors (NII) segment so far. The Qualified Institutional Buyers (QIBs) are yet to bid for the issue.

Catch PhysicsWallah IPO Day 2 LIVE Updates here

PhysicsWallah IPO GMP Today

PhysicsWallah shares are showing a muted trend in the unlisted market, with a modest grey market premium (GMP). PhysicsWallah IPO GMP today is ₹3 per share, according to market experts. This indicates that in the grey market, PhysicsWallah shares are trading higher by ₹3 apiece than their issue price.

PhysicsWallah IPO GMP today signals that the stock is available at ₹112 apiece in the grey market, a premium of 2.75% to the IPO price of ₹109 per share.

PhysicsWallah IPO Review: Should you subscribe?

PhysicsWallah reported revenue growth of 160.7% in FY24 and 48.7% in FY25, though it remains loss making due to substantial investments in offline expansion and new business verticals. Hence, traditional valuation metrics such as P/E may not provide a fair assessment.

“On valuation at the upper price band of ₹109, the issue is asking for a Market cap of ₹31,527 crore. Based on FY2025 actuals, the company is valued at approx 10.4x market-cap-to-sales, and at around ~8.8x FY2026 annualised revenue, which appears aggressively priced. We believe open-access model, strong conversion funnel from free to paid users, and diversified offerings across 13 education categories and 7 languages offer significant long-term growth potential, given the vast ~30 crore addressable student base, of which only ~1.5% has been monetized so far,” said Mehta Equities.

Considering its leadership position and large untapped market, the brokerage firm recommends only risk-tolerant investors to subscribe to the PhysicsWallah IPO with a long-term perspective only.

According to Deven Choksey Research, PhysicsWallah IPO is priced at a P/Revenue multiple of 7.5x on TTM basis, reflecting its rapid growth in subscriptions and user base.

“Despite historical losses and governance concerns, the company’s strong brand, community-driven model, and expansion strategy support subscription for listing gains. The fresh issue proceeds will fund inorganic growth and technology enhancements, aligning with sector tailwinds like hybrid learning and digital penetration. We recommend ‘Subscribe’,” said the brokerage firm.

Read all IPO news here

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.