Physics Wallah IPO: Day 3 Subscription Muted at 21%; Why EdTech’s GMP is Slipping
Introduction
The initial public offering (IPO) of Delhi-based leading Ed-tech firm PhysicsWallah’s on day 3 acquired a muted subscription response, while its Grey Market Premium (GMP) slipped because of cautious investor sentiment. There are concerns about the organisation’s financial losses and high valuations, in spite of robust revenue growth.
PhysicsWallah IPO GMP, PhysicsWallah Subscription Status
Finally the wait is over for the investors who are searching for taking part into the PhysicsWallah IPO. On November 11, the issue opened for subscription. The organization, well-known for its hybrid and online learning programs for competitive exams, is stepping into the market with a price band of approximately Rs. 103-109 per share. Until 13th November, Thursday, the subscription will remain open.
|
PhysicsWallah IPO |
Key details |
|
Price band |
Rs. 103-109 per share |
|
IPO date |
11th November – 13th November |
|
GMP |
3% |
|
IPO Allotment date |
14th November |
|
Listing date |
17th November |
Subscription Details
As per the IPO review, the new age tech IPO that was open for subscription from 11th to 13th November, 2025, experienced a tepid preliminary demand, even though it gradually got subscribed fully on the last day, mainly because of the demand from Qualified Institutional Buyers (QIBs).
|
Category |
IPO Subscription status Day 2 |
PW day 3 subscription |
|
Overall |
0.13x (13%) |
1.79x (Fully subscribed) |
|
Retail investors (RIIs) |
0.59x (59%) |
0.83x (83%) |
|
Non-institutional investors (NIIs) |
0.06x (6%) |
0.2x (20%) |
|
Qualified Institutional Buyers (QIBs) |
0.00X (0%) |
1.01x (Fully subscribed) |
|
Employees |
1.78x |
2.5x |
Reason behind GMP slipped
Based on Edtech valuation, the GMP, which serves as an initial indicator of investor anticipations, significantly slipped from a preliminary high to a minimal premium, determining muted listing gains.
- Valuation concerns: While the PhysicsWallah valuation outlined massive growth in revenue, the PW IPO was regarded to be priced highly by a few of the analysts, with a Price-to-sales (P/S) multiple of around 10x on the basis of the FY25 numbers, which confident analysts considered as stretched.
- Broadening losses: Significant net losses have been incurred by PhysicsWallah during the current financial year, which broadened from Rs. 84.1 cr. during FY23 to Rs. 243.3 cr. During FY25, increasing major concerns among a few investors regarding sustained productivity
- Sector sentiment: The wider Edtech IPO, Alakh Pandey stated that the sector has experienced challenges along with scrutiny, with high-profile issues such as Byju’s fall making investors cautious regarding the governance concerns and prospects of the industry.
- Gentle demand: The preliminary low subscription numbers, specifically from NIIs and QIBs in the first two days, determined poor instant interest that made GMP unhappy.
IPO Allotment of PhysicsWallah and listing date
The investors could anticipate the allotment to be finalised on 14th November, Friday, 2025, with refunds planned on 17th November, Monday, 2025. Furthermore, the shares will be credited productively to the demat accounts of the applicants on the same day.
Usage of IPO proceeds
- PhysicsWallah will make efficient use of the proceeds from the fresh issue for numerous purposes.
- It will utilise Rs. 710 cr. for marketing initiatives, Rs. 471 cr. for investment into subsidiary Xylem Learning Pvt.
- It will also use Rs. 460 cr. for capital expenses on the fit-out of new hybrid and offline centres.
- PhysicsWallah will also utilise Rs. 548 cr. for lease payments of current recognised hybrid and offline centres executed by the organisation.
Summary
In spite of these aspects, a few of the analysts suggested a “Subscribe for Long-term” view by citing the robust brand of the company, huge student community, and an effective hybrid business model. Moreover, the shares are scheduled to be cautiously listed on the NSE and BSE on 18th November, 2025.
