Edtech major PhysicsWallah on Thursday announced a price band of Rs 103–109 per share for its upcoming initial public offering (IPO). The company’s Rs 3,480-crore maiden IPO will open on November 11 and close on November 14.
The issue comprises a fresh issue of Rs 3,100 crore and an offer for sale (OFS) worth Rs 380 crore by co-founders Alakh Pandey and Prateek Maheshwari, who will each offload shares worth Rs 190 crore. Notably, the Noida-based firm has reduced its OFS size from Rs 720 crore, as stated in its draft prospectus—meaning that around 90% of the issue now consists of primary capital.
“We made a conscious call to cut our secondaries. Since 80% of the company is owned by us, and retail buyers will be the same middle-class India and students’ families we serve, we wanted to leave significant value on the table,” Pandey said on Thursday.
PhysicsWallah’s financial performance has strengthened significantly, with operating revenue rising 49% to Rs 2,886.6 crore in FY25, up from Rs 1,940.7 crore in FY24, while losses narrowed by 79% to Rs 243 crore over the same period. Over the past two years, the company’s revenue has quadrupled, recording a 97% CAGR from FY23 to FY25.
Although 93% of learners use the online platform, revenue contribution is almost evenly split—52% from online and 48% from offline operations—reflecting the higher average revenue per user (Arpu) in the offline business. The company currently operates around 300 offline centres, having opened 170 new centres in the past two years.
“We have only 7% market share in offline, with 93% still with other players. We are the fifth-largest offline player but the fastest growing,” Pandey added.
From the fresh issue proceeds, PhysicsWallah plans to allocate Rs 710 crore for marketing initiatives, its largest single expense. Another Rs 460.5 crore will be used for fit-outs of new offline and hybrid centres, and Rs 548.3 crore is earmarked for lease payments of existing centres. The company will also invest Rs 200 crore in server and cloud infrastructure, Rs 47.2 crore in subsidiary Xylem Learning, Rs 31.6 crore for new centres, and Rs 15.5 crore for lease payments and hostels.
PhysicsWallah taught 4.5 million students last year, which it claims is 10 times more than the combined average of its next two largest competitors. The company operates in 13 exam categories and claims leadership in seven based on student enrollments, results, and revenue. It has also been building AI-based tools for doubt-solving, tutor training, and other learning enhancements.
The IPO will be managed by Kotak, JP Morgan, Goldman Sachs, and Axis Capital. Since inception, PhysicsWallah has raised $210 million in primary capital. As per the RHP, Pandey and Maheshwari each hold a 40.31% stake, followed by WestBridge Capital (7.8%), Hornbill Capital (4.41%), GSV Ventures (2.85%), and Lightspeed (1.79%). Importantly, none of the existing private equity investors will sell shares in the IPO.
Recently, the company launched an OTT platform priced at Rs 299 per month, featuring 10,000 videos aimed at students who find the Rs 4,000 flagship course unaffordable.
“This is our entry-point app to reach the hinterland of India. If students like this product, they will eventually buy the Rs 4,000 course,” Maheshwari added.