PhysicsWallah IPO Struggles to Find Investors: Should You Subscribe or Stay Away?

New Delhi, November 13: The much-anticipated PhysicsWallah IPO-one of the most talked-about offerings in India’s edtech sector-is struggling to attract investors. With the subscription window closing today, Thursday, November 13, the issue has received only 14% overall subscription so far, signaling limited enthusiasm among retail and institutional investors alike.

According to the latest data, the IPO has been subscribed just 0.14 times in total. Qualified Institutional Buyers (QIBs) have yet to participate, while the retail investor category has seen 0.63x subscription. The Non-Institutional Investor (NII) portion remains muted at 0.06x.

Founded by Alakh Pandey, PhysicsWallah has become a household name among aspirants preparing for competitive exams. The company’s hybrid learning model-combining affordable offline classes with free online content-has made it one of the few profitable and scalable brands in India’s edtech ecosystem.

Should You Subscribe to the PhysicsWallah IPO?

Analysts are divided over whether investors should subscribe to the IPO. According to InCred Equities, the company’s “freemium” model, which successfully converts free users into paying customers, and its massive YouTube following underpin its growth story.

“The company has demonstrated strong momentum across both its online and offline verticals,” InCred said in its report. “At the upper price band, the IPO is valued at an EV/Sales ratio of 10.7x. While valuations appear stretched, PhysicsWallah remains well-positioned to disrupt the Indian edtech market.”

InCred has given the IPO a ‘Subscribe’ rating but recommends it primarily for medium- to long–term investors. It flagged concerns over the company’s heavy Reliance on founder Alakh Pandey’s personal brand, high faculty attrition, and the operational risks of offline expansion.

SBI Securities, however, has taken a more cautious stance, assigning the IPO a ‘Neutral’ rating. The brokerage said, “At an EV/Sales multiple of 9.7x based on post-issue capital, the issue appears fairly valued at the upper price band of Rs 109. Despite strong revenue growth, profitability pressures persist. We suggest investors watch the stock’s post-listing performance before making aggressive bets.”

In contrast, Anand Rathi has maintained a more optimistic view, rating the issue as ‘Subscribe – Long Term’. The brokerage believes PhysicsWallah’s hybrid strategy-leveraging physical centers and digital scalability-positions it well for future growth.

“At the higher price band, the company is valued at 10.8x FY25 Price-to-Sales. The pricing seems reasonable, and PhysicsWallah’s plans to expand into new education segments and regional Markets present strong long-term opportunities,” the firm said.

PhysicsWallah IPO Details

The PhysicsWallah IPO price band has been fixed between Rs 103 and Rs 109 per share. The lot size is 137 shares, making the minimum investment for retail investors Rs 14,933 at the upper price band.

For larger investors, bNII (big Non-Institutional Investors) need to apply for 9,179 shares (67 lots) requiring Rs 10,00,511, while sNII (small Non-Institutional Investors) must invest Rs 2,09,062 for 1,918 shares (14 lots).

A total of 7,52,688 shares have been reserved for employees at a Rs 10 discount per share. Kotak mahindra Capital Co. Ltd. is the book-running lead manager, and MUFG Intime India Pvt. Ltd. is the registrar for the issue. The IPO opened for subscription on November 11 and will close today, November 13.

Grey Market Trend: Muted Premium

The Grey Market Premium (GMP) for PhysicsWallah shares has remained subdued throughout the subscription period. As of 8:58 AM on November 13, the GMP stood at Rs 1.25, implying an estimated listing price of Rs 110.25 versus the issue price of Rs 109-a marginal 1.15% listing gain.

The low GMP indicates a lack of speculative excitement among traders. Earlier in the week, grey market activity also showed tepid momentum, reflecting cautious sentiment toward the edtech IPO amid overall market volatility.

Listing Date: November 18, 2025 (BSE and NSE)
Allotment Date: November 14, 2025