PhysicsWallah IPO: GMP crawls, so does subscription levels | Check details here

Kolkata: The Rs 3,480-crore PhysicsWallah IPO has been in the news for being the public issue from the first true-blue edtech company to hit D street. However, the experience on the first day of the bidding process left much to be desired. The subscription level was quite tepid. At the end of day one, PhysicsWallah IPO was subscribed 0.08 times overall -- 0.36 times in the retail category, 0.00 times in QIB (Ex Anchor) category and 0.03 times in the NII category.

However, the anchor investors were quite hopeful about the prospect of the company. The anchor round witnessed participation from 57 funds, the list of which includes names such as Goldman Sachs, Fidelity, Templeton, ICICI Prudential Mutual Fund (MF), Kotak Mahindra MF, Nippon India MF, Aditya Birla Sun Life, Motilal Oswal MF, Tata MF and DSP MF. The company informed the stock exchanges that it was able to place 14.33 crore equity shares at a price of Rs 109 per share, raising a total of Rs 1,562.85 crore.

PhysicsWallah IPO GMP mirrored the concern of the investors. According to investorgain, the GMP in early morning of November 12, the second day of bidding process, stood at Rs 1.50 -- half of what was recorded at the same time on No 11. At this level, the percentage gain signalled by the GMP was is 1.38%. The GMP has been at a very low level all through -- it was at Rs 5 on November 6. However, it must be remembered that GMP is only an unofficial gauge that is highly volatile and does not guarantee anything — listing gain or loss.

Issue size: Rs 3,480.00 crore

IPO closes: Nov 13

Price band: Rs 103-109

GMP (Early morning of Nov 12): Rs 1.50

Min lot size (for retail investors): 137

Min application amount: Rs 14,933

Allotment date: Nov 14

Refund Date: Nov 17

Listing date: Nov 18

Lead merchant: Kotak Mahindra Capital

Registrar: MUFG Intime India

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SBI Securities and Angel One have flagged a few risks of the public issue. SBI Securities said the company’s success critically depends on attracting talented teachers and retaining them. Angel One has said that rapid offline expansion presents a challenge. Agencies also flagged continued losses and uncertain profitability. The curriculum is continuously updated and teaching/testing methods need to be constantly upgraded or modified, which is also a challenge to the edtech which has to constantly alter study materials. PhysicsWallah also seems to be is critically dependent on its two founders Alakh Pandey and Prateek Boob, who steer the overall business health and crafting strategies and planning innovation.