PhysicsWallah IPO: Anchor Round Attracts Over Rs 1,500 Crore, Led by Mutual Funds
Mutual funds have emerged as the largest investors in the pre-IPO anchor round of PhysicsWallah Ltd., subscribing to more than half of the allocated shares. The ed-tech company, which aims to raise up to Rs 3,100 crore through its initial public offering (IPO), has allotted 14,33,80,733 shares at Rs 109 apiece to 57 entities, raising Rs 1,560 crore in the process.
A total of 14 mutual funds subscribed to the anchor round through 35 schemes, representing 55% of the anchor allocation. These mutual funds include ICICI Prudential, Motilal Oswal, Tata Mutual Fund, Edelweiss, Aditya Birla Sun Life, and Kotak Mutual Fund.
Foreign Investors Participate in Anchor Round
American investment management giant Capital Group secured 9.9% of the anchor book issue through its affiliate Smallcap World Fund, Inc. Other marquee foreign investors in the pre-IPO fundraise include Goldman Sachs, Fidelity, Abu Dhabi Investment Council, and PineBridge Investments LLC.
IPO Details and Utilization of Proceeds
The mainboard IPO of PhysicsWallah comprises a fresh issue of 28.44 crore shares, valued at Rs 3,100 crore, and an offer-for-sale (OFS) of 3.49 crore shares, amounting to Rs 380 crore. The IPO price band has been fixed at Rs 103-Rs 109 per share, with retail investors required to apply for at least a single lot size of 137 shares, amounting to a minimum investment of Rs 14,933 at the upper limit of the issue price.
PhysicsWallah, which started as a YouTube channel, is an Indian ed-tech company that offers affordable and comprehensive educational courses primarily for competitive examinations and professional upskilling. The company plans to utilize the proceeds from the fresh issue for various purposes, including Rs 710 crore for marketing initiatives, Rs 548 crore for lease payments of existing identified offline and hybrid centers operated by the company, Rs 460 crore for capital expenditure for fit-outs of new offline and hybrid centers, and Rs 471 crore for investment in subsidiary Xylem Learning Pvt.
Grey Market Premium and Expected Listing Price
The latest grey market premium (GMP) for the PhysicsWallah IPO stood at Rs 3, with an upper price band of Rs 109 per share. The estimated listing price is likely to be Rs 112, as per Investorgain, implying an expected listing gain of 3% per share for the PhysicsWallah IPO investors. However, it is essential to note that GMP does not represent official data and is based on speculation.
For investors looking to apply for the PhysicsWallah IPO, it is crucial to assess the company’s financials, growth prospects, and industry trends before making an informed decision. Additionally, investors can visit our website for more information on IPO news, stock market updates, and investment strategies to stay ahead in the Indian stock market.