The IPO of Physicswala, a well-known online education platform, is scheduled to open next week on November 11. The Red Herring Prospectus (RHP) has been submitted to the Registrar of Companies for the launch of this ₹3,480 crore IPO. Anchor investors will be able to bid on November 10. Bids can be placed in this issue till November 13. The shares will be allotted by November 14 and will be listed on BSE and NSE from November 18.
New issue and OFS included
Physicswala is an education platform that provides preparation for competitive exams through both online and offline medium. The company’s IPO comprises both a new issue and an offer-for-sale. New shares worth ₹3,100 crore will be issued in the issue, while promoters Alakh Pandey and Prateek Boob will sell shares worth ₹380 crore under the OFS window.
According to media reports, Alakh Pandey and Prateek Boob will sell shares worth ₹190 crore through OFS. Both currently hold 40.31% stake in the company. The Noida-based company had filed draft papers for its IPO with Sebi through the confidential pre-filing route in March and after getting the green signal from market regulator Sebi in July, submitted an updated DRHP in September before filing the RHP.
What will the company do with this money?
Physicswala said that of the funds raised from the IPO, ₹460.5 crore will be used to build new offline and hybrid centres, and ₹548.3 crore will be used for lease payments. Additionally, ₹47.2 crore will be invested in subsidiary Xylem Learning. This includes ₹316 million for new centres, lease payments and ₹155 million for hostels. Utkarsh Classes & Edutech will be given ₹337 million to pay for the lease of its centres. Additionally, ₹2001 million will be spent on server and cloud infrastructure, ₹710 million on marketing and ₹265 million to acquire additional stake in Utkarsh Classes.
The journey started in 2020
Alakh Pandey and Pratik Maheshwari launched Physicswala in 2020 as an edtech platform. Initially, it provided preparation for NEET, JEE Main, NCERT and BITSAT exams through its YouTube channel. Previous year question papers of these examinations were made available to the students to help them in their preparation. Today, it has more than 35 lakh registered students and more than 78 lakh YouTube subscribers. The rating of the app is also 4.8.