PhysicsWallah, one of India’s most prominent edtech companies founded by Alakh Pandey, launched its much-anticipated initial public offering (IPO) this week, marking a crucial moment for the education technology sector after Byju’s downfall. However, early investor response has been tepid, underscoring a cautious mood among market participants despite the company’s strong brand and wide student reach.
The IPO, which will remain open for bidding from November 11 to November 13, 2025, saw a slow start on its opening day. As of 2:44 PM, overall subscription stood at 0.06 times, with the retail portion subscribed 0.30 times, non-institutional investors (NIIs) at 0.02 times, and qualified institutional buyers (QIBs) yet to place bids.
The subdued response indicates investor caution amid broader concerns about edtech sector valuations, slowing growth, and increasing competition. Even with PhysicsWallah’s reputation for affordable education and its massive online following, market sentiment appears hesitant in the short term.
According to InCred Equities, PhysicsWallah’s business model remains one of its biggest strengths. The firm lauded its “freemium” strategy, which effectively converts free users into paying subscribers, and its balanced mix of online and offline operations. The brokerage, however, noted that the IPO’s valuation at an EV/Sales multiple of 10.7x appears expensive. It issued a “Subscribe (Long-Term)” recommendation, citing strong fundamentals and brand recognition but warning of risks related to the company’s dependence on its founder’s image and execution challenges in expanding offline centres.
SBI Securities took a more reserved stance, rating the IPO “Neutral.” The brokerage said that at the upper price band of ₹109, the valuation of 9.7x EV/Sales was “fairly valued” but pointed out that profitability pressures persist despite robust revenue growth. It advised investors to observe post-listing performance before making significant commitments.
Anand Rathi, meanwhile, issued a “Subscribe – Long Term” call, highlighting PhysicsWallah’s hybrid model that combines the scalability of digital learning with the accessibility of physical coaching centres. The brokerage said that although the IPO appears “fully priced,” the company’s long-term prospects look strong given its potential to expand into new education segments and regional language markets.
The ₹3,480 crore IPO includes a fresh issue of ₹3,100 crore and an offer for sale (OFS) of ₹380 crore, comprising 28.44 crore fresh shares and 3.49 crore OFS shares. The allotment will be finalised on November 14, 2025, and the listing is expected on November 18, 2025, on both the BSE and NSE.
The grey market premium (GMP)—a key indicator of investor sentiment ahead of listing—was muted at ₹3 per share as of November 11, implying a possible listing price of around ₹112, just 2.75% above the issue price. This suggests limited scope for substantial listing-day gains.
Analysts broadly agree that PhysicsWallah’s IPO may appeal more to long-term investors than short-term traders. The company’s strong brand equity, large learner base, and consistent growth trajectory provide a solid foundation, but its lofty valuations and early subscription trends indicate a measured, rather than euphoric, investor response.
In short, the PhysicsWallah IPO embodies the broader reality of India’s edtech sector today: strong growth potential, high expectations, but investors demanding clearer paths to profitability before rewarding companies with aggressive valuations.
