The initial public offering (IPO) of PhysicsWallah has seen limited investor enthusiasm on its second day of public bidding, November 12. The Rs 3,480-crore IPO has been subscribed only 9% so far, reflecting cautious sentiment among retail and institutional investors.

Subscription Details (as of Day 2, 11 AM):

• Shares Bid: 1.75 crore
• Offer Size: 18.62 crore shares
• Retail Investors: Subscribed 44% of their allocated portion
• Non-Institutional Investors (NII): 3% subscribed
• Qualified Institutional Buyers (QIB): Minimal activity to date

Grey Market Premium (GMP):

• Current unlisted shares trading at 1.38% premium over IPO price
• This is lower than 3.67% GMP during the weekend and 4.59% last week
• Signals muted demand compared to initial hype

IPO Structure:

• Fresh Issue: Rs 3,100 crore
• Offer for Sale (OFS): Rs 380 crore
• Price Band: Rs 103–109 per share
• Minimum Investment: 137 shares (Rs 14,933 at upper band)
• Target Valuation: Over Rs 31,500 crore at upper price band
• IPO Open: November 11–13
• Allotment Date: Likely November 14
• Listing Date: Scheduled for November 18

Brokerage Views:

SBI Securities – Neutral

• IPO fairly valued at upper band (EV/Sales 9.7x)
• Company among top 5 edtech firms by revenue
• Losses widened from Rs 81 crore in FY23 to Rs 216 crore in FY25
• Recommendation: Monitor post-listing performance

Angel One – Neutral

• Loss-making with no comparable listed peers
• Strong revenue growth and brand recall, but profitability constrained
• Risks: Rapid offline expansion, continued losses, execution challenges

InCred Equities – Positive

• Recommends subscription based on medium- to long-term growth potential
• Strong online and offline business expansion
• Risks: Brand reputation, promoter dependence, high faculty attrition
• Listing will test whether India’s edtech sector can translate growth into profit-backed credibility

Summary:

While PhysicsWallah has shown robust revenue growth and high brand visibility, profitability concerns and muted institutional participation are weighing on investor sentiment. The IPO’s performance post-listing will indicate whether investors value long-term growth prospects over near-term losses.