Can PhysicsWallah IPO ace the market test? Check key strengths, risks here

PhysicsWallah IPO: The ₹3,480-crore issue comprises a fresh issue of 284.4 million shares aggregating to ₹3,100 crore and an offer for sale (OFS) of 34.9 million shares aggregating to ₹380 crore.

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PhysicsWallah IPO: The initial public offering (IPO) of PhysicsWallah (PW), an education-technology (Ed-tech) platform, is set to open for subscription next week on Tuesday, November 11, 2025. 

 

The ₹3,480-crore PhysicsWallah IPO comprises a fresh issue of 284.4 million shares aggregating to ₹3,100 crore and an offer for sale (OFS) of 34.9 million shares aggregating to ₹380 crore.

 

Under the OFS, PhysicsWallah co-founders Alakh Pandey and Prateek Boob will divest part of their holdings.

 

The three-day bidding window of PhysicsWallah IPO will close on Thursday, November 13, 2025, with the allotment of shares expected to be finalised on Friday, November 14, 2025. The shares are likely to list on the NSE and BSE on Tuesday, November 18, 2025.

 

PhysicsWallah IPO has been priced in the band of ₹103 to ₹109 per share, with a minimum lot size of 137 shares. 

 

MUFG Intime India is the registrar, while Kotak Mahindra Capital Company, J P Morgan India Private Limited, Goldman Sachs (India) Securities Private Limited and Axis Capital Limited are the book-running lead managers for the issue, PhysicsWallah RHP revealed.

 

Notably, the PhysicsWallah IPO’s anchor investor bidding date is set for November 10, 2025.

 

According to the RHP, PhysicsWallah proposes to utilise the net proceeds from its IPO towards several key objectives. A portion of ₹460.55 crore will be allocated for capital expenditure on fit-outs of new offline and hybrid centres, while ₹548.31 crore will go towards lease payments for existing identified offline and hybrid centres operated by the company. 

 

Additionally, ₹31.65 crore is earmarked for capital expenditure related to new offline centres of Xylem, and ₹15.52 crore for lease payments for Xylem’s existing offline centres and hostels. An investment of ₹33.70 crore is planned in its subsidiary, Utkarsh Classes & Edutech Private Limited, to fund lease payments for Utkarsh’s existing offline centres. 

 

The company also intends to allocate ₹200.11 crore towards server and cloud-related infrastructure costs, ₹710 crore for marketing initiatives, and ₹26.50 crore for funding inorganic growth through future acquisitions and general corporate purposes.  ALSO READ | Groww IPO closes today; check latest subscription status, GMP

Meanwhile, here are the key strengths and risks of PhysicsWallah IPO:

Key strengths

Rapid user growth: PhysicsWallah's paid users rose to 0.45 crore in FY25, growing at a 61.9 per cent compound annual growth rate (CAGR) since FY23, supported by a strong student community.

 

Social initiatives: Through the PW Foundation’s Utthan programme, the firm partners with schools in Delhi, UP, and Bihar to provide tech infrastructure, free teacher training, and educational content.

 

Diverse offerings: Courses now span 13 education categories – from early learning to government exams and skill development – up from six in FY23.

 

Multi-channel delivery: PhysicsWallah operates online, offline, and hybrid models; among India’s top five edtech firms by revenue with 1.37 crore YouTube subscribers.

 

Strategic acquisitions: Acquired Xylem and Utkarsh Classes to strengthen its presence in South India and government exam prep segments.

 

Tech-driven scalability: Backed by a 548-member tech team, its LMS uses AI and analytics to boost learning outcomes and manage large student volumes.

 

Strong revenue growth:  The company's revenue surged from ₹744 crore in FY23 to ₹2,899 crore in FY25.  ALSO READ | Tenneco Clean Air IPO: From price band to GMP, here's all you need to know

Key risks

Persistent losses: PhysicsWallah's Net losses stood at ₹225.76 crore in FY25 and ₹1,143 crore in FY24, mainly due to high operating and finance costs.

 

High attrition: Employee attrition improved to 36.6 per cent in Q1FY26 but remains elevated, posing challenges for quality and consistency.

 

Dependence on key segments: Over half of PhysicsWallah's revenue comes from NEET, JEE, and UPSC streams, exposing it to concentration risk.

 

Regional dependence: Major revenue contribution from Delhi-NCR, Bihar, Rajasthan, UP, and Haryana; a slowdown in these could hurt performance of PhysicsWallah.

 

Refunds and litigation: PhysicsWallah faces risks from refund claims (₹3 crore) and ongoing legal disputes (~₹1 crore) that could impact profitability.

 

Offline expansion risk: Rapidly growing offline network (502 centres and schools) faces location, staffing, and compliance challenges.

 

Integration and global risk: Acquisitions and GCC expansion bring integration and regulatory uncertainties that could delay growth.