PhysicsWallah seeks $3.5B valuation post IPO, sets price band at Rs 103–109 per share

Edtech firm PhysicsWallah has fixed its IPO price band at Rs 103–109 per share, seeking a valuation exceeding Rs 31,500 crore ($3.5 billion).

The company’s Rs 3,480-crore public issue will open for subscription on November 11 and close on November 13, with anchor investors set to receive share allotments on November 10, according to its public announcement.

The IPO consists of a fresh issue of equity shares worth Rs 3,100 crore and an offer for sale (OFS) of shares aggregating up to Rs 380 crore by promoters. Founders Alakh Pandey and Prateek Boob (Maheshwari) will each sell shares worth Rs 190 crore through the offer-for-sale component. Both currently hold a 40.31% stake in the company.

The Noida-based firm had filed draft papers with the Securities and Exchange Board of India (SEBI) in March 2025 through a confidential pre-filing route, receiving the regulator’s approval in July. The company subsequently filed an updated Draft Red Herring Prospectus (DRHP) in September before submitting its Red Herring Prospectus (RHP). The confidential pre-filing route allows companies to withhold IPO details from public view until later stages.

PhysicsWallah said the proceeds from the issue will be used to fund expansion and growth initiatives, including the fit-out of new centers and lease payments for existing ones. Of the total, Rs 460.5 crore will be allocated for setting up new offline and hybrid centres, while Rs 548.3 crore will go towards lease payments of existing facilities.

The company will also invest Rs 47.2 crore in its subsidiary Xylem Learning—including Rs 31.6 crore for new centres and Rs 15.5 crore for lease payments and hostels—and Rs 33.7 crore in Utkarsh Classes & Edutech for lease obligations. A further Rs 200.1 crore has been earmarked for server and cloud infrastructure, Rs 710 crore for marketing initiatives, and Rs 26.5 crore for acquiring additional stake in Utkarsh Classes.

Founded as a digital education platform, PhysicsWallah offers test preparation courses for JEE, NEET, GATE, and UPSC, along with upskilling programs delivered through online platforms, offline centres, and hybrid models. Its main YouTube channel, Physics Wallah – Alakh Pandey, had 13.7 million subscribers as of July 15, 2025, while its broader YouTube network reached 98.8 million subscribers by June 30, 2025, growing at a 41.8% CAGR between FY23 and FY25.

The company, backed by WestBridge Capital, Hornbill, and GSV Ventures, has narrowed its losses to Rs 243 crore in FY25, down from Rs 1,131 crore in FY24. Revenue for the year rose to Rs 2,887 crore, compared with Rs 1,941 crore in the previous fiscal.

According to its filing, 75% of the issue size has been reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and the remaining 10 per cent for retail investors.

PhysicsWallah’s IPO marks a milestone as India’s first edtech startup to go public, making it a bellwether for investor sentiment in a sector that has faced funding slowdowns, layoffs, and valuation corrections. The listing comes amid ongoing challenges for larger peers like BYJU'S and Unacademy, positioning PhysicsWallah as a potential test case for the sustainability of India’s edtech model.

PhysicsWallah shares are expected to make their stock market debut on November 18, 2025.

(With inputs from PTI)