PhysicsWallah IPO Struggles at 14% Subscription: Should Retail Investors Subscribe?

PhysicsWallah, one of India’s most recognisable edtech brands, entered the final day of its IPO on Thursday with surprisingly low investor participation. Despite massive brand recall, a profitable operating model, and the backing of prominent anchor investors, subscription numbers tell a different story.

As of the latest update, the IPO has been subscribed only 0.14 times overall, revealing broad investor caution. The retail quota stands at 0.63x, the NII segment at 0.06x, while QIBs have not placed a single bid—a rare sight for a high-profile edtech listing.

Founded by Alakh Pandey, PhysicsWallah rose to prominence through its low-cost hybrid model—free online content supported by affordable offline classes. The company remains among the few profitable players in India’s edtech space, a sector that has otherwise struggled with layoffs, demand slowdown, and poor investor sentiment.

Why the Weak Subscription?

Investor hesitation stems from multiple concerns:

• High valuations relative to peers

• Slowing edtech funding environment

• Operational risks as PhysicsWallah expands offline

• Dependence on founder personality

• Rising faculty attrition in the sector

At a price band of ₹103–₹109, the IPO values the company at an EV/Sales multiple of 9.7x–10.8x, which several analysts believe is rich given current growth visibility.

Analyst Views: Buy, Avoid or Long-Term Only?

Brokerages remain divided on whether the IPO warrants subscription.

InCred Equities – Subscribe (Medium to Long Term)
InCred sees strong growth potential across online and offline verticals. It highlights the company’s ability to monetise its large digital ecosystem and praises its freemium strategy. However, it flags risks including dependence on Alakh Pandey, offline execution challenges, and faculty churn.

SBI Securities – Neutral
SBI believes the IPO is “fairly valued” but not compelling at present. It sees profit pressure and suggests investors wait for listing and subsequent performance before making aggressive purchases.

Anand Rathi – Subscribe (Long Term)
Anand Rathi is more optimistic, arguing that PhysicsWallah is well positioned to scale into new geographies and categories. The firm notes that the hybrid model gives it structural advantages over fully digital competitors.

IPO Structure & Grey Market Signals

• Price band: ₹103–₹109

• Lot size: 137 shares (₹14,933 minimum investment)

• Employee quota: 7.52 lakh shares at ₹10 discount

• Closing date: November 13

• Listing: November 18 on NSE & BSE

The Grey Market Premium (GMP) remains weak at ₹1.25, implying a listing around ₹110.25—barely 1.15% above issue price. Such low GMP suggests muted debut expectations among informal market participants.

What Should Retail Investors Do?

PhysicsWallah has a strong brand, a proven hybrid model, robust digital reach, and consistent revenue growth. Yet, the IPO’s lukewarm subscription highlights concerns about valuation, sector headwinds, and execution risks as the company scales aggressively offline.

Investors with a long-term horizon who believe in the edtech recovery and PhysicsWallah’s unique positioning may consider subscribing. Those seeking short-term listing gains or lower-risk bets may find it safer to wait and watch until post-listing stability emerges.

With QIB participation still missing and overall demand low, the next few hours of bidding will determine whether India’s most-talked-about edtech IPO can turn the tide before closing.