Why Are PhysicsWallah Shares Experiencing Continued Losses?
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Synopsis
Shares of PhysicsWallah have faced a downturn for three consecutive sessions following its market debut. As investors grapple with this volatility, analysts urge caution in trading strategies. Discover the reasons behind this trend and the company's financial performance in our comprehensive analysis.
Key Takeaways
- PhysicsWallah shares have faced three days of losses.
- Current market cap is Rs 40,490 crore.
- Initial surge of 5 percent was followed by a decline.
- The company saw a 49 percent revenue growth in FY25.
- IPO was subscribed 1.81 times.
Mumbai, Nov 21 (NationPress) The stock of edtech company PhysicsWallah has remained in the negative territory on Friday, marking its third consecutive day of losses post its market introduction.
Market analysts advise traders to exercise a prudent investment approach as the newly listed stock exhibits significant fluctuations.
Throughout the trading session, the stock experienced considerable volatility. It initially rose more than 5 percent to reach Rs 149.59 per share, only to reverse course and fall over 2 percent to Rs 139.07 per share by 1:46 pm.
The company's current market capitalization is Rs 40,490 crore.
This decline follows a pronounced selloff that commenced shortly after the listing. On Tuesday, the company's market cap momentarily fell beneath Rs 35,000 crore, indicating a drop of nearly Rs 12,000 crore from its peak valuation of Rs 46,300 crore achieved on its debut day.
PhysicsWallah made a remarkable debut in the public markets on November 18, listing at a premium exceeding 33 percent at Rs 145 per share on the NSE.
On its first day, the stock climbed to a closing price of Rs 156.49, finishing nearly 44 percent higher than its IPO price.
Established as a YouTube channel in 2016, PhysicsWallah has transformed into one of India's largest edtech enterprises, managing both online and offline coaching centers.
The company achieved a 49 percent revenue increase in FY25 and reduced its losses to Rs 243 crore from a substantially higher figure in the prior fiscal year.
Even with the recent fluctuations, PhysicsWallah's valuation still exceeds that of unlisted rivals like upGrad, which was last valued at $2.25 billion, and Unacademy, valued at $3.44 billion.
According to its DRHP, the company generated Rs 3,480 crore through its initial public offering, comprising a Rs 3,100 crore fresh issue and Rs 380 crore via an Offer for Sale (OFS) from its founders.
The IPO was priced between Rs 103 and Rs 109 per share, resulting in an overall subscription of 1.81 times.
Point of View
The recent performance of PhysicsWallah shares underlines the increasing volatility in the stock market, especially for newly listed companies. While the edtech sector shows potential, it’s imperative for investors to remain vigilant and informed, as rapid fluctuations can impact their portfolios significantly. The overall market environment requires a cautious approach to investment, particularly in the wake of such notable declines.
NationPress
21/11/2025
Frequently Asked Questions
What caused the decline in PhysicsWallah shares?
The decline is attributed to significant selloffs and the inherent volatility of newly listed stocks.
How has PhysicsWallah performed since its IPO?
Since its IPO, PhysicsWallah saw an initial increase but has recently experienced three consecutive days of losses.
What is the current market cap of PhysicsWallah?
The current market capitalization of PhysicsWallah stands at Rs 40,490 crore.
What were the subscription rates for the IPO?
The IPO was subscribed 1.81 times, with shares priced between Rs 103 and Rs 109.
How does PhysicsWallah's valuation compare to its competitors?
Despite recent volatility, PhysicsWallah's valuation exceeds that of unlisted competitors like upGrad and Unacademy.
