PhysicsWallah's Rs 3,480 crore IPO to open for subscription on Nov 11

Edtech major to raise Rs 3,480 crore through fresh issue and OFS; proceeds to fund marketing, offline centre expansion, and tech infrastructure

Education company PhysicsWallah on Wednesday said it has filed its Red Herring Prospectus (RHP) for a Rs 3,480 crore initial public offering (IPO). The issue comprises a fresh issue of Rs 3,100 crore and an offer for sale (OFS) worth Rs 380 crore by promoters, including Alakh Pandey and Prateek Boob.

 

The IPO will open on November 11 and close on November 13. The book running lead managers for the issue are Kotak Mahindra Capital Company Limited, JP Morgan India Private Limited, Goldman Sachs India Securities Private Limited, and Axis Capital Limited.

 

Promoter holdings and key investors

 

According to the RHP, promoters Alakh Pandey and Prateek Boob each hold a 40.31 per cent stake in the company. Among institutional investors, WestBridge AIF holds 6.40 per cent, Hornbill Capital Partners 4.41 per cent, GSV Ventures Fund 2.85 per cent, Lightspeed Opportunity Fund 1.79 per cent, and Setu AIF Trust 1.39 per cent.

 

 

Use of proceeds

 

PhysicsWallah plans to use the bulk of the IPO proceeds for marketing initiatives (Rs 710 crore), lease payments for existing identified offline and hybrid centres (Rs 548.3 crore), and expansion of offline centres (Rs 460.5 crore).

 

The company will also allocate Rs 200.1 crore for server and cloud-related infrastructure, Rs 47.2 crore for investment in subsidiary Xylem Learning, Rs 28 crore for lease payments of Utkarsh Classes and Edutech’s identified centres, and Rs 26.5 crore for acquiring additional shareholding in these subsidiaries.

 

Strong revenue growth

 

The company reported revenue of Rs 847 crore in the April–June quarter of FY26, up 33.3 per cent from Rs 635.2 crore in the same quarter last year. On an annual basis, revenue grew 48.7 per cent from Rs 1,940.7 crore in FY24 to Rs 2,886.6 crore in FY25.