PhysicsWallah made a strong entry into the stock market on Tuesday, with its shares rising sharply above the issue price and prompting immediate debate among investors over whether to buy, sell or hold. As per ET, the stock opened at Rs 145 on the NSE, about 33 per cent higher than its IPO price of Rs 109. On the BSE, it began trading at Rs 143.10, up 31 per cent, before climbing further to touch Rs 162.05 during the day. Company’s market value reached Rs 43,453 crore.Analysts said the upbeat debut reflects investor confidence in the edtech firm’s brand presence and hybrid teaching model. Shivani Nyati of Swastika Investmart was quoted by ET as saying that the company’s “strong brand recall, affordable test-prep offerings, and fast-growing hybrid model” had contributed to the strong listing. She added that PhysicsWallah benefits from a loyal student base, a broad exam portfolio and a scalable digital content system, though she warned of risks from larger rivals, regulatory uncertainty and profitability pressures. Nyati suggested that allottees may consider booking some profits while keeping part of their holdings for medium-term gains, with a stop-loss at Rs 130.The Rs 3,480–3,481 crore IPO — one of the largest from India’s edtech space — drew nearly twice the subscription by the final day, reported PTI and ET. The offer comprised a fresh issue of about Rs 3,100 crore and a Rs 380 crore offer for sale. QIBs drove demand with 2.86 times subscription, while retail interest stood at 1.14 times and non-institutional bidding was relatively soft. Employees subscribed 3.71 times, supported by a Rs 10 discount. Ahead of the IPO, the company raised Rs 1,563 crore from anchor investors, whose shares remain locked in until mid-December and mid-February.Founded by Alakh Pandey and Prateek Boob, PhysicsWallah has grown from a YouTube channel into a major edtech brand, with 13.7 million subscribers, 4.46 million paid learners and over 300 centres as of June 2025, according to ET. In FY25, revenue rose 51 per cent to Rs 3,039 crore and the company posted a net profit of Rs 243 crore after a loss in FY24. It remains loss-making in cumulative terms and reported a Rs 127 crore loss in Q1 FY26. As per news agency PTI, funds from the IPO will support expansion, technology upgrades, infrastructure and acquisitions.Brokerages offered mixed views before listing. Incred Equities recommended “Subscribe”, citing strong growth in both online and offline segments despite stretched valuations. SBI Securities took a neutral stance, while Swastika Investmart advised avoiding the issue. Analysts cautioned that although the debut was strong, modest subscription levels, competitive pressures and uneven profitability could lead to volatility once the initial excitement settles.PhysicsWallah is the first major pure-play edtech company to list on Indian exchanges, marking a milestone for the sector, reported PTI.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
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