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India’s edtech firm PhysicsWallah made a strong Dalal Street debut on Tuesday, with the stock listing at a 33% premium to the issue price. This clearly signals renewed investor interest in the digital learning sector despite broader market volatility. The stock opened at Rs 145 on the NSE and Rs 143.10 on the BSE, against the IPO price of Rs 109.
The company managed to pull off a great debut with fewer than anticipated subscriptions during the three-day offering period. The total subscription was 1.81 times, where the retail moment was more than the institutional one.
The market response on listing day implies that the investors were ready to disregard the careful demand and to place their bets on the company’s fundamentals and brand recognition.
PhysicsWallah, founded by popular YouTuber-turned-entrepreneur Alakh Pandey, has built a large and loyal student base on low-cost online learning and hybrid centres. Strong brand recall combined with steady revenue growth likely helped the company attract robust debut-day interest, analysts said.
PhysicsWallah stock price surged further to touch a high of Rs. 158.38, marking gains of nearly 45% over the issue price. According to a report from Reuters, the rally pushed the company’s valuation to around $ 5.1 billion.
Market participants attributed the sharp upward movement to a mix of retail enthusiasm, positive sentiment toward profitable edtech players, and expectations of strong expansion momentum in the hybrid coaching model.
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Listing in this context is seen as a potential sentiment enhancer for the Indian ed-tech space. The sector has already endured a long period without funding, layoffs, and regulatory stress in recent years.
While big-name rivals are facing difficulties, PhysicsWallah’s smooth arrival into the public market tells a different story: the one of strong unit economics and slow growth.
In the same vein, however, analysts point out that a heavy listing premium will increase the risks associated with valuation. The company now needs to achieve consistent growth, tackle competitive pressures, and scale its offline centres efficiently to justify market expectations.
