PhysicsWallah made a good market debut on Tuesday with its stock trading sharply higher than the issue price. It is listed at 145 in the NSE and Rs 143.10 in the BSE. This showed a 33% markup on the issue price of Rs 109. The listing performed better than expected since the grey market premium had indicated that there would be a minor increase before the debut. The players in the market observed that there was a stable investor confidence in the company despite the low number of subscriptions in the process of the IPO.
The technology company that deals with education has established a good market in the test-prep industry in India. The company started as a YouTube channel, which was founded by Alakh Pandey. It has since grown to be a hybrid learning network, comprising digital platforms and offline centres. PhysicsWallah currently provides JEE, NEET, AND UPSC coaching in addition to competitive exams. The site boasts of 13.7 million YouTube subscribers and has more than 300 hybrid and offline centres throughout the nation.
PhysicsWallah IPO had an overall subscription of 1.92 times. The retail segment had a subscription of 1.14 times. The institutional buyers subscribed 2.86 times, and the non-institutional investors subscribed 0.51 times. Even though the subscription levels have not been very high, analysts indicated that institutional participation was a sign of trust in the business model and growth direction of the company.
The IPO values were fixed between 103 and 109 a share. A minimum investment of Rs 14,933 was needed to purchase the lot size of 137 shares, which was at the upper band. The small non-institutional investors had to pay a minimum amount of Rs 2,09,062. The minimum requirement of big non-institutional investors was Rs 10,00,511.
PhysicsWallah is one of the top five edtech companies in India in terms of revenue. Analysts explained its upward trend by the low pricing, good digital coverage, and a hybrid business model, which is free online content coupled with paid courses and offline centres. Such a design will enable the company to access the students of Tier-2 and Tier-3 cities, where the demand for systematic coaching is still on the increase.
The IPO has been priced higher, indicating that the market has a positive disposition towards well-established education brands that have a non-questionable revenue base. The successful history of the company is also a feature in an industry where multiple edtech companies have had poor performances in the past years.