The wait is almost over. Edtech unicorn PhysicsWallah, founded by the well-known teacher Alakh Pandey, is all set to hit the primary market next week.
The company’s IPO will open for subscription on November 11. But before you decide to bid, here are seven key details to keep in mind about the PhysicsWallah IPO.
PhysicsWallah IPO: Size and price band
PhysicsWallah aims to raise Rs 3,480 crore through its maiden public offering. The company has fixed the price band at Rs 103–109 per share.
The issue includes a fresh share sale worth Rs 3,100 crore and an offer for sale (OFS) component of Rs 380 crore, where promoters Alakh Pandey and Prateek Boob will offload part of their holdings.
PhysicsWallah IPO: Subscription dates and listing timeline
The IPO will open for public subscription on Tuesday, November 11, and close on Thursday, November 14.
The anchor book will open a day earlier on November 10.
After all the bidding process, the share allotment is likely to be finalised on November 14. Thereafter, the listing of the company on NSE and BSE is tentatively scheduled for Tuesday, November 18.
PhysicsWallah IPO: Investor quota split
As per the Red Herring Prospectus (RHP), 75% of the issue is reserved for Qualified Institutional Buyers (QIBs), 15% for retail investors, and 10% for Non-Institutional Investors (NIIs).
PhysicsWallah IPO: What GMP indicates
In the grey market, unlisted shares of PhysicsWallah are trading around Rs 118, showing a premium of Rs 9 or roughly 8% over the upper end of the price band.
However, it is important to note that GMP is not an official platform and merely indicates market sentiment.The actual listing price can be significantly different.
PhysicsWallah IPO: Minimum investment and lot size
Retail investors can apply for a minimum of one lot, which consists of 137 shares. At the upper price band, that means an initial investment of around Rs 14,933. Bids can be made in multiples of one lot thereafter.
PhysicsWallah IPO: Fund utilisation
PhysicsWallah plans to use a large portion of the fresh issue proceeds to expand and strengthen its offline and hybrid learning centres. Around Rs 460 crore will go towards setting up new centres, while Rs 548 crore is earmarked for lease payments for existing ones.
The company also intends to invest in subsidiaries such as Xylem Learning and Utkarsh Classes, spend on marketing, server and cloud infrastructure, and even increase its stake in Utkarsh Classes.
PhysicsWallah IPO: Lead managers and registrar
The IPO is being managed by a consortium of big investment banks. These include Kotak Mahindra Capital, JP Morgan India, Goldman Sachs India, and Axis Capital. The registrar for the issue is MUFG Intime India.