Physics Wallah IPO is going to open on 11th November.
Edutech company ‘Physicswala’ is preparing to launch its IPO on 11th November. The company aims to raise Rs 3,480 crore through this to carry forward its expansion plans. According to the prospectus submitted with market regulator SEBI on Wednesday, applications for the company’s public issue can be made till November 13. Shares will be allotted to anchor investors on November 10. The IPO includes a fresh issue of equity shares worth Rs 3,100 crore and an offer for sale (OFS) of shares worth up to Rs 380 crore by the promoters.
How much stake will the promoters sell?
Both the promoters of the company – Alakh Pandey and Prateek Boob will sell shares worth Rs 190 crore through OFS during this period. Currently, both hold 40.31 percent stake in the company. Noida-based Physicswala had filed documents with SEBI for the IPO through the confidential route in March and got the market regulator’s approval in July. The company chose the confidential pre-filing route for the IPO, which allowed it to hold off on public disclosure of IPO details until the later stages.
Where will the money be spent?
Physicswala said that out of the proceeds from the issue of new shares, Rs 460.5 crore will be spent on setting up new offline and hybrid learning centres. Whereas Rs 548.3 crore will be used to pay the lease amount of the existing centres. Apart from this, the company will invest Rs 47.2 crore in its subsidiary Xylem Learning. This includes Rs 31.6 crore for new centers and payment of lease amount and Rs 15.5 crore for hostels.
How much did the revenue increase?
Westbridge Capital, Hornbill and GSV Ventures-backed Physicswala’s loss narrowed to Rs 243 crore in FY 2024-25 from Rs 1,131 crore a year earlier. However, the company’s revenue increased to Rs 2,887 crore in the last financial year, from Rs 1,941 crore a year ago. The company has appointed Kotak Mahindra Capital Company, JP Morgan India, Goldman Sachs (India) Securities and Axis Capital to manage its public issue.