PhysicsWallah Shares Debut At 33% Premium Over IPO Price On D-Street

Delhi-based leading ed-tech company PhysicsWallah Ltd. listed on the National Stock Exchange at Rs 145, a 33.03% premium over its issue price of Rs 109 apiece.

On the BSE, the stock listed at Rs 143.10 apiece, marking a premium of 31.28%.

PhysicsWallah's initial public offer looked to raise up to Rs 3,100 crore through a fresh issue, along with co-founders Alakh Pandey and Prateek Maheshwari selling equity worth Rs 380 crore via an offer-for-sale. Both founders own over 80% stake.

The mainboard IPO comprises a fresh issue of 28.44 crore shares, valued at Rs 3,100 crore, and an offer-for-sale (OFS) of 3.49 crore shares, amounting to Rs 380 crore. The IPO price band was fixed at Rs 103-Rs 109 per share.

PhysicsWallah 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.

The company plans to spend the marketing initiatives spend over a span of three years, co-founder Alakh Pandey told NDTV Profit.

"In India, the budget for marketing expenses is equal to about 30–40% for the education sector. However, in our case it's just 7–8%," Pandey said while explaining the breakdown. "A lion's share of this amount will go towards expanding our operations in the south."

PhysicsWallah currently operates its southern presence through its own outlets, its application and subsidiary Xylem.

In a media interview last year, co-founder Prateek Maheswari shared that Physics Wallah operates 81 YouTube channels with over 36 million subscribers and more than 2.1 million daily active users.

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