New Delhi. The IPO of edtech unicorn Physicswala opened on Tuesday. The issue will close on 13 November. There was not much enthusiasm among investors regarding the IPO on the first day and it was filled only 7 percent. According to NSE data, bids were received for 1,31,22,682 shares in the initial share sale worth Rs 3,480 crore, while the number of shares offered was 18,62,04,143. This shows that investors are investing money very cautiously. Physicswala IPO is not making any splash in the gray market and is trading at a very low premium.
Retail investors invested the most money in Physicswala IPO on the first day and the share reserved for them was subscribed 33 percent. While the quota of non-institutional investors received two per cent subscription, no participation has been seen so far in the category of qualified institutional buyers (QIBs). Physicswala has raised Rs 1,563 crore from anchor investors.
Physicswala IPO Price Band
Physicswala IPO includes a fresh issue of ₹3,100 crore and an offer for sale of ₹380 crore. Company promoters Alakh Pandey and Prateek Boob are selling their shares in the offer for sale. The price band of the issue has been fixed between ₹103 to ₹109. There are 137 shares in a law. It is mandatory for retail investors to bid for at least one lot. According to the upper price band, they will have to invest at least ₹ 14,933. The maximum lot size for retail is 13. The listing of the IPO will take place on November 18.
Physicswala IPO GMP
The unlisted shares of Physicswala IPO have not been able to make much of a splash in the gray market. According to IPOwatch.in, a gray market monitoring website, currently the GMP of Physicswala IPO is running at Rs 4. This indicates that investors may get modest listing gains. However, it is not necessary that the listing should be as per GMP. This is only a guess.
Should money be invested in Physicswala IPO?
SBI Securities gave Physicswala IPO a “Neutral” rating. The brokerage said that at the upper price band of Rs 109, the EV/sales multiple based on post-issue capital is 9.7x, which appears to be fair value. The company has increased its revenue significantly, but profitability is still under pressure.
Brokerage Anand Rathi has advised to buy Physicswala IPO. The brokerage praised Physicswala’s hybrid model, which combines the scalability of digital teaching with the reach of physical centres. The brokerage says that the IPO seems priced perfectly, but there is good growth potential in the long term.
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