Physicswallah files updated DRHP for Rs 3,820 Cr IPO

Edtech unicorn PhysicsWallah has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise Rs 3,820 crore through initial public offer.

The IPO will comprise a fresh issue of equity shares worth Rs 3,100 crore and an offer for sale (OFS) of Rs 720 crore by PhysicsWallah’s co-founders, Alakh Pandey and Prateek Boob, who will each offload shares worth Rs 360 crore.

This development comes shortly after the Noida-based edtech firm received SEBI’s approval for its confidential IPO papers last month.

The IPO will be managed by Kotak, JP Morgan, Goldman Sachs and Axis Capital, while MUFG Intime will act as registrar.

From the fresh issue proceeds, the WestBridge-backed company will allocate Rs 460.5 crore for capital expenditure on fit-outs of new offline and hybrid centers, and Rs 5,483 crore towards lease payments for its existing centers.

The company will use Rs 33.7 crore towards lease payments for Utkarsh Classes, its subsidiary operating existing offline centres; Rs 26.5 crore to acquire an additional stake in Utkarsh Classes; Rs 47.16 crore for another subsidiary, Xylem Learning Pvt. Ltd.; and Rs 15.5 crore towards lease payments for Xylem’s existing offline centres.

The company will also allocate Rs 200 crore for server and cloud-related infrastructure, while it will use the largest portion of the proceeds, Rs 710 crore, for marketing initiatives.

The balance amount will be set aside for future acquisitions and general corporate purposes.

As on the date of DRHP, co-founders Alakh Pandey and Prateek Boob hold the largest stakes in the company at 40.35% each, followed by WestBridge Capital with 7.8%, while Hornbill Capital, GSV Ventures, and Lightspeed hold 4.42%, 2.85%, and 1.79%, respectively.

On the financial front, PhysicsWallah reported a 49% rise in operating revenue to Rs 2,886.6 crore in FY25 from Rs 1,940.7 crore in FY24. During the same period, the company also reduced its losses by 79% to Rs 243 crore.

Last Friday, PhysicsWallah acquired a minority stake in UPSC coaching institute Sarrthi IAS, Entrackr exclusively reported the development.