PhysicsWallah IPO: The IPO of the country’s well-known online education platform Physicswallah is going to open next week on 11th November. To launch this IPO of Rs 3480 crore, Red Herring Prospectus (RHP) has been submitted to the Registrar of Companies. Anchor investors will be able to bid for this on November 10. Bets can be placed in the issue till November 13. Shares will be allotted by 14th November, while from 18th November the shares will be listed on BSE and NSE.
Including both fresh issue and OFS
Let us tell you that Physicswala is an education platform, which provides preparation for competitive exams both online and offline. The company’s IPO has both fresh issue and offer-for-sale. New shares worth Rs 3,100 crore will be issued in this issue, while promoters like Alakh Pandey and Prateek Boob will sell shares worth Rs 380 crore under the OFS window.
According to media reports, Alakh Pandey and Prateek Boob will sell shares worth Rs 190 crore through OFS. Both of them currently have 40.31 percent stake in the company. This Noida-based company had filed draft papers for the IPO with SEBI in March through the confidential pre-filing route and after getting the green signal from market regulator SEBI in July, the company submitted an updated DRHP in the month of September before submitting the RHP.
What will the company do with the money?
Physicswala has said that out of the amount raised from the IPO, Rs 460.5 crore will be spent on building new offline and hybrid centers and Rs 548.3 crore will be spent on lease payments. Apart from this, Rs 47.2 crore will also be invested in the subsidiary company Xylem Learning. Of these, Rs 31.6 crore are spent on new centers and Rs 15.5 crore are spent on lease payments and hostels.
Rs 33.7 crore will be given to Utkarsh Classes and Edutech for lease payment of its centres. Apart from this, Rs 200.1 crore is to be spent for server and cloud infrastructure, Rs 710 crore in marketing and Rs 26.5 crore to buy additional stake in Utkarsh Classes.
The journey started in 2020
Alakh Pandey and Prateek Maheshwari started Physicswala in 2020 as an edtech platform. Firstly, he provides preparation for NEET, JEE Mains, NCERT and BITSAT through his YouTube channel. During that time, previous years’ question papers of these exams were made available to help the students so that they could prepare accordingly. Today the number of its registered students is more than 35 lakhs. It has more than 78 lakh subscribers on YouTube. The rating of the app is also 4.8.
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