PhysicsWallah IPO Listing: Shares list at a 36% premium to its IPO price of ₹109

Shares of edtech platform PhysicsWallah delivered strong listing gains of 36% when they debuted on Tuesday, November 18.

The stock listed at ₹145 on the NSE, compared with its issue price of ₹109 per share. On the BSE, the stock made a 31% premium debut at ₹143.10.

The listing was well above grey market expectation, where shares of PhysicsWallah were commanding a 13% premium today.

The grey market is an informal ecosystem where shares trade before IPO allotment and continue until listing day. Many investors track the GMP to gauge potential listing prices.

At the upper end of the price band, PhysicsWallah's post-issue market capitalisation is estimated at ₹31,169 crore.

The edtech firm's ₹3,480-crore IPO was subscribed nearly two times during the November 11–13 issue window. The maiden public issue received bids for 33.62 crore shares against an offer size of 18.62 crore shares.

Retail investors fully subscribed their quota at 106%, while Non-Institutional Investors (NIIs) subscribed 48% of their portion. Qualified Institutional Buyers (QIBs) subscribed 2.7 times their reserved allocation.

The company had earlier raised ₹1,562.85 crore from anchor investors, including Capital Group, Goldman Sachs, Fidelity, Abu Dhabi Investment Council, and PineBridge.

The IPO consists of a ₹3,100-crore fresh issue and a ₹380-crore offer for sale (OFS). About 75% of the issue is reserved for QIBs, while 10% is allocated to retail investors.

Promoter holding will fall to 72.3%, from 81.6%, post-listing.

Key investors include WestBridge Capital, GSV Ventures, Hornbill Capital, and Lightspeed Venture Partners.

Founded in 2016 by Alakh Pandey, a physics teacher and college dropout who began uploading free lessons on YouTube, PhysicsWallah shot to prominence during the Covid-19 pandemic. The company now operates 303 offline centres across 152 cities in India and the Middle East.

Kotak Capital, JPMorgan India, Goldman Sachs (India), and Axis Capital were the book-running lead managers to the issue.