PhysicsWallah stock slide: Shares sink for third day as Rs 8,600 crore wiped out since debut – what's next – The Times of India

PhysicsWallah’s sharp post-listing rally has reversed just as quickly, with the stock falling for the third straight session and wiping out significant investor wealth. Shares skidded over 9% to Rs 130.65 on the BSE on Thursday, dragging the company’s market capitalisation below Rs 37,700 crore and erasing nearly Rs 8,609 crore since listing.The edtech firm debuted on November 18 with a 33% premium at Rs 145 on the NSE and Rs 143.10 on the BSE, and closed its first day at Rs 156.49, nearly 44% above its IPO price of Rs 109. The exuberance, however, faded quickly. On the second trading day, the stock dropped almost 11% intraday to Rs 138.54 before ending 8% lower at Rs 143.28, and selling pressure intensified on Thursday.Despite the slump, shares still trade over 20% above the IPO price, as per ET. At its debut-day peak, PhysicsWallah was valued at nearly Rs 46,300 crore, a figure that has now shrunk sharply amid profit-taking, valuation concerns and caution around new-age listings.Market experts say the company’s fundamentals remain a draw. Shivani Nyati, head of wealth at Swastika Investmart, was quoted by ET as saying that investor enthusiasm during listing stemmed from PhysicsWallah’s “strong brand recall, affordable test-prep offerings, and its fast-growing hybrid model through both online platforms and PW Pathshala centers.” She said the edtech player benefits from a loyal student base, scalable digital content engine and an expanding offline footprint, though she cautioned that competition from larger coaching and edtech rivals, regulatory uncertainty and profitability pressures are “key risks”.On strategy, Nyati said, “Allottees may book partial profits and hold the remaining shares for medium-term growth with SL at Rs 130.”PhysicsWallah’s Rs 3,481 crore IPO — one of the largest from India’s edtech sector — comprised a Rs 3,100.71 crore fresh issue and a Rs 380 crore offer for sale, as per ET. The issue was subscribed 1.92 times, led by strong QIB demand at 2.86 times, while retail subscription stood at 1.14 times. Employees bid 3.71 times, supported by a Rs 10 discount.The company raised Rs 1,563 crore from anchor investors on November 10, with the 14.33 crore-share anchor book locked in until mid-December and mid-February, depending on tranche.Founded by Alakh Pandey and Prateek Boob, PhysicsWallah has grown from a YouTube channel into an edtech major with 13.7 million subscribers, 4.46 million paid users and 303 centres as of June 2025. The firm posted a 51% rise in FY25 revenue to Rs 3,039 crore and a Rs 243 crore net profit, reversing a Rs 1,131 crore FY24 loss, though it reported a Rs 127 crore loss in Q1 FY26 and remains cumulatively loss-making.Funds from the IPO will be used for offline expansion, technology upgrades, cloud capacity, infrastructure, marketing and acquisitions.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)