#PhysicswallahIPO #IPOAlert #DalalStreet #EdTech #InitialPublicOffering #StockMarketIndia #WestBridgeCapital #AlakhPandey #PrateekBoob #IndianEconomy #Physicswallah
Chandigarh: The digital education landscape in India is set for a significant upheaval as Physicswallah, the popular online learning platform, prepares to launch its massive Initial Public Offering (IPO) next week. The Noida-based company, backed by prominent investors including WestBridge Capital, Hornbill Capital, and GSV Ventures, has officially filed its Red Herring Prospectus (RHP) with the Registrar of Companies for a public issue aiming to raise a colossal Rs 3,480 crore.
The highly anticipated IPO is scheduled to hit Dalal Street on November 11, marking a pivotal moment for the ed-tech sector. The public subscription window will remain open for investors until November 13.
🗓️ IPO Schedule and Structure
Before the main event, the one-day IPO anchor book, reserved for institutional investors, will be launched on November 10. Following the closure of the public issue, the company will finalize the IPO share allotment by November 14. A few days later, the Physicswallah shares are expected to begin trading on the BSE and NSE, with the listing date set for November 18.
The Rs 3,480-crore IPO primarily consists of a fresh issue of shares worth Rs 3,100 crore. Additionally, there will be an offer-for-sale (OFS) component, where the company’s promoters, Alakh Pandey and Prateek Boob, will be offloading shares valued at Rs 380 crore.
📈 Promoter Holdings and Investor Base
Physicswallah’s founders, Alakh Pandey and Prateek Boob, currently hold a substantial joint stake of 80.62 percent in the company, highlighting their strong commitment. The remaining 19.38 percent is held by public shareholders, which includes its institutional backers. Key investors and their respective stakes are WestBridge AIF (6.40 percent), Hornbill Capital Partner (4.41 percent), GSV Ventures Fund (2.85 percent), and Lightspeed Opportunity Fund (1.79 percent). The successful IPO will likely see a significant redistribution of this shareholding.
💰 Strategic Utilization of IPO Proceeds
Physicswallah, which asserts its position among the top five Indian education companies by revenue, has detailed an extensive plan for deploying the funds raised through the IPO. A significant portion is allocated to expanding and fortifying its physical and digital infrastructure.
Key planned expenditures include:
- Rs 460.5 crore for fit-outs of new offline and hybrid centers.
- Rs 548.3 crore for lease payments for existing identified offline and hybrid centers.
- Rs 47.2 crore dedicated to investment in its subsidiary, Xylem Learning, for its expenditure.
- Rs 28 crore for lease payments for Utkarsh Classes & Edutech’s existing identified offline centers, another subsidiary.
- Rs 26.5 crore for acquiring additional shareholding in Utkarsh Classes & Edutech.
- Rs 200.1 crore earmarked for server and cloud-related infrastructure costs.
- A substantial Rs 710 crore will be channeled into marketing initiatives to boost market presence.
- The remaining capital will be utilized for inorganic growth opportunities through unidentified acquisitions and for general corporate purposes.
📝 Company Profile and Financial Overview
Founded in 2020 by Alakh Pandey and Prateek Boob, Physicswallah quickly rose to prominence by offering affordable and quality test preparation courses. The platform focuses on major competitive examinations like the Joint Entrance Examinations (JEE), National Eligibility cum Entrance Test (NEET), and Union Public Service Commission (UPSC), along with various upskilling courses.
While the company is expanding rapidly, its financial statements reflect the high investment costs associated with aggressive growth. For the quarter ended June 2025, Physicswallah reported a loss of Rs 152 crore, widening from the Rs 102.2 crore loss in the corresponding quarter of the previous fiscal year. However, revenue during the same period showed robust growth, climbing by 33.3 percent to Rs 847 crore, up from Rs 635.2 crore.
Looking at the full fiscal year 2025, the company managed to narrow its loss significantly, reporting a loss of Rs 225.8 crore, a considerable improvement from the staggering loss of Rs 1,263.9 crore in the previous fiscal. Revenue for the fiscal year witnessed an impressive 48.7 percent jump, reaching Rs 2,886.6 crore, compared to Rs 1,940.7 crore in the preceding year.
The much-anticipated IPO is being managed by a consortium of book-running lead managers, including Kotak Mahindra Capital Company, JP Morgan India, Goldman Sachs (India) Securities, and Axis Capital. The successful listing of Physicswallah is expected to be a major indicator of investor confidence in the future of hybrid and digital learning in India.
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