PhysicsWallah Climbs 42% on IPO Day — What’s Driving the Surge

PhysicsWallah’s stock made a spectacular debut. Priced at ₹109 per share for its IPO, shares closed at ₹155.24 on day one — a roughly 42 per cent gain for investors who got in at the offering. What’s behind this eye-catching rally, especially when broader markets were under pressure?

First, the company clearly struck a chord with its backers. The IPO raised ₹3,480 crore, comprising a ₹3,100 crore fresh issue and a ₹380 crore offer-for-sale by its founders. Among anchor investors, prominent names such as ICICI Prudential, Kotak, Goldman Sachs, Franklin Templeton, Fidelity, and Aditya Birla Sun Life demonstrated strong support.

Second, market demand proved robust. The IPO was subscribed 1.81 times overall. Qualified institutional buyers (QIBs) led the charge, showing especially strong demand. This institutional backing helped deliver a day-one jump well above analyst expectations, which had predicted a more modest double-digit premium.

Third, investors appear to believe in PhysicsWallah’s hybrid model. Funds raised will support the expansion of its offline and hybrid coaching centres, investment in cloud infrastructure, and the growth of its subsidiary businesses. From a financials perspective, the company has demonstrated strong topline momentum (revenue of ₹2,886 crore in FY25) along with rapidly narrowing losses.

Finally, there’s a compelling psychological dynamic: PhysicsWallah represents a new-age, homegrown edtech success, going public just as investor appetite for growth and digital-first companies rebounds.

For IPO investors, the 42 per cent listing returns were undoubtedly compelling. For the company, this powerful listing provides not just capital, but also validation. Whether you choose to hold or take some profit may depend on how much you buy into its long-term vision versus short-term momentum.