The initial public offering (IPO) of Edtech unicorn PhysicsWallah (PW) closes today, November 13, 2025, with subscription levels reaching approximately 14% so far. The IPO, which opened on November 11, 2025, has seen muted response from investors across all categories.

The IPO comprises a fresh issue of shares worth ₹3,100 crore and an offer for sale (OFS) of shares totaling ₹380 crore from the company's founders, Alakh Pandey and Prateek Boob. Both founders plan to sell shares worth ₹190 crore each through the OFS. The price band for the IPO has been fixed at ₹103 to ₹109 per share, with a market lot size of 137 shares, requiring a minimum investment of ₹14,933 for retail investors.

Subscription levels across investor categories reflect a lukewarm response. As of today, the retail portion has been subscribed 63%, while the Non-Institutional Investors (NII) category has seen 6% subscription. The Qualified Institutional Buyers (QIBs) portion remains largely unsubscribed. On the first day, the IPO saw an overall subscription of 7%, with the retail segment subscribed 33% and the NII category subscribed 2%. The employee segment was subscribed 1.11 times on day 1 and 1.75 times on day 2.

The grey market premium (GMP) for PhysicsWallah shares has seen a decline. The latest GMP stands at ₹1.25 as of November 13, 2025, at 7:00 AM, a sharp drop from earlier estimates. Considering the upper price band of ₹109, the estimated listing price is ₹110.25, implying a potential gain of about 1.15% per share. Market observers note that this GMP indicates a possible listing price of ₹110.25 per share, resulting in an estimated profit of ₹171.25 per lot of 137 shares, if the current GMP sustains. It is important to note that the GMP is speculative and doesn't represent official data. The GMP had earlier reached a high of ₹9 on November 6 and a low of ₹4 on November 10.

Ahead of the IPO, PhysicsWallah raised ₹1,563 crore from 57 anchor investors, including Goldman Sachs and Fidelity, by allotting 14.33 crore equity shares at ₹109 apiece.

PhysicsWallah intends to utilize the IPO proceeds for capital expenditure on new offline and hybrid centers, lease payments for existing centers, investments in subsidiaries such as Xylem Learning and Utkarsh Classes & Edutech, server and cloud infrastructure, marketing initiatives, and acquiring additional shareholding in Utkarsh Classes & Edutech.

PhysicsWallah, founded by Alakh Pandey, offers online and offline test preparation courses for exams such as JEE, NEET, and UPSC, as well as upskilling programs. As of June 30, 2025, the company operated 303 offline centers. It boasts a significant online presence with over 13.7 million YouTube subscribers. For the fiscal year ended March 2025, PhysicsWallah narrowed its losses to ₹243 crore, compared to ₹1,131 crore a year earlier, while revenue climbed to ₹2,887 crore from ₹1,941 crore. However, the company reported a consolidated net loss of Rs 127.01 crore and sales of Rs 847.09 crore for the three months ended on 30th June 2025.

The allotment status for the IPO is expected to be finalized on November 14, 2025, with shares expected to be listed on stock exchanges on November 18, 2025.