PhysicsWallah shares tumble after strong debut, market cap drops by ₹8,400cr
PhysicsWallah's shares dropped over 8% on Thursday, just days after a strong stock market debut.
The stock is now down more than 9% from its listing price, but still trades more than 20% above its IPO issue price of ₹109.
IPO numbers and what happened
After peaking at a market cap of ₹46,300cr on debut day, PhysicsWallah's value fell to under ₹37,900cr—a drop of around ₹8,400cr in just three days.
The IPO was priced at ₹109 per share and saw decent demand with a 1.81x subscription rate.
How's the company doing?
PhysicsWallah posted impressive revenue growth—up 49% in FY25—and managed to shrink its net loss from over ₹1,100cr last year to just ₹243cr now.
Analysts suggest that improved profit margins could come from better cost control and making money off their huge free user base.
Still, analysts point out that tough competition from Unacademy and BYJU'S plus the risks of expanding offline could make things challenging going forward.