PhysicsWallah confidentially files draft IPO papers with SEBI
What's the story
Edtech giant PhysicsWallah has filed its draft initial public offering (IPO) documents with the Securities and Exchange Board of India (SEBI). The company opted for a confidential pre-filing route, enabling it to keep some details under wraps according to the Draft Red Herring Prospectus (DRHP). PhysicsWallah made the strategic move public earlier this week.
IPO details
PhysicsWallah IPO: What we know
Founded in 2020, PhysicsWallah has become a household name for its wide-ranging learning resources. The company operates online, offline, and hybrid, catering to almost all Indian pin codes. In September 2024, it raised $210 million at a $2.8 billion valuation—two-and-a-half times its previous valuation. The planned IPO will comprise a fresh issue of shares and an OFS, though the exact split hasn't been revealed yet.
Filing trend
Joining exclusive club which took a similar route
PhysicsWallah's move to file for an IPO confidentially puts it in the company of a few others. Last year, Swiggy and Vishal Mega Mart launched their initial share sales successfully after confidential filings. OYO, which also took the route in 2023, didn't go ahead with the initial share sale. Tata Play was the first Indian company to opt for the option in December 2022 and obtained the regulator's observation letter in April 2023 but didn't proceed with its public issue.
Filing benefits
Advantages of pre-filing route for IPOs
The pre-filing route gives companies more leeway than the conventional ones. They are not bound to go for an IPO and can launch one within 18 months from SEBI's final comments. This route also permits a 50% change in the primary issue size till the Updated Draft Red Herring Prospectus (UDRHP) stage.