PhysicsWallah Stock Surges Post-IPO#

PhysicsWallah shares have listed on the National Stock Exchange (NSE), trading at 33% above their initial public offering (IPO) price of ₹460 per share. The company's stock closed around 44% higher than its IPO value as investors capitalized on a robust demand, resulting in substantial gains for both individual and institutional buyers. This listing marks PhysicsWallah’s entry into the Indian Stock Market, underscoring the growing interest in educational technology (edtech) firms amidst economic growth trends.

Main Content: PhysicsWallah IPO Analysis#

Core Facts and Details

Physics Wallah, once a scrappy YouTube channel with over 10 million subscribers, is now set to list on Dalal Street at an impressive valuation of ₹28,073 crore ($3.2 billion). The company’s initial public offering (IPO) will see it listing for ₹3,480 crore.

The IPO price band has been announced as between ₹103 and ₹109 per share. Retail bidding is set to commence from November 11 through November 13 with the shares expected to list on November 18. Anchor investors have secured placement in a day early (November 10).

Key Developments and Timeline

The IPO process for PhysicsWallah has been swift, starting with its filing of IPO papers with SEBI earlier this month. The company's financials are impressive:

• Financial Year 2024:

  • Revenue: ₹2,015 crore
  • Adjusted EBITDA (EBITDA adjusted for non-recurring expenses): ₹67 crore
  • Net Loss: ₹1,131 crore

• Financial Year 2025:

  • Revenue: ₹3,039 crore
  • Adjusted EBITDA: ₹432 crore
  • Net Loss: ₹243 crore

Important Context

PhysicsWallah's journey from YouTube to IPO is a testament to the power of content in education. Founded by Alakh Pandey and Prateek Boob, Physics Wallah began as an educational platform that leveraged online video lessons. The channel offered detailed explanations for physics problems and equations, resonating with students across India.

The company’s rapid growth was supported through strategic investments from investors who recognized the potential of its model in engaging young learners via digital platforms. These investments have allowed it to scale up operations significantly, including expanding into offline classrooms and developing mobile applications.

Impact and Implications

PhysicsWallah's IPO could set a new standard for educational technology startups looking to enter public markets. The company’s valuation at ₹28,073 crore ($3.2 billion) is backed by its substantial revenue growth from 2024 (₹1,965 crore in FY2024) to the projected ₹3,039 crore for FY25.

Given these numbers and considering factors like high user engagement on YouTube and strong financial performance, PhysicsWallah appears well-positioned for continued success post-IPO. The company's ability to attract institutional investors early suggests a solid foundation built upon its educational content innovations and scaling capabilities.

For retail investors interested in the IPO, it presents an intriguing opportunity given both its promising prospects and favorable valuation relative to peers within the education technology sector. Investors should carefully consider their investment strategy based on this information before applying for PhysicsWallah shares.

Summary#

Physics Wallah's recent surge in share prices underscores investor confidence following strong academic performances and innovative teaching methods. As the company continues to innovate, investors will closely monitor its expansion plans and educational outcomes. Next steps may include exploring new markets or partnerships that capitalize on their unique brand appeal. Watch for further developments as Physics Wallah navigates this challenging but lucrative landscape.