New Delhi, November 2025 — Physics Wallah, one of India’s fastest‑growing edtech companies, made headlines with its initial public offering (IPO). The stock opened at a 33% premium to its issue price, signaling strong investor interest. Yet, within hours of listing, the excitement faded as shares began to slide. This pattern has raised questions about why a company with such a celebrated debut lost momentum so quickly.
The Debut: A Promising Start
The IPO was priced at ₹109 per share, and on listing day, Physics Wallah opened at ₹145, delivering immediate gains to investors. For a new‑age tech company, this was seen as a healthy start, especially given the cautious mood around edtech and startup IPOs. The strong debut reflected optimism about Physics Wallah’s brand recognition, its large student base, and its rapid expansion into offline learning centers.
Profit‑Booking by Early Investors
One of the most immediate reasons for the decline was profit‑booking. Many retail investors who received allotments sold their shares right after listing to lock in quick gains. This is a common trend in IPOs that list at a premium. While it ensures short‑term profits for those investors, it often creates downward pressure on the stock price in the hours and days following the debut.
Subscription Levels Showed Weakness
Despite the premium listing, the IPO’s subscription data revealed a more cautious picture. The overall subscription was just 1.8 times, far lower than blockbuster IPOs that often see oversubscription in double digits. The non‑institutional investor (NII) category was subscribed only 0.48 times, showing muted interest from high‑net‑worth individuals. Institutional investors did show stronger participation, but the weak retail and NII demand suggested limited confidence in long‑term growth.
Sector Challenges: Edtech’s Post‑Pandemic Reality
Physics Wallah’s IPO came at a time when the edtech sector was facing structural challenges. During the pandemic, online learning platforms saw explosive growth. But as schools and coaching centers reopened, demand for purely digital education slowed. Companies like Physics Wallah have responded by expanding into offline centers, but this strategy comes with higher costs — rent, infrastructure, and faculty salaries. Investors remain cautious about whether edtech firms can sustain profitability while balancing online and offline models.
Valuation Concerns
Another factor weighing on the stock was valuation. Analysts noted that Physics Wallah’s IPO pricing was aggressive compared to peers in the education and technology space. While the company has a strong brand and millions of registered users, questions remain about whether its revenue growth and profitability can justify such valuations. The market’s skepticism was reflected in the subdued subscription levels and the quick sell‑off after listing.
Market Sentiment Toward New‑Age IPOs
Physics Wallah’s listing also coincided with broader market caution toward “new‑age” tech IPOs. Several startups in sectors like fintech, food delivery, and edtech have struggled post‑listing, with shares trading below issue price months after debut. This trend has made investors wary of over‑valued IPOs, even when the company has strong fundamentals. Physics Wallah’s initial slip fits into this larger narrative of skepticism around startup valuations.
The Bigger Picture
It is important to note that Physics Wallah’s IPO was not a failure. The company delivered healthy listing gains, and its brand continues to enjoy strong recognition among students. The decline after listing reflects short‑term profit‑taking and cautious sentiment rather than a collapse in fundamentals. Long‑term performance will depend on how effectively Physics Wallah manages its offline expansion, controls costs, and sustains student growth.
Challenges Ahead
Looking forward, Physics Wallah faces several challenges:
- Balancing Online and Offline Models: Ensuring profitability while expanding physical centers.
- Competition: Rivals like BYJU’S, Unacademy, and Vedantu continue to fight for market share.
- Investor Confidence: Convincing the market that its growth story is sustainable.
- Sector Perception: Overcoming skepticism about edtech’s long‑term viability.
Conclusion
Physics Wallah’s IPO story is a reminder of the complexities of India’s startup ecosystem. A strong debut can quickly be overshadowed by profit‑booking, cautious subscription, and sector‑specific challenges. For investors, the lesson is clear: listing gains are attractive, but long‑term value depends on fundamentals. For Physics Wallah, the road ahead will be defined by its ability to prove that edtech can thrive in a post‑pandemic world — balancing innovation, affordability, and profitability.