Physics Wallah had a strong debut on Dalal Street and bucked the broader slowdown in the Indian edtech sector. The stock opened at ₹145 on the NSE and ₹143.10 on the BSE, giving investors a premium of over 33% on the issue price of ₹109. The shares then rose further, closing nearly 44% higher, and valuing the company at a remarkable ₹448 billion.
An Unexpected Surge Given Modest Performance Expectations
Market participants were expecting only modest gains based on grey market trends. However, there was a rush of investor interest as soon as the stock started trading. Physics Wallah successfully raised ₹34.8 billion in the IPO and had strong participation from institutional buyers, which helped provide better momentum for the stock during early trading.
From YouTube Channel to Edtech Giant
Physics Wallah has come a long way since the introduction of the company, which was led by Alakh Pandey as an initial YouTube enterprise back in 2016. It has since established a large hybrid model providing coaching for the JEE, NEET, UPSC and other state-specific competitive examination prep.
Business is conducted from 303 offline and hybrid centres throughout India and the Middle East as well as an even larger online presence with 13.7 million YouTube subscribers.
Rapid Growth Amidst Turbulence in the Sector
The edtech industry has faced major turbulence over the funding crisis and governance failures, with companies like Byju’s in insolvency and litigation, and Unacademy cutting back rather harshly. In contrast, Physics Wallah has been resilient and reported solid financial results, with revenues climbing 49% to ₹28.9 billion for FY25, and a far smaller net loss from the previous year’s performance.
Institutional Investors Support Long-Term Potential
The IPO saw subscription oversubscribed 1.92 times and institutional investors drove most of the demand. Analysts attribute this confidence to the dominant brand in the test-prep space, its loyal student base and its low-cost hybrid educational model.
They noted the company is amongst a small pool of profitable edtech platform in India which adds to positive sentiment.
Investors: Should You Sell or Hold?
Experts, overall, are cautiously optimistic. Shivani Nyati from Swastika Investmart said the strong listing reflects the company’s predominant position in the test-prep space. She noted the company had a loyal student community, scalable content engine and rapid offline expansion – but also a host of competitors and regulatory uncertainty.
Nyati suggested booking partial profit and hold the remainder for medium-term thinking to gain at stop loss ratio of ₹130.
A Fresh Start for Indian Edtech
Its initial public offering represents a significant achievement both for Physics Wallah and for an industry that is at last showing signs of recovery. The firm will now be able to increase its offline presence, invest in technology, and make acquisitions.
The positive reception to this listing is also a positive sign of returning investor enthusiasm for high-growth education ventures, even as the sector consolidates.
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