PhysicsWallah share price jumps 33 per cent at listing: What's in store for the edtech firm?

PhysicsWallah made a strong stock market entry with a 33 per cent premium over its issue price, backed by solid investor interest and a robust debut on the NSE and BSE

physicswallah-ipo - 1 Pic credits | NSE

Showcasing an exemplary performance on the stock market, PhysicsWallah has finally debuted with a 33 per cent premium for the allotted shareholders. 

The stock was listed at Rs 145 on the NSE and Rs 143.10 on the BSE, above the IPO price of Rs 109. The initial public offering, which was officially kick-started on November 11, accepted submissions from interested investors till November 13. 

Investment details:

Investors were informed about the shares allotment on November 14, and the listing of shares took place on November 18. The minimum investment to apply for a lot of 17 shares was Rs 14,111. 

Post-listing, the share price of PhysicsWallah stock touched a high of Rs 161.99. At 1.25 pm, the stock was traded at Rs 151.30, with a nearly 5 per cent surge after listing of shares. 

As per the official website of the National Stock Exchange (NSE), PhysicsWallah IPO was subscribed a total of 1.81 times, with the major subscription coming from Qualified Institutional Buyers at 2.70 times. Non Institutional Investors subscribed 0.48 times and Retail Individual Investors subscribed 1.06 times. 

The IPO consists of both a fresh issue of shares and an offer for sale (OFS). Proceeds from the OFS will go to the respective selling shareholders.

The edtech unicorn provides test preparation and upskilling courses. Prayagraj-born Alakh Pandey had started the YouTube channel targeting those who wanted to take the IIT and medical entrance exams, but couldn’t afford expensive coaching.

Road ahead:

Discussions are going fresh among shareholders if they should buy, sell, or hold on to the stocks. 

“As of today, it’s an overpriced issue. Whether it will be a long-term buy, only time will tell. More importantly, after being listed, they need to watch out for their performance when they declare quarterly numbers. You need to understand – selling the issue, talking of the future in a veiled manner, and relying on the past is much easier than when a stock has listed. There is no place to hide after that,” said market veteran Arun Kejriwal to Financial Express. 

For more information, please consult a stock market expert.

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