Shares of PhysicWallah rose 18% today, June 4 after the company announced its plan to restructure students lending policy. In an exchange filing during market hours on Thursday, the edtech firm informed about its strategy to tie up with multiple regulated third-party NBFCs to enable student lending needs.
PhysicsWallah share price advanced 17.82% intraday to Rs 108.44 apiece. The scrip was trading 13.93% higher at 11:39 am, while the benchmark Nifty 50 index was 0.15% up.
The company said that the decision will help to reverse its earlier approach and would reduce balance sheet and credit related risks.
Speaking on the development, Prateek Maheshwari, Co-founder of PhysicsWallah said, “We received feedback from
our partners that our core strength lies in building communiƟes and our online business. Our lending business
is best left to regulated third-party NBFCs who have created robust underwritng capabilites."
He added, "We truly believe that prudent capital allocaƟon and shareholder value remains our foremost priority and in
light of the feedback received from our partners to the said announcement, we have exercised our fiduciary
responsibility to revisit this decision and enable student lending through regulated third-party NBFCs.”
PhysicsWallah had recently announced investment of approximately Rs 120 crore through an equity-infusion in its fully-owned subsidiary FinZ Finance Private Limited. In the latest exchange filing, the company informed that strategy for Finz Finance will be decided in the near future subject to the Board and other regulatory approvals.
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