PhysicsWallah IPO Day 2: Subscription Status, GMP Analysis & Investment Guide

The PhysicsWallah IPO has entered its second day of bidding with a subdued response from investors, recording only 8-10% overall subscription as of November 12, 2025. Despite being one of India’s most recognized edtech brands, the public issue has witnessed muted demand across all investor categories, raising questions about market sentiment and valuation concerns in the education technology sector.

This comprehensive analysis covers the latest subscription numbers, grey market premium trends, detailed company fundamentals, expert recommendations, and everything investors need to know before making their investment decision on the PhysicsWallah IPO.

PhysicsWallah IPO Subscription Status

The PhysicsWallah IPO has received a lukewarm response on Day 2, with the overall subscription standing at approximately 8-10% as of November 11, 2025, at 5:00 PM. The retail investor segment has shown relatively better interest with 36-49% subscription, while institutional investors remain notably absent from the bidding process.

The absence of QIB participation is particularly concerning as institutional investors typically drive momentum in large IPOs. The employee category has been the only segment showing oversubscription, indicating strong internal confidence in the company’s future prospects. For detailed analysis on the complete IPO guide, check out our comprehensive PhysicsWallah IPO 2025 Complete Guide.

Grey Market Premium Analysis

The PhysicsWallah IPO grey market premium (GMP) has witnessed a declining trend since the announcement, currently hovering around ₹3-4 per share, which translates to approximately 2.75-3.67% premium over the upper price band of ₹109. This subdued GMP reflects cautious investor sentiment and concerns about the company’s premium valuation in the current market environment.

The declining GMP trajectory is noteworthy, as it dropped from ₹7 in early November to the current ₹3-4 level. This downward trend suggests weakening market confidence, potentially influenced by broader edtech sector challenges, premium valuations, and absence of strong institutional interest during the bidding period.

IPO Details and Key Dates

The PhysicsWallah IPO is a mainboard offering aimed at raising ₹3,480 crores through a combination of fresh issue and offer for sale. The issue is priced in a band of ₹103 to ₹109 per equity share, making it accessible for retail investors with a minimum investment of approximately ₹14,933 for one lot of 137 shares.

Key IPO Information

Book Running Lead Managers

The PhysicsWallah IPO is managed by a consortium of premier investment banks including Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited, Goldman Sachs (India) Securities Private Limited, and Axis Capital Limited. KFin Technologies Limited serves as the registrar for the issue, ensuring smooth processing of applications and allotments.

Company Overview and Business Model

PhysicsWallah has emerged as one of India’s leading education technology companies, offering comprehensive test preparation and upskilling courses through a unique blend of online, offline, and hybrid learning models. Founded by Alakh Pandey in 2016 as a YouTube teaching channel, the company was formally incorporated in June 2020 and has since scaled to become a prominent player in the competitive edtech landscape.

The company’s multi-channel delivery approach sets it apart from pure-play online competitors. PhysicsWallah operates through digital platforms including websites and mobile applications with 64.50 million cumulative app downloads, tech-enabled offline centers with live in-person lectures, and hybrid centers that combine live online instruction with in-person academic support and doubt-solving sessions across 109 cities.

Course Offerings and Market Position

PhysicsWallah currently offers courses across 13 education categories including JEE (Joint Entrance Examination), NEET (National Eligibility cum Entrance Test), civil services preparation, GATE (Graduate Aptitude Test in Engineering), upskilling programs, and various other competitive examinations. The company boasts an impressive social media presence with 119.27 million followers across 888 social media channels, demonstrating strong brand recall and organic reach.

The company’s community-driven model and affordable pricing strategy have helped it build a loyal student base, particularly among tier-2 and tier-3 city students. Unlike many competitors who focus heavily on marketing spend, PhysicsWallah maintains marketing expenses at approximately 10% of revenue compared to the industry average of 18%, showcasing efficient customer acquisition.

Financial Performance Highlights

PhysicsWallah has demonstrated robust revenue growth across all business segments in the fiscal year ended March 2025. The company’s diversified revenue streams and expanding offline presence have contributed to strong top-line performance, although it continues to operate at a loss like most growth-stage edtech companies.

Revenue Breakdown (FY 2025)

The company’s online business growth was supported by an increase in unique transacting users from 3.40 million to 4.13 million year-on-year. Offline expansion has been particularly aggressive, with the center count increasing from 126 to 198 locations, resulting in student enrolments rising from 2.3 lakh to 3.3 lakh students.

PhysicsWallah is being valued at a Price-to-Revenue multiple of 7.5x on a trailing twelve-month basis, which some analysts consider premium given the company’s loss-making status and evolving business model. Investors interested in understanding market dynamics can also explore our analysis on Mutual Fund AUM Record October 2025.

Use of IPO Proceeds

PhysicsWallah has outlined a detailed plan for utilizing the ₹3,100 crore fresh issue proceeds to accelerate growth, expand infrastructure, enhance technology capabilities, and strengthen its market position. The company will not receive any proceeds from the OFS component, which will directly benefit the selling shareholders including founders Alakh Pandey and Prateek Boob.

Planned Fund Allocation

• Marketing and Brand Building: ₹710 crores will be allocated for marketing initiatives to expand brand presence and student outreach across India, the highest allocation among all categories.
• Lease Payments for New Centers: ₹548.3 crores will cover lease payments for already identified offline and hybrid centers to support physical infrastructure expansion.
• Setting Up New Centers: ₹460.6 crores will be utilized to establish new offline and hybrid learning centers across various cities to strengthen geographical presence.
• Technology Infrastructure: ₹200.1 crores will be invested in server and cloud infrastructure to strengthen digital backbone and ensure smoother delivery of online and hybrid offerings.
• Subsidiary Investment (Xylem Learning): ₹47.2 crores will be invested in the subsidiary to support its growth and operational requirements.
• Lease Payments for Utkarsh Classes: ₹33.7 crores will cover lease payments for existing offline centers of acquired subsidiary Utkarsh Classes & Edutech.
• Acquisition of Additional Shareholding: ₹26.5 crores will be spent on acquiring additional shareholding in existing subsidiaries to consolidate ownership.
• General Corporate Purposes: Remaining proceeds will be used for working capital and other corporate purposes as approved by the board.

The significant allocation toward marketing (₹710 crores) indicates the company’s intent to aggressively build brand awareness and compete with established players. The combined investment of over ₹1,000 crores in physical infrastructure demonstrates PhysicsWallah’s commitment to its hybrid model, distinguishing it from purely digital competitors.

Expert Recommendations

Brokerage firms and market analysts have expressed mixed views on the PhysicsWallah IPO, with recommendations ranging from “Subscribe” to “Neutral” depending on investment horizon and risk appetite. The divergence in opinions reflects the complex evaluation of growth potential versus valuation concerns in the edtech sector.

Investors should consider their investment objectives and risk tolerance before applying. Those seeking short-term listing gains may find opportunities given the institutional interest expected on the final day, while long-term investors should evaluate the company’s ability to achieve profitability and maintain growth momentum in a competitive landscape.

How to Apply for PhysicsWallah IPO

Applying for the PhysicsWallah IPO is a straightforward process that can be completed through your trading and demat account provider. Retail investors can apply for a minimum of one lot (137 shares) and a maximum of up to ₹2 lakhs in the retail category.

Step-by-Step Application Process

1. Ensure Demat Account is Active: You need an active demat and trading account to apply for the IPO. Make sure your account is KYC-compliant and has sufficient funds.
2. Log into Your Trading Platform: Access your broker’s trading platform through web or mobile app (Zerodha, Dhan, Groww, or any other broker).
3. Navigate to IPO Section: Find the IPO application section in your trading platform and select “PhysicsWallah IPO.”
4. Enter Application Details: Enter the number of lots you wish to apply for, select the price band (₹109 recommended for higher allotment chances), and provide UPI ID for payment blocking.
5. Confirm UPI Mandate: Approve the UPI mandate request sent to your linked UPI app to block the application amount.
6. Submit Application: Review all details and submit your application before the issue closing date (November 13, 2025).

Retail investors should apply on the final day (November 13, 2025) to get a better sense of overall subscription trends. If the issue remains undersubscribed, chances of full allotment increase significantly, while oversubscribed issues follow a lottery-based allotment system. For more insights on recent IPO listings, read our coverage on Tata Motors Commercial Vehicle Listing.

For complete details about the PhysicsWallah IPO, including risk factors and financial disclosures, please refer to the official DRHP filed with SEBI.