PhysicsWallah IPO Subscribed 9% on Day 2; GMP Indicates Tepid Listing

When the PhysicsWallah IPO opened on November 11, 2025, it carried a big headline. We saw the price band set at ₹103–₹109 per share and the company hoping to raise around ₹3,480 crore. By Day 2, subscriptions remained low, only about 9 % of the issue had been bid for. At the same time, the grey‑market premium (GMP), which gives an early signal of investor sentiment, was modest and trending downward. We’ll walk through who PhysicsWallah is, what the IPO details are, how Day 2 played out, what the GMP suggests, and what this could mean for investors.

About PhysicsWallah

PhysicsWallah Ltd began as a YouTube channel by founder Alakh Pandey in 2016, aimed at students preparing for India’s competitive exams. Over time it grew into a full‑scale edtech business offering online, offline and hybrid courses for exams like JEE, NEET, government job‑preps and more. The company’s positioning: a strong community base, lots of free content to draw in learners, and then paid courses to monetise.
Its revenue grew sharply in FY24, more than doubling with a 161 % increase. In FY25, growth slowed but remained strong at around 49 %, though the company is still loss-making due to expansion costs. So we see a company with strong growth, but also heavy investment and yet to show consistent profitability.

Details of the IPO

Here are the key features of the PhysicsWallah IPO:

• Price band: ₹103 to ₹109 per share.
• Total issue size: about ₹3,480 crore, comprising a fresh issue of ~₹3,100 crore and an offer‑for‑sale (OFS) of ~₹380 crore.
• Lot size: minimum 137 shares per application. At upper band this means minimum investment ~₹14,933.
• Valuation: At the top band, the market cap “implied” is over ₹31,500 crore.
• Timeline: Allotment likely 14 Nov; listing scheduled for 18 Nov on both BSE & NSE.
• Use of funds: The fresh issue proceeds will partly go into offline & hybrid centre expansion, cloud and infrastructure investment, marketing.

Thus, the PhysicsWallah IPO is large, ambitious and marks a milestone for the Indian edtech space.

Day 2 Subscription Performance

On the second day of subscription (Nov 12) things moved slowly.

• By ~11 am, the IPO was subscribed ~9 % of its size.
• On Day 1 it had been ~7 %.
• Retail investors: about 44–47 % of the retail quota had been taken by midday Day 2.
• Non‑Institutional Investors (NIIs): only a small slice (~3–4 %). QIBs (Qualified Institutional Buyers) had barely shown up.
  What does this low subscription indicate?
• First, investor enthusiasm appears muted despite the size and promise of the company.
• Second, institutions are cautious, often they wait until later days, but the slow start still signals risk.
• Third, when participation is low early on, listing upside might shrink, as demand is less sure.

We need to watch how the subscription trend develops in the closing days, but the early signs are not electrifying.

Grey Market Premium (GMP) Analysis

GMP measures how much shares of a company are trading before listing in the grey/unofficial market. It often gives a clue about expected listing gains and investor sentiment.
For PhysicsWallah IPO:

• At one stage, GMP peaked around ~2.75 % premium over issue price (₹109) on Day 2.
• Later in Day 2 the GMP dropped further to ~1.38 % or even ~1.5 %.
• Some sources show GMP at ₹4 per share (~3.66%) earlier but clearly the trend is going down.
  What does this suggest?
• A low and reducing GMP signals weak listing sentiment. Investors may not expect a big pop on listing day.
• It also aligns with the low subscription: demand is not strong enough to push the grey market higher.
• For an IPO of this size and hype, a GMP of under ~3% is modest. Comparatively, high‑demand IPOs often show GMPs of 10–20% or more before listing.

Hence, the GMP for PhysicsWallah IPO hints that the market is cautiously optimistic: there may be listing gains, but they are unlikely to be large.

Potential Outlook and Investor Takeaways

Given all of the above, here are some key considerations for investors thinking about the PhysicsWallah IPO:

• Short‑term listing gains: With subscription low and GMP modest, the listing upside appears limited. Investors should temper expectations of a big “fast gain”.
• Long‑term value: The business has strong growth in the edtech market, a decent brand and multiple revenue streams. If the company executes well, long‑term potential exists.
• Valuation risk: At ~10x EV/sales (or higher) the price band is already aggressive, especially for a company yet to consistently post profits.
• Market & execution risk: The offline expansion ambitions, heavy investments in infrastructure, competition in the edtech space, and dependence on student enrolments all pose risks.
• Strategy advice: If you’re risk‑tolerant and believe in the long‑term story of edtech + hybrid learning, the IPO could be worth considering with a long‑term horizon. If you seek quick listing gains or have low risk tolerance, caution is warranted.

In short: the IPO is interesting, but not a runaway hot pick in the short term.

Conclusion

We’ve seen that the PhysicsWallah IPO opened with promise, but the early subscription numbers and grey‑market signals point to a tepid listing scenario. The company has big ambitions and strong fundamentals in the Indian edtech market, but the market’s reaction so far is cautious. For retail investors, the message is clear: manage your expectations, recognise the long‑term potential, but don’t count on a big instant profit. The listing on November 18 will be important, but what matters even more is how PhysicsWallah executes its growth plan, delivers profitability and competes in a tough sector. With that, we will be watching closely how this IPO shapes up, for the company, for the edtech space, and for investors.

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Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.