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PhysicsWallah Soars on Debut, Closes 44% Above IPO Price

Proceeds from the ₹3,480 crore float target offline expansion, lease payments, marketing, with demand led by institutions.

Overview

  • Shares listed at ₹145 on NSE and ₹143.10 on BSE versus the ₹109 issue price, touched an intraday high near ₹162, and ended the session up about 44% with market value around ₹44,000 crore.
  • The IPO comprised a ₹3,100 crore fresh issue and a ₹380 crore offer for sale by co-founders Alakh Pandey and Prateek Maheshwari, reducing promoter holding to roughly 72% post-issue.
  • Overall subscription was modest at about 1.8–1.9 times, driven by Qualified Institutional Buyers at roughly 2.7–2.9 times, with weaker Non-Institutional participation and strong employee interest.
  • Pre-listing grey market signals pointed to gains of roughly 7–13%, yet the stock’s 33% listing premium and stronger close far exceeded those indications.
  • Company filings earmark about ₹710 crore for marketing, ₹548 crore for lease payments, and ₹460 crore for fit-outs, alongside investment in subsidiary Xylem, underscoring an asset-heavy offline push that analysts say could pressure profitability.