On the second day of trade, the stock tumbled nearly 11% to an intraday low of Rs 138.54 before ending 8% lower at Rs 143.28. The sell-off deepened on Thursday, with the shares slipping more than 9%.
Despite the pullback, the stock remains more than 20% above the IPO price.
At its peak on debut day, PhysicsWallah commanded a market value of nearly Rs 46,300 crore. That has now shrunk below Rs 37,700 crore, marking a swift erosion of nearly Rs 8,609 crore in three sessions as profit-taking, valuation worries and broader caution in new-age listings weighed on sentiment.
Should you buy, sell or hold PhysicsWallah shares?
Shivani Nyati, Head of Wealth at Swastika Investmart, attributed the strong debut to investor faith in PhysicsWallah’s “strong brand recall, affordable test-prep offerings, and its fast-growing hybrid model through both online platforms and PW Pathshala centers.”
Nyati added that the company benefits from a “loyal student base, scalable digital content engine, expanding offline footprint, and diversified presence across JEE, NEET, UPSC, and state-level exams.”
But she warned that competition from bigger edtech and coaching players, regulatory uncertainties, and profitability challenges are “key risks.”
As for strategy, Nyati noted that the IPO drew healthy retail participation on the back of hybrid learning demand and said, “Allottees may book partial profits and hold the remaining shares for medium-term growth with SL at Rs 130.”
PhysicsWallah IPO snapshot
PhysicsWallah’s Rs 3,481 crore IPO was among the largest from India’s edtech sector. The issue comprised a Rs 3,100.71 crore fresh issue and a Rs 380 crore offer for sale. The public offer was subscribed 1.92 times, led by robust demand from qualified institutional buyers at 2.86 times.
# Rs 8,600 Crore Wipeout! PhysicsWallah Shares Crash 19% from Day 1 Peak
Edtech sensation PhysicsWallah (PW) rode a wave of hype into its market debut, but the party's over faster than a cramming session before exams. Just two days after listing with a whopping 44% pop, shares of the Alakh Pandey-led unicorn have nosedived, erasing nearly Rs 8,600 crore in market value and leaving investors nursing losses. On November 20, 2025—barely 48 hours post-debut—the stock tanked another 15%, spotlighting the brutal volatility plaguing India's IPO frenzy. Is this a classic profit-booking blip, or a red flag for overvalued edtech dreams? As PW's blockbuster YouTube origins meet Wall Street reality, one thing's clear: In the stock game, even physics masters can't defy gravity forever.
This tumble isn't isolated—it's a symptom of jittery sentiment in a sector still scarred by pandemic-fueled booms and busts. With retail investors piling in at premiums, the unwind has been swift and savage.
## The Breakneck Timeline: From 44% Surge to 19% Slump
PW's IPO journey was a textbook triumph turned tragedy. The Rs 3,481 crore issue—comprising a Rs 3,100 crore fresh raise and Rs 380 crore offer for sale—opened for bids on November 11 and closed on November 13, subscribed 1.92 times overall. Qualified institutional buyers (QIBs) lapped it up 2.86 times, while retail was a modest 1.14 times. Anchors like BlackRock and Capital Group poured in Rs 1,563 crore on November 10, locking up shares until mid-December or February.
But the real fireworks hit on listing day:
| Date | Key Event | NSE Close (Rs) | % Change from Prev | Market Cap (Rs Cr) | Notes |
|------------|----------------------------|----------------|---------------------|---------------------|-------|
| Nov 18 | Listing Day | 156.49 | +44% (from IPO Rs 109) | ~45,974 | Opened at Rs 145 (+33%), BSE at Rs 143.10; peak frenzy. |
| Nov 19 | Day 2 Correction | ~142 (est.) | -9% | ~41,000 (est.) | Early unwind; profit-taking kicks in. |
| Nov 20 | Day 3 Bloodbath | 130.65 (BSE low) | -15% | 34,888 | Intraday skid to Rs 130.65; 19% off Day 1 peak, 16% below listing open. |
*Data compiled from exchange filings; mcap based on ~1.02 billion shares outstanding.
From a Day 1 high of Rs 156.49, the stock cratered 19% to hover around Rs 127 by close, dragging mcap below Rs 37,700 crore and vaporizing Rs 8,609 crore in investor wealth over three sessions. That's a steeper drop than peers like Zepto or Swiggy saw in their early wobbles, amplified by a 4% arbitrage gap between NSE (up 2.6% to Rs 147) and BSE (down 1.8% to Rs 140.95) on Thursday. Ouch.
## Unpacking the Plunge: Profit Booking or Deeper Woes?
What flipped the script so fast? Blame it on the usual suspects in IPO purgatory:
- **Rampant Profit-Taking**: With a 44% Day 1 gain, early allottees—especially retail punters who snagged shares at Rs 109—cashed out en masse, flooding the market with supply.
- **Valuation Hangover**: At peak, PW traded at 15-18x FY25 sales (Rs 3,039 crore revenue), eyebrow-raising for an edtech still nursing cumulative losses and a Q1 FY26 net loss of Rs 127 crore. Skeptics question if the "YouTube-to-unicorn" narrative justifies the premium amid slowing user growth post-pandemic.
- **Market Mood Swings**: Broader IPO fatigue, with 20+ listings in November alone, has bred caution. Edtech's checkered history—Byju's implosion still fresh—adds fuel to the fire.
Social media's abuzz with memes and meltdowns: X users quip about "PhysicsWallah's first lesson in market gravity," while traders predict further dips to Rs 120 before rebounding. One viral post? "PW shares: Up like a rocket, down like a bad exam score."
## PhysicsWallah: Fundamentals Amid the Freefall
Don't write off PW yet—it's no flash-in-the-pan. Founded in 2016 by self-taught physics whiz Alakh Pandey (now a billionaire on paper), the platform exploded from free YouTube videos to 13.7 million subscribers and 4.46 million paid users. It boasts 303 offline centers across 152 cities in India and the Middle East, blending online (52% revenue) with hybrid learning for JEE/NEET prep.
Financials show promise: FY25 revenue soared 51% to Rs 3,039 crore, flipping a Rs 1,131 crore FY24 loss into Rs 243 crore profit (6.7% EBITDA margin). IPO cash will fuel southern India push, Indic language courses, tech upgrades, and acquisitions—aiming for 30%+ annual growth and profitability within a year. No inorganic buys planned, keeping it organic like Pandey's teaching style.
## Bouncing Back? The Road Ahead for PW Investors
Despite the carnage, shares linger 11-20% above the Rs 109 IPO price, hinting the growth story endures. Analysts eye stabilization as arbitrage narrows and Q2 earnings (due December) spotlight user adds. "Volatility's par for new listings, but PW's moat in affordable edtech is solid," notes one market watcher. Risks? Intensifying competition from Unacademy and regulatory scrutiny on coaching fees.
For long-haulers, this dip screams "buy the fear"—edtech's total addressable market hits Rs 1 lakh crore by 2030. Short-term traders? Brace for more swings.
PhysicsWallah's market baptism was bumpy, but Pandey's mantra rings true: "Hard work beats talent when talent doesn't work hard." Will shares ace the recovery test? Or flop like a forgotten formula? Weigh in below—bullish rebound or value trap?
*Sources: The Economic Times, CNBC TV18, and X posts, as of November 20, 2025.*
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