PhysicsWallah had a successful debut on the stock market on Tuesday, surpassing expectations set by the grey market premium (GMP) prior to its listing.
The initial trading prices were Rs 145 on the NSE and Rs 143.10 on the BSE, offering investors a premium of 33% over the issue price of Rs 109. This unexpected opening surprised observers as the GMP projections had indicated a marginal increase before the listing.
Following its market entry, PhysicsWallah shares continued to rise and were trading at 151.15, showing an increase of nearly 6% as of 11:28 am.
PhysicsWallah, established by Alakh Pandey, stands as one of India’s most renowned educational brands. Initially a YouTube channel, it has expanded into a comprehensive education platform providing both online and offline coaching for JEE, NEET, UPSC, and various state-level exams. The company boasts 13.7 million YouTube subscribers and manages 303 offline and hybrid centers nationwide.
The PhysicsWallah IPO received 1.92 times oversubscription in total, with the retail category at 1.14 times, qualified institutional buyers (QIB) at 2.86 times, and non-institutional investors (NII) at 0.51 times by November 13.
While the subscription figures were moderate, analysts noted the strong interest from institutional investors, demonstrating confidence in the company’s future prospects.
The IPO was priced between Rs 103 and Rs 109 per share, with a lot size of 137 shares, requiring a minimum investment of Rs 14,933. Non-institutional investors (NIIs) had a minimum investment of Rs 2,09,062, and for bid non-institutional investors (bNIIs), it was Rs 10,00,511.
Market experts attribute the strong demand to the company’s strong brand, loyal student base, cost-effective offerings, and hybrid learning approach. PhysicsWallah stands out as one of the few profitable edtech firms in India, providing additional assurance to investors.
DECIDING TO HOLD OR SELL?
According to Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, the robust listing reflects the company’s solid position in the test-prep sector and its rapid offline network expansion.
Key strengths highlighted include:
– A dedicated student community
– Scalable online content platform
– Expeditious offline growth through PW Pathshala centers