PhysicsWallah IPO Day 1 LIVE Updates: Issue booked 8% so far; GMP falls to 2%, check review. Should you apply?

The ₹3,480-crore initial public offering (IPO) of Physics Wallah opened for subscription on November 11 and received a tepid response from investors on the first day. The issue was subscribed 0.08 times, with bids coming in for 1.34 crore shares against 17.58 crore shares offered.

Domestic brokerage firm InCred Equities sees Physics Wallah as a potential edtech disruptor, noting that while valuations appear stretched at an EV/sales multiple of 10.7x based on post-issue capital, the company’s strong moat and rapid expansion position it well for long-term profitability.

PhysicsWallah IPO Day 1 LIVE Updates: According to Gaurav Garg, Lemonn Markets Desk, PhysicsWallah has built an extraordinary brand in affordable education, combining online scale with offline credibility. However, from an investor standpoint, the IPO appears fairly valued to slightly expensive given its limited profit track record. For first-time investors, it would be prudent to wait and watch, the story remains attractive, but sustainable profitability will be key before taking long-term exposure.

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PhysicsWallah IPO Day 1 LIVE Updates:

“At upper price band of ₹109, the issue is valued at EV/Sales multiple of 9.7x based on the post issue capital, which seems fairly valued. We maintain a NEUTRAL view on the issue and would like to monitor the performance of the company post listing,” said SBI Securities.

PhysicsWallah IPO Day 1 LIVE Updates: As of Jun’25, the company offers courses in 13 education categories (up from 6 in FY23). PW provides preparation courses for engineering and medical entrance exams (JEE and NEET) through online, offline and hybrid channels. Additionally, the company offers courses for other entrance exams (like GATE, CUET, and CAT) and public administration jobs.

PWs "Skills" category includes upskilling courses in data science, banking, finance and software development. Following a strategic approach, the company opens centers in areas with high student demand and has acquired companies like Xylem and Utkarsh Classes to bolster its offerings in such areas.

PhysicsWallah IPO Day 1 LIVE Updates: In fiscal 2024, the five largest organised players by reported revenue were Allen Career Institute (Rs32,447.2m), Aakash Educational Services (Rs23,858.2m), Physics Wallah (Rs19,407.1m), Unacademy (Rs8,398.0m) and Veranda Learning (Rs3,617.3m).

PhysicsWallah IPO Day 1 LIVE Updates: Operational revenue has four funnels, Online (app + web), tech-enabled offline centres, hybrid (two-teacher model), and others (YouTube advertisement revenue + product sales/distribution) feed a single product set (batches, subscriptions, question banks, books) and share the same/similar content assets.

PhysicsWallah IPO Day 1 LIVE Updates: AI Guru is answering roughly 2.82m questions per month for JEE/NEET students as of 30 Jun 2025, dramatically reducing the need for 1:1 tutor time for routine doubts. AI Grader handled 304,202 written responses between 1 Aug 2024 and 30 Jun 2025, speeding feedback cycles and lowering marking costs while maintaining accuracy via human crosschecks. The Smart Doubt Engine summarises live questions and surfaces prompts to teachers, while tech shifts operational work from humans to software.

PhysicsWallah IPO Day 1 LIVE Updates: Anand Rathi Research believes that at the upper price band, the company is valued at 10.8x FY25 P / S_{0} implying a post-issue market capitalization of 3,11,699 million. They aim to grow their student community by offering engaging free content across platforms and converting users into paying customers through better technology, targeted marketing, and expert-led high-quality content. The company plans to broaden its course portfolio and launch new Education Categories in multiple Indian languages to reach a wider student audience.

" Considering these factors, the IPO appears fully priced and is rated "Subscribe - Long Term," said the brokerage.

PhysicsWallah IPO Day 1 LIVE Updates: Financially, the company reported an average collection per user of ₹3,930.55 as of June 30, 2025, supported by a broad portfolio that encompasses courses across 13 education categories. To support this scale, the organization maintains substantial human capital, comprising 6,267 faculty members and 18,028 total employees, while also contributing to educational content through the publication of 4,382 books.

PhysicsWallah IPO Day 1 LIVE Updates: The Indian education market is a dominant global sector, valued at ₹15-16 trillion in Fiscal 2025 and is projected to expand significantly at a CAGR of approximately 10% to reach ₹24-26 trillion by Fiscal 2030. This growth is underpinned by substantial infrastructural expansion, evidenced by the increase in universitiesfrom 903 to 1,168 and colleges from 39,050 to 45,473 between Fiscal 2018 and Fiscal 2022.

PhysicsWallah IPO Day 1 LIVE Updates: Key risks include continued losses and uncertain profitability, heavy dependence on student enrolments and key faculty, and execution challenges from rapid offline expansion. Rising competition and high operating costs further add to profitability and scalability risks.

PhysicsWallah IPO Day 1 LIVE Updates: Angel One said that Physics Wallah Ltd’s financials cannot be compared on a P/E basis asit remainsloss-making, with no listed like-to-like peers in the Indian EdTech 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,” said the brokerage house.

PhysicsWallah IPO Day 1 LIVE Updates: PhysicsWallah provides preparation courses for competitive exams such as JEE, NEET, GATE, and UPSC, as well as upskilling programs, available through online platforms (YouTube, website, and apps), tech-enabled offline centers, and hybrid centers that blend online teaching with in-person assistance.

As of July 15, 2025, its primary YouTube channel, Physics Wallah-Alakh Pandey, boasted approximately 13.7 million subscribers, while its total YouTube network reached 98.8 million subscribers by June 30, 2025, achieving a compound annual growth rate (CAGR) of 41.8% from FY23 to FY25. In addition to its robust digital presence, PhysicsWallah has established a considerable offline presence.

PhysicsWallah IPO Day 1 LIVE Updates: From the proceeds of the fresh issue, PhysicsWallah plans to allocate ₹460.5 crore for the development of new offline and hybrid centres, while ₹548.3 crore will be used for lease payments related to existing centres.

The company intends to invest ₹47.2 crore in its subsidiary Xylem Learning, which includes ₹31.6 crore earmarked for establishing new centres and ₹15.5 crore for lease payments and hostel facilities.

An additional ₹33.7 crore is set aside for Utkarsh Classes & Edutech to cover lease payments for its centres.

Moreover, ₹200.1 crore will be dedicated to enhancing server and cloud infrastructure, ₹710 crore for marketing efforts, and ₹26.5 crore for increasing its stake in Utkarsh Classes.

PhysicsWallah IPO Day 1 LIVE Updates: Tentatively, PhysicsWallah IPO basis of allotment of shares will be finalised on Friday, November 14, and the company will initiate refunds on Monday, November 17, while the shares will be credited to the demat account of allottees on the same day following refund. PhysicsWallah share price is likely to be listed on BSE and NSE on Tuesday, November 18.

PhysicsWallah IPO Day 1 LIVE Updates: PhysicsWallah IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. The employees have been reserved up to ₹70 million worth shares.

PhysicsWallah IPO Day 1 LIVE Updates: PhysicsWallah announced on Monday that it has secured ₹1,563 crore from anchor investors, just one day prior to the launch of its initial public offering (IPO). This marks the first significant IPO from an entirely edtech-focused company in the nation.

The anchor book included contributions from 57 funds, such as ICICI Prudential Mutual Fund (MF), Kotak Mahindra MF, Nippon India MF, Aditya Birla Sun Life, Motilal Oswal MF, Tata MF, and DSP MF, along with notable global investors like Goldman Sachs, Fidelity, and Templeton, according to a notice posted on BSE's website.

According to the notice, the company distributed 14.33 crore equity shares at an anchor investor price of ₹109 per share, resulting in a total fundraising of ₹1,562.85 crore.

PhysicsWallah IPO Day 1 LIVE Updates: PhysicsWallah IPO GMP today is ₹3. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of PhysicsWallah share price was indicated at ₹112 apiece, which is 2.75% higher than the IPO price of ₹109.

Analyzing the grey market trends from the last seven sessions, today's IPO GMP shows a decline and is anticipated to decrease further. Experts indicate that the lowest GMP is ₹3.00, whereas the highest reaches ₹9.00.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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.