PhysicsWallah defies grey market trend, gains 44% on Day 1

The stock closed 44% higher than its IPO price, taking the company’s market capitalisation to Rs 44,751 crore. At the IPO price, PhysicsWallah was valued at Rs 31,527 crore.

Image used for representational purposes Photo | ANI

Defying grey market expectations in the backdrop of a tepid subscription rate for its initial public offering (IPO), PhysicsWallah made a strong market debut on Tuesday. The edtech company’s shares were listed at Rs 145 apiece on the NSE, a premium of more than 33% from the IPO price of Rs 109. Following the listing, the scrip advanced 12% to hit the day's high at Rs 161.99 and finally settled at Rs 156.49 apiece (up 44%).

The stock closed 44% higher than its IPO price, taking the company’s market capitalisation to Rs 44,751 crore. At the IPO price, PhysicsWallah was valued at Rs 31,527 crore.

The bumper opening was significantly higher than the grey market premium (GMP). Before the debut, the unlisted shares of the company were trading with around 13% GMP over the IPO price in the unofficial market, according to data on Investorgain. The company’s GMP had plunged to zero on the day the IPO closed for public bidding on November 13.

Shivani Nyati, Head of Wealth at Swastika Investmart, said that the listing reflected investor confidence in PhysicsWallah’s (PW’s) strong brand recall, affordable test-prep offerings, and its fast-growing hybrid model through both online platforms and PW Pathshala centres.

“The company’s strengths include a loyal student base, scalable digital content engine, expanding offline footprint, and diversified presence across JEE, NEET, UPSC, and state-level exams. However, competition from other edtech and offline coaching giants, regulatory uncertainties in the education sector, and the challenge of sustaining profitability during expansion remain key risks,” stated Nyati.

She added that allottees may book partial profits and hold the remaining shares for medium-term growth with stop loss at Rs 130.

PW’s initial share sale was subscribed 1.81 times, with bids for 33,62,27,044 equity shares compared to 18,62,04,143 shares on offer. The company’s Rs 3,480-crore IPO consisted of fresh fund raise of Rs 3,100 crore and secondary share sale of Rs 380 crore.