The listing of PhysicsWallah Ltd. will be in focus as investors await the company's debut on the stock market.
Shares of PhysicsWallah will list on the BSE and NSE on Tuesday, November 18. The share allotment status for the PhysicsWallah IPO was finalised on Friday. Successful bidders were allotted the shares on Monday, and refunds were also issued on the same day.
Ahead of its listing, the grey market premium, an unofficial barometer of the expected share price, has gained over the last few days. Earlier, amid tepid interest, the GMP for the mainboard offering of the PhysicsWallah IPO had declined, suggesting a high chance of a muted listing, if not a discounted listing.
The IPO of the ed-tech company closed with an overall subscription of 1.81 times. According to BSE data, investors bid for 336,227,044 shares against the 186,204,143 shares on offer.
Amid the lacklustre interest, the GMP had slid to Rs 0 when the IPO concluded its subscription. However, there has been a consistent increase in the GMP as the stock debuts on the market today. The current GMP indicates positive listing gains of up to 13% for investors.
Here's a look at what the latest market trends indicate ahead of the share listing of PhysicsWallah Ltd.
PhysicsWallah Share Price (Expected)
The Grey Market Premium (GMP) for the PhysicsWallah IPO stood at Rs 14 per share as of 7:00 a.m. on November 18. Based on the upper price band of Rs 109, the unlisted shares of PhysicsWallah were trading at Rs 123, indicating an estimated listing gain of 12.84%.
This means that shares of PhysicsWallah are expected to list on BSE and NSE at around Rs 123 per share, with a premium of around 13% when the IPO debuts on Dalal Street.
About PhysicsWallah IPO
The PhysicsWallah IPO was a book-built issue worth Rs 3,480 crore, comprising both fresh shares and an offer-for-sale (OFS) component. The fresh issue involved 28.44 crore shares, valued at Rs 3,100 crore, while the OFS segment comprised 3.49 crore shares, amounting to Rs 380 crore.
The price band for the IPO was set at Rs 103 to Rs 109 per share. A single lot consists of 137 shares, requiring a minimum investment of Rs 14,933 by retail investors.
PhysicsWallah is an edtech company that provides test-preparation courses for exams such as JEE, NEET, and UPSC, as well as upskilling programmes in data science, banking and finance, and software development.
Use Of Proceeds
Physics Wallah will utilise the proceeds from the fresh issue for various purposes. It will use Rs 710 crore for marketing initiatives, Rs 548 crore for lease payments of existing identified offline and hybrid centers operated by the company, Rs 460 crore for capital expenditure for fit-outs of new offline and hybrid centers, and Rs 471 crore for investment in subsidiary Xylem Learning Pvt.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
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