PhysicsWallah IPO Day 2 Highlights: Issue booked 13%; GMP sees sharp drop. Check review, subscriptions. Apply or not?

PhysicsWallah IPO was booked 13% on the second day of the bidding process. Here's how different quotas were subscribed:

QIB: NIL

NII:6%

Retail: 58%

Employee: 1.77x

Among the top five education companies in India by revenue, the company is the largest in terms of student community, with its main YouTube channel, “Physics Wallah – Alakh Pandey,” having 13.7 million subscribers as of July 15, 2025.

Its overall YouTube community had 98.80 million subscribers as of June 30, 2025, growing at a CAGR of 41.80% between Fiscals 2023 and 2025.

The company also has a significant offline presence among education companies in India in terms of offline revenue. It ranks among the top five education companies by revenue and is one of the fastest-growing players in the sector during Fiscals 2023 to 2025.

PhysicsWallah IPO Day 2 LIVE: PhysicsWallah IPO subscription status was 12% on day 2. The retail portion was subscribed 57%, and NII portion has been booked 5%, Qualified Institutional Buyers (QIBs) portion is yet to receive bids. The employee portion has been subscribed 1.75x.

The company has received bids for 2,30,42,852 shares against 18,62,04,143 shares on offer, at 16:00 IST, according to data on BSE.

1. Expansion of offline and hybrid centers and related lease payments.
2. Investment in technology infrastructure and marketing initiatives.
3. Funding for acquisitions, inorganic growth, and general corporate purposes

1. Online Learning Platform: Physics Wallah’s core business began with its online education platform, offering live and recorded video lectures for competitive exams such as JEE, NEET, and CUET, along with board exam preparation.
2. Offline and Hybrid Coaching Centres: Expanding beyond digital classes, Physics Wallah launched offline and hybrid learning centres under brands like Vidyapeeth and Pathshala. These centres provide traditional classroom teaching supported by digital learning resources.
3. Study Materials and Skill-Based Courses: PW also produces a wide range of study materials, including printed books, e-books, and comprehensive test series that complement its courses.

PhysicsWallah IPO Day 2 LIVE: According to Lakshmishree Investment & Securities, while risks such as operational complexity from rapid offline expansion and dependence on the founder's personal brand exist, PW's established brand trust, low-cost structure, and key role in making education accessible across Tier-2 and Tier-3 cities provide a solid foundation.

“We recommend a ‘SUBSCRIBE’ rating for investors seeking exposure to a high-growth, marketleading platform in the Indian education sector,” said the brokerage.

PhysicsWallah IPO Day 2 LIVE:

1. Subsidiaries Xylem, Knowledge planet and Utkarsh classes are yet to turn profitable.
2. % Number of unique transacting users (online channel) has declined in FY25 in NEET, JEE and other government exams.

PhysicsWallah IPO Day 2 LIVE: Bhavik Joshi, Business Head, INVasset PMS, said that PhysicsWallah IPO marks a defining moment for India’s edtech sector, symbolizing the transition from digital virality to institutional scale. The company’s evolution—from a single YouTube channel to a multi-format learning ecosystem spanning over 300 offline and hybrid centers—underscores its deep student connect and content credibility. Revenue has expanded sharply from ₹772 crore in FY23 to over ₹3,000 crore in FY25, highlighting strong top-line momentum and brand stickiness in a crowded market.

However, profitability remains elusive, with cumulative losses exceeding ₹1,400 crore across FY23–FY25. The negative earnings base and a steep valuation multiple make this IPO a play on long-term execution rather than immediate returns.

PhysicsWallah IPO Day 2 LIVE: 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

PhysicsWallah IPO Day 2 LIVE: Physics Wallah’s business model stitches together three engines - a communityled distribution funnel, a modular AI-enabled technology stack, and a large, continually refreshed content library to sell bundled ‘Batches’ across online, offline and hybrid channels.

A significant portion of discovery and CAC reduction comes from free, high-reach content on its 200+ YouTube channels and community events that feed paid enrolments. The company leverages a flexible, scalable LMS and an ‘Alakh AI’ suite (AI Guru, Smart Doubt Engine, AI Grader, AI Sahayak, TeacherX) to lower marginal teaching hours and speed feedback/doubts, creating operating leverage as enrolments scale.

PhysicsWallah IPO Day 2 LIVE: Successfully blends a massive, low-cost online student base with high-ARPU offline centres (Vidyapeeth), creating a highly capitalefficient and scalable ecosystem.

PhysicsWallah IPO Day 2 LIVE: InCred Equities believes that the company has demonstrated significant growth over the years in both online and offline business verticals. At the upper end of the price band, the initial public offer (IPO) is valued at EV/sales multiple of 10.7x based on post-issue capital. 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.

“As the business scales up, we expect profitability over the medium- to long-term,” said InCred Equities.

PhysicsWallah IPO Day 2 LIVE: The initial public offering includes a fresh issuance of equity shares valued at ₹3,100 crore, along with an Offer For Sale (OFS) of shares totaling up to ₹380 crore by the promoters.

Both of the promoters, Alakh Pandey and Prateek Boob, will each sell shares worth ₹190 crore through the OFS. Currently, each holds a 40.31 percent stake in the company.

PhysicsWallah IPO Day 2 LIVE: 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 2 LIVE: 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 2 LIVE: PhysicsWallah IPO GMP today is ₹1.5. 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 ₹110.5 apiece, which is 1.38% higher than the IPO price of ₹109.

Analyzing the grey market trends from the last 8 sessions, today's IPO GMP shows a decline and is anticipated to decrease further. Experts indicate that the lowest GMP is ₹1.50, 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.