The PhysicsWallah IPO was subscribed about 1.8× (i.e., ~1.81 times) on the final day of bidding.
Here are the key details:
- The total size of the issue: approx. ₹3,480 crore, comprising a fresh issue of approx. ₹3,100 crore and an offer-for-sale (OFS) of ~₹380 crore.
- In the Qualified Institutional Buyer (QIB) category, subscription was around 2.7× their quota.
- The employee reservation portion was oversubscribed about 3.5×.
- Retail investors subscribed about 1.06×, while Non-Institutional Investors (NIIs) were much weaker (~0.48×) according to one source.
- Price band: ₹103 to ₹109 per share.
- Basis of subscription uptick: The first two days had low subscription (Day1: ~7%, Day2: ~13%) and demand picked up sharply on the final day.
Why this matters
- For PhysicsWallah, a 1.8× subscription shows a moderate level of investor interest—not extremely high oversubscription but decent given the issue size and market conditions.
- Strong QIB and employee category interest is a positive sign: shows institutional belief and internal confidence.
- The weaker NII/retail response may reflect investor caution about ed-tech valuations or upcoming listing risks.
- This performance sets expectations for its post-IPO listing and market debut.
Considerations & Outlook
- Subscription alone doesn’t guarantee a high listing premium — grey market premium (GMP) was muted (₹1-2 range) implying near-flat listing expectations. Republic World
- Investors should watch the company’s growth, profitability, and how the capital raised is deployed (offline expansion, tech upgrade, acquisitions) since large fresh equity was part of the issue.
- Market sentiment for ed-tech remains cautious: though the brand is strong, competition, regulatory risk, and monetisation remain key areas to monitor.
- For retail investors planning to subscribe or track the listing, the moderate oversubscription means allocations may be reasonable but listing gains may be modest.
Conclusion
The PhysicsWallah IPO closing with about 1.8× subscription on final day demonstrates a respectable but not exceptional demand environment. With strong institutional and employee interest but softer retail and NII take-up, the stage is set for a measured market debut. How the company executes post-listing and meets growth expectations will determine whether this IPO case becomes a stronger benchmark in the ed-tech space.
