Published on: 2025-11-18
Physics Wallah’s IPO has drawn significant attention, reflecting strong market appetite for high-growth edtech listings.
The company, which evolved from a single YouTube channel into a publicly traded education platform, commanded a notable listing premium, signaling robust investor confidence in its growth trajectory and monetization prospects.
For retail investors, the appeal extends beyond potential returns, it also offers exposure to a well-known education brand.
India’s edtech sector has faced significant headwinds, with players like Byju’s and Unacademy grappling with cash burn, layoffs, and valuation write-downs.
Physics Wallah aims to demonstrate that a disciplined, profit-conscious model can still deliver growth. A thorough understanding of the IPO structure, key financial metrics, and sector-specific risks is essential before committing capital.
Physics Wallah (often called PW) is an Indian edtech company focused on affordable coaching for competitive exams like JEE, NEET, UPSC and state-level tests, along with school-level learning.
It started as a YouTube channel by teacher Alakh Pandey in 2016 and later became a full-fledged company in 2020.
From there, the company expanded into a full ecosystem: mobile app, paid courses, offline coaching centres (“PW Pathshala” and “Vidyapeeth”), doubt-solving, test series and even skills-based courses and upskilling products.
The core pitch is simple: exam prep at a much lower price point than legacy coaching brands, but with strong teaching quality and high brand recall, especially across Tier-2 and Tier-3 India.
Here are the key numbers retail investors need to know (rounded for simplicity):
| Metric | Details |
|---|---|
| IPO Type | Fresh Issue + Offer for Sale (OFS) |
| Total Issue Size | ~₹3,480 crore (~$3.19 billion) |
| Fresh Issue | ~₹3,100 crore (for growth funding) |
| OFS | ~₹380 crore (promoters & early investors) |
| Price Band | ₹103–₹109 per share |
| IPO Valuation | ~₹28,073 crore (~$3.19 billion) at upper band |
| Retail Bidding Window | 11–13 November 2025 |
| Anchor Book | Opened 10 November 2025 |
| Listing Date | 18 November 2025 |
| Listing Price | NSE: ~₹145; BSE: ~₹143.10 (≈33% premium vs ₹109 issue price) |
On listing day, shares traded as high as about ₹162, almost 49% above the IPO price, giving PW a market value of roughly $5.2 billion.
On Day 1, Physics Wallah showed exactly what many investors hoped for, a strong listing and follow-up buying:
Issue price: ₹109
Listing price: around ₹145 (NSE), ₹143.10 (BSE) – about 33% premium.
Intraday high: near ₹162, about 49% above the issue price.
From a technical perspective, a few key levels to watch:
| Level | Significance | Notes / Interpretation |
|---|---|---|
| ₹109 | IPO price | Major reference support; staying above keeps sentiment positive for IPO investors |
| ₹130–₹135 | Short-term support | Suggested stop-loss range by some analysts; key zone for medium-term protection |
| ₹145 | Listing price | Reference level; holding above indicates strong post-listing demand |
| ₹160–₹162 | Day 1 high | Immediate resistance; breakout above with volume confirms continuation of listing rally |
Early price action is usually volatile in hot IPOs, so retail investors should expect sharp intraday moves before the chart settles into a trend.
The Physics Wallah IPO saw solid demand across investor classes. On the final day, the issue was subscribed around 1.8 times overall, with bids for more than 33.6 crore shares against an offer size of about 18.6 crore shares.
For a sector that many had written off after the edtech “winter”, this level of interest shows that the market still believes in selective, profitable players. It also signals confidence in the brand and its ability to scale in a hybrid (online + offline) model.
For retail investors, oversubscription at this level typically means lower allotment chances but often supports a positive listing, which we have already seen.
Unlike premium coaching brands that charge very high fees, PW focuses on keeping course fees low and scaling through volume. This helps it tap a much larger base of aspirants in non-metro India while still building decent margins over time.
PW is not a pure online player anymore. It is investing aggressively into offline centres of around 200 new tech-enabled centres are planned over the next three years, funded largely from the ₹3,100 crore fresh issue.
This hybrid model is attractive because:
Parents in India still trust physical centres.
Offline presence improves brand visibility and word-of-mouth.
It de-risks the business from pure online churn and low course completion rates.
Alakh Pandey is not just a founder; he’s a celebrity teacher for millions of students. That “face of the brand” effect is something most listed education companies don’t have.
It creates loyalty and lowers customer acquisition costs because the brand was built organically on YouTube before heavy paid marketing.
Physics Wallah has tried to position itself as the “disciplined” edtech player. In its latest reported financials before the IPO, revenue grew about 50% year-on-year.
The company still reported a loss of around ₹240 crore, but this was a meaningful reduction compared to earlier periods.
In 2022, PW became a unicorn after raising $100 million at around $1.1 billion valuation in its Series A round.
In 2024, it raised another $210 million (about ₹1,754 crore) at a valuation of around $2.8 billion, more than 2.5x higher.
The IPO has now pushed that valuation further up, with the market currently valuing PW around $5.2 billion post listing.
For investors, the key point is that PW is still in investment mode and not fully profit-focused yet, but the path to profitability looks more believable than many high-burn edtech peers.
The fresh issue of about ₹3,100 crore will mainly be used for:
Setting up and upgrading offline centres (PW Pathshala, Vidyapeeth) across India.
Technology investments for better digital platforms, analytics, and personalised learning tools.
Brand-building and marketing, especially in new regions and exam categories.
General corporate purposes, including working capital and possible small acquisitions in content or tech.
For retail investors, this is positive because the majority of the money is going into growth and capacity, not just providing exit liquidity to existing investors. The OFS portion (around ₹380 crore) is meaningful but not dominating the issue.
Physics Wallah’s IPO is significant because it marks the first time an Indian edtech firm has secured SEBI approval to list, offering a much-needed credibility boost to a sector that has spent the last few years repairing balance sheets and investor confidence.
The industry has been under pressure after marquee names like Byju’s burned through capital, struggled with profitability, and faced governance setbacks, leading to layoffs, write-downs, and steep valuation resets across the space.
In contrast, PW’s steady capital raises, tighter cost controls, and now a well-received public listing indicate that markets remain willing to back edtech, provided the business model shows disciplined unit economics and sustainable growth rather than aggressive expansion for its own sake.
For investors, Physics Wallah has effectively become a sector benchmark; meaningful moves in its share price will be interpreted as a read-through on broader sentiment toward India’s education-technology landscape.
1. Cyclical and Exam-Dependent Revenue
Most of PW’s revenue is tied to exam calendars: JEE, NEET, UPSC and other competitive tests. Slowdown in enrolments, changes in exam patterns, or disruption in academic calendars can impact revenue growth.
2. Intense Competition
PW faces competition from:
Offline giants like Allen, Aakash, FIITJEE.
Other edtech players are still fighting for share in online coaching.
Price wars, discounting, and aggressive marketing by rivals can compress margins.
3. Founder and Brand Concentration
A lot of the brand's power is tied to Alakh Pandey himself. If for any reason he steps back from the teaching front or public presence, there is reputational risk. The company will need to slowly build a deeper bench of star teachers and leaders to de-risk this.
4. Regulatory and Policy Risk
Education is a sensitive sector. Any new rules around coaching centres, fee caps, or online education standards, either at central or state level, could impact business economics.
5. High Expectations Embedded in Valuation
At the upper end of the band and after listing gains, the market is already pricing in high growth and improving profitability. If PW delivers slower growth, or losses widen again due to heavy offline expansion, there is downside risk from de-rating.
If you received shares in the IPO, you’re already sitting on solid listing gains. A practical approach is to book some profits and hold the remaining position with a stop near ₹130.
This protects your capital while keeping you exposed if the stock continues to build momentum over the medium term.
If you didn’t get an allotment and are looking to enter in the secondary market, avoid buying into sharp intraday rallies without a defined plan. Instead, watch for pullbacks towards ₹135–₹145, ideally with price stabilising and selling volume easing.
Treat this as a growth-driven, sector-linked investment that needs monitoring, focus on quarterly earnings, expansion of offline centres, and how quickly the company moves toward profitability.
Physics Wallah fits investors targeting a 3–5 year outlook, especially those expecting steady growth in organised test preparation, continued expansion of hybrid learning models, and resilience from strong founder-led education brands.
Short-term traders can still take advantage of price swings, but the setup demands disciplined stops and controlled position sizes as volatility remains elevated.
₹103–₹109 per share. The issue was priced at ₹109 after strong investor demand.
The offer ran from 11–13 November 2025, with anchor bidding on 10 November. Shares listed on 18 November 2025 on both NSE and BSE.
The company raised about ₹3,480 crore in total, roughly ₹3,100 crore via fresh issuance and ₹380 crore through an offer for sale.
It opened around ₹145 on NSE and ₹143.10 on BSE, about 33% above issue price, and traded up to ~₹162 at one point.
Not yet, but losses are narrowing. Revenue grew about 50% year-on-year, and annual losses have come down to roughly ₹240 crore as the company scales its offline and tech operations.
The business depends heavily on exam cycles, faces strong competition, carries brand-concentration risk, and trades at a valuation that assumes continued high growth. Education regulations can also affect performance.
It offers exposure to a large test-prep market and a strong value-focused brand, which can pay off over a 3–5 year horizon. Still, it remains a volatile growth stock, so position sizing and disciplined monitoring are essential.
Physics Wallah’s IPO is a landmark for India’s edtech space, the first major platform in the sector to win SEBI’s approval and then deliver a strong listing premium.
The company combines a powerful founder brand, scalable hybrid model, and a clear plan for using IPO funds, all of which the market is rewarding with a rich valuation.
For retail investors, this is an exciting story, but not one to buy blindly at any price. Treat the ₹109 issue price, ₹130-₹135 support band and ₹160-₹162 resistance zone as key reference levels. More importantly, watch how enrolments, offline expansion and profitability evolve over the next 3-4 quarters.
If PW executes well, it can become a core education-tech holding in a long-term portfolio; if not, rich valuations can correct fast. The real test for this hot IPO starts now, in the listed market.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
