PhysicsWallah raises stake in Utkarsh Classes to 75.5%

Edtech firm PhysicsWallah has approved the third tranche of its investment in subsidiary Utkarsh Classes & Edutech Private Limited, taking its stake to 75.50%.

In a regulatory disclosure on Monday, the company said its audit committee cleared the acquisition of 25,599 equity shares from existing shareholders. The transaction will raise PhysicsWallah’s holding from 63.25% to 75.50%.

The two firms have been operating under a long-term strategic joint venture since early 2023.

The acquisition is part of a multi-tranche Share Acquisition Terms Agreement (SATA) signed in February 2023, under which PhysicsWallah plans to acquire up to 100% ownership in Utkarsh Classes. The third tranche will be completed through a cash payment of Rs 26.50 crore. This includes the purchase of shares with a face value of Rs 10 each, acquired at a premium of Rs 10,342 per share.

Founded in November 2018, Utkarsh Classes operates in the education segment, running coaching centres and offering educational content and course materials. The company reported a turnover of Rs 168.96 crore in FY25, Rs 146.97 crore in FY24, and Rs 158.92 crore in FY23.

PhysicsWallah expects to complete the acquisition of the remaining stake by March 2028.

The development comes soon after PhysicsWallah public listing. The firm listed at Rs 145 on the stock exchanges, a premium of around 33% over the IPO price. The company raised about Rs 3,480 crore through the public issue, which included a fresh issue and an offer for sale.