India's homegrown edtech unicorn PhysicsWallah, founded by popular teacher Alakh Pandey, made its stock market debut on Tuesday with a Rs 3,480-crore IPO but investor excitement seems rather muted on Day 1. By 10:50 am, the IPO was just 2% subscribed, according to NSE data. Retail investors showed a bit more enthusiasm, filling 11% of their quota, while non-institutional investors booked only 1%. Big institutional players, meanwhile, are yet to make their move.

Grey Market Signals Cooling Interest

Ahead of its official listing, PhysicsWallah's grey market premium (GMP), an early indicator of investor sentiment, has started slipping. Unlisted shares were trading at around a 2.75% premium to the IPO price, down from nearly 4.6% last week, as per Investorgain.

The drop suggests a lukewarm response from the street, even though the edtech brand has massive recall among students.

IPO Details: Price, Dates, and What's on Offer

PhysicsWallah's IPO aims to raise Rs 3,480 crore, which includes a fresh issue worth Rs 3,100 crore and an offer for sale (OFS) of Rs 380 crore. The price band is set between Rs 103 and Rs 109 per share, and the issue will close on November 13.

Retail investors can bid for a minimum of 137 shares, which means an investment of Rs 14,933 at the upper end of the price band. The company is eyeing a valuation of about Rs 31,500 crore, with shares expected to list on November 18.

Mixed Reactions From Analysts

Market experts are divided over whether the IPO is worth subscribing to.

SBI Securities took a neutral stance, saying it would rather watch how the stock performs after listing. The brokerage noted that while PhysicsWallah has grown into one of India's top five edtech firms by revenue, its losses have widened, from Rs 81 crore in FY23 to Rs 216 crore in FY25.

“At the upper price band, the valuation looks fair but not cheap,” it said.

Angel One echoed a similar view, calling the company's financials“hard to compare” since it's still loss-making and doesn't have any direct listed peers.“PhysicsWallah's growth story is impressive, but profits are yet to catch up,” the brokerage said, advising investors to wait for more clarity before taking long-term positions.

On the other hand, InCred Equities struck a more bullish tone, recommending investors subscribe to the IPO. It expects PhysicsWallah to turn profitable in the medium term as it scales both its online and offline learning models.

“The valuation may seem steep, but given the brand's strong student connect and rapid growth, PhysicsWallah could be a long-term winner,” InCred said.

Harshal Dasani of INVasset PMS added that the listing will test whether India's edtech sector can move from hype to profitability.“At the upper-band valuation, PhysicsWallah trades at a premium to traditional education companies - justified only if it maintains 25–30% growth for the next three years,” he said.

Should You Apply?

The early subscription numbers show that investors are being cautious. While PhysicsWallah has strong brand equity and loyal users, its profitability concerns and slowing GMP hint that the hype may have cooled for now.

MENAFN11112025007385015968ID1110324755