PhysicsWallah Raises ₹1,562.85 Cr From 57 Anchor Investors Ahead of IPO

The PhysicsWallah training company limited (PW) has raised ₹1,562.85 crore from 57 anchor investors ahead of its IPO by allotting 14.33 crore equity shares at ₹109 per share – the highest end of its price band. The strength of the anchor round shows a huge appetite from the investors, attracting participation from prominent domestic mutual funds along with major global asset managers.

According to the company’s BSE filing, PhysicsWallah allotted 143,380,733 equity shares at ₹109 per share (face value ₹1) to anchor investors, mobilising ₹1,562.85 crore. Of this, 7.95 crore shares (55.48%) went to 14 domestic mutual funds through 35 schemes.

Prominent domestic participants included ICICI Prudential MF, Kotak MF, Nippon MF, Aditya Birla Sun Life MF, DSP MF, 360 ONE, Motilal Oswal MF, Tata MF, Bharti AXA MF, Edelweiss MF, and Canara Robeco MF.

The anchor book also had a healthy international mix with contributions from, among others, Capital Research, Goldman Sachs Asset Management (GSAM), Fidelity, Franklin Templeton Global, Eastspring Investments, PineBridge, and White Oak Capital.

Market watchers note that this wide-ranging investor interest underscores PhysicsWallah’s growing credibility in the edtech and hybrid learning space — once dominated by venture-backed peers now grappling with profitability and restructuring.

IPO details and structure

The total IPO size aggregates to ₹3,480 crore, comprising a fresh issue of ₹3,100 crore and an offer for sale (OFS) of ₹380 crore. The share price band for the IPO stands set at a price of ₹103-₹109 per share, with the price being available to eligible employees at a discount of ₹10 per share. Minimum applications can be for 137 equity shares, which can be bid for in multiples thereafter.

The IPO bidding window will be open from Tuesday, November 11, 2025, to Thursday, November 13, 2025.
The issue is managed by Kotak Mahindra Capital, J.P. Morgan India, Goldman Sachs (India) Securities, and Axis Capital as the lead book-running managers.

Here is the stock exchange notification as well as the anchor note:

https://www.bseindia.com/markets/MarketInfo/DownloadAttach.aspx?id=20251110-57&attachedId=f778380b-e39b-4da6-8635-82c

Pre-IPO momentum

As per the company’s red herring prospectus (RHP), Think Investments, a global investment firm, infused over ₹136 crore in a pre-IPO round, purchasing shares at ₹127 apiece. The round was part of the company’s strategy to diversify its institutional shareholder base before listing.

On the upper end of the price band, PhysicsWallah is putting the market value for itself at approximately ₹31,169 crore (~$3.5 billion), which is up to 25 per cent higher than the previous round and about 10.5x its FY25 revenue.

Application of amounts raised: Offline expansion, brand building, and tech infra

Of the total IPO proceeds, PhysicsWallah intends to invest ₹1,088 crore (35%) in offline expansion plans for new coaching centres and leases for rental property operations. Of the remaining, ₹710 crore will go towards advertising and brand building, signalling a renewed focus on national reach and hybrid delivery.

The rest of the funds will be channelled into tech investments, improving teachers' skills, and likely acquisitions of regional markets.This offline plan might be beneficial when it is possible to capture entry into tier-2 and tier-3 cities where classroom enrolments continue to accelerate.

Snapshot of finances and growth metrics

For Q1 FY26, PhysicsWallah recorded a 33% year-on-year increase in operating revenue to ₹847 crore as of FY26, while its net loss escalated by 78% over the year earlier to ₹125.5 crore, mainly due to a hefty outlay on offline infrastructure.
During the quarter, PW’s offline business overtook its online segment in revenue contribution—driven by the launch of 105 new centres across cities including Akola, Muzaffarpur, Dhanbad, and Bathinda.

The company spent ₹418.4 crore in Q1 FY26 on setting up physical centres, compared to ₹377.7 crore for the entire FY25.The economics highlight a shift toward high-value, capital-intensive operations that could yield long-term brand and margin advantages.

PhysicsWallah’s IPO signals more than a capital event — it marks a maturing phase for Indian edtech. As most peers recalibrate business models, PW’s bet on a hybrid model reflects a confidence in physical classroom resilience backed by digital integration.

For investors, the attraction lies in its strong brand equity, diversified learning verticals, and expanding offline network that anchors predictable revenue streams. However, profitability pressure from rapid physical expansion remains a key factor to monitor post-listing.

Considerations: 

• Investor response and subscription levels during IPO bidding.
• Execution of offline centre rollout and its impact on unit economics.
• Marketing ROI from ₹710 crore brand spend.
• Margin trends and breakeven timelines post-expansion.

PhysicsWallah’s robust anchor round and diverse investor participation underline confidence in its hybrid education model. With funds earmarked for offline expansion and brand building, the company’s IPO will test whether public markets share its long-term conviction in India’s evolving edtech landscape.