PhysicsWallah Raises ₹1,563 Crore from Anchor Investors with 13x Oversubscription Ahead of IPO

Edtech unicorn PhysicsWallah has secured a strong vote of confidence from institutional investors, raising ₹1,562.85 crore from 57 anchor investors at the upper price band of ₹109 per share, ahead of its highly anticipated initial public offering. The anchor book attracted bids worth nearly ₹20,000 crore, representing an impressive oversubscription of approximately 13 times, signaling robust institutional interest in India's education technology sector.

Anchor Allocation Details

According to the company's filing with stock exchanges, 14,33,80,733 equity shares were allotted to anchor investors at ₹109 per share. The allocation demonstrated strong participation from both domestic and international institutional investors, reflecting widespread confidence in PhysicsWallah's business model and growth potential.

Strong Domestic Mutual Fund Participation

Domestic mutual funds showed particularly strong interest in the anchor round. Out of the total anchor portion, 7.95 crore shares (55.48%) were allocated to 14 domestic mutual funds across 35 schemes, collectively raising ₹867 crore.

Prominent domestic asset management companies that participated in the anchor investment include:

• ICICI Prudential Mutual Fund
• Kotak Mahindra Mutual Fund
• Nippon Life India Mutual Fund
• Aditya Birla Sun Life Mutual Fund
• DSP Mutual Fund
• Motilal Oswal Mutual Fund
• 360 ONE
• Tata Mutual Fund
• Bharti AXA Life Insurance
• Edelweiss Mutual Fund
• Canara Robeco Mutual Fund

This broad-based participation from India's leading mutual fund houses underscores the attractiveness of PhysicsWallah's investment proposition to domestic institutional capital.

Global Institutional Investor Interest

The anchor round also witnessed strong participation from renowned global investment firms, including:

• Capital Research and Management Company
• Goldman Sachs Asset Management (GSAM)
• Fidelity Investments
• Franklin Templeton
• PineBridge Investments
• Eastspring Investments
• White Oak Capital

The presence of these global institutional investors validates PhysicsWallah's potential in the international investment community and brings experienced long-term capital to the company's shareholder base.

Secondary Transaction at Premium Valuation

Adding to the positive momentum, global investment firm Think Investments infused ₹136 crore into PhysicsWallah last week through a secondary share transaction. Notably, this deal was executed at ₹127 per share, representing a substantial 17% premium over the IPO's upper price band of ₹109.

This premium transaction suggests strong investor appetite for PhysicsWallah shares even at valuations above the IPO price range, potentially indicating positive sentiment for the stock's post-listing performance.

IPO Structure and Timeline

PhysicsWallah is set to launch its ₹3,480 crore IPO on November 11, 2025. The public issue comprises two components:

• Fresh Issue: ₹3,100 crore to be raised by the company
• Offer for Sale (OFS): ₹380 crore by co-founders Alakh Pandey and Prateek Boob

The IPO is priced in the range of ₹103–₹109 per share, valuing the company at over ₹31,500 crore at the upper price band. This valuation positions PhysicsWallah among India's most valuable edtech companies and reflects the market's recognition of the company's growth trajectory and market leadership.

Financial Performance Overview

According to the Red Herring Prospectus (RHP), PhysicsWallah's financial performance for FY25 showed substantial scale with growing revenues:

FY25 Financial Performance

• Operating Revenue: ₹2,887 crore
• Net Loss: ₹243 crore

Q1 FY26 Performance

For the first quarter of the ongoing fiscal year (Q1 FY26), the company reported:

• Revenue: ₹847 crore
• Loss: ₹127 crore

While the company continues to report losses, the substantial revenue generation demonstrates PhysicsWallah's ability to scale its business and capture market share in India's competitive edtech landscape. The ongoing losses are typical for high-growth technology companies investing heavily in expansion, content development, and customer acquisition.

About PhysicsWallah

PhysicsWallah was founded by Alakh Pandey and Prateek Boob with a mission to make quality education accessible and affordable to students across India. The platform initially gained popularity through free YouTube educational content before transitioning to a comprehensive edtech platform offering both free and paid courses.

The company has built a strong brand in the competitive exam preparation segment, particularly focusing on:

• JEE (Joint Entrance Examination) preparation for engineering aspirants
• NEET (National Eligibility cum Entrance Test) preparation for medical students
• Board examination preparation for secondary education
• Foundation courses for younger students

Competitive Landscape and Market Position

PhysicsWallah operates in India's rapidly evolving edtech sector, which has experienced significant growth driven by increasing internet penetration, smartphone adoption, and changing learning preferences. The company differentiates itself through:

• Affordable pricing: Significantly lower course fees compared to traditional coaching institutes
• Quality content: Comprehensive study materials and video lectures
• Brand trust: Strong reputation built through founder Alakh Pandey's YouTube presence
• Vernacular approach: Content delivery in regional languages alongside English
• Hybrid model: Combining online and offline learning centers

Use of IPO Proceeds

The ₹3,100 crore fresh issue proceeds will be utilized by PhysicsWallah for various strategic initiatives, typically including:

• Technology infrastructure and platform development
• Content creation and curriculum expansion
• Marketing and brand building activities
• Expansion of offline learning centers
• Potential acquisitions and strategic investments
• Working capital requirements

Investment Considerations

Growth Drivers

• Market opportunity: Large and growing addressable market in India's education sector
• Digital adoption: Accelerating shift toward online learning platforms
• Brand strength: Strong recognition and trust among target student demographics
• Affordable pricing: Competitive advantage in price-sensitive Indian market
• Omnichannel approach: Combination of online and offline presence

Challenges and Risks

• Continued losses: Company not yet profitable, requiring sustained investment
• Intense competition: Crowded edtech market with multiple well-funded players
• Regulatory uncertainty: Evolving regulations affecting education technology sector
• Customer retention: Challenge of maintaining student engagement and course completion rates
• Scale vs. profitability: Balancing growth investments with path to profitability

Market Sentiment and Expectations

The overwhelming response to the anchor book, with 13x oversubscription, indicates strong institutional conviction in PhysicsWallah's business model and growth prospects. The participation of leading domestic mutual funds suggests confidence that retail investors may follow their lead during the public subscription period.

The premium achieved in the secondary transaction by Think Investments further reinforces positive market sentiment, potentially setting the stage for strong listing performance.

What This Means for Retail Investors

Retail investors considering PhysicsWallah's IPO should evaluate several factors:

• Strong anchor response: Institutional confidence may indicate positive fundamentals
• Premium secondary transaction: Suggests investor willingness to pay above IPO price
• Growth story: Significant revenue growth demonstrates market traction
• Loss-making status: Continued losses require assessment of path to profitability
• Valuation: Over ₹31,500 crore valuation should be evaluated against peers and growth prospects
• Sector dynamics: Understanding edtech sector trends and competitive intensity

Conclusion

PhysicsWallah's successful anchor book allocation, raising ₹1,563 crore with 13x oversubscription, positions the company favorably ahead of its November 11 IPO opening. The strong participation from both domestic and international institutional investors, combined with a recent secondary transaction at premium valuation, suggests robust market interest in India's edtech sector and PhysicsWallah's specific growth story.

As the IPO opens for public subscription, investors will be watching closely to see if retail demand matches the enthusiasm demonstrated by institutional investors in the anchor round.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Tata Motors Commercial Vehicles Arm to List on November 12: Complete Demerger Timeline and Share Performance

In a significant corporate restructuring milestone, the BSE announced on Monday, November 10, that Tata Motors Commercial Vehicles Limited (TMLCV) will be listed and commence trading on stock exchanges starting Wednesday, November 12, 2025. This listing marks the completion of Tata Motors' strategic demerger, creating two distinct listed entities focused on commercial and passenger vehicle businesses.

Official Listing Announcement and Trading Parameters

According to the BSE notice issued on November 10, the equity shares of Tata Motors Limited (formerly known as TML Commercial Vehicles Limited) will be listed and admitted to trading on the exchange in the T Group of Securities. The commercial vehicles arm will list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The BSE notice specified that "the scrip will be in the Trade-for-Trade segment for 10 trading days" in accordance with SEBI circulars. This means that during the initial ten trading sessions, delivery-based trading will be mandatory, with no intraday squared-off positions permitted.

Additionally, the security will participate in a special pre-open session designated for IPOs and other categories of scrips, as per regulatory guidelines established by SEBI.

Understanding the Demerger Structure

Tata Motors has strategically separated its business operations into two distinct entities, each designed to operate with enhanced focus and operational agility:

Tata Motors Commercial Vehicles Limited (TMLCV)

This entity houses the company's commercial vehicles business and related investments. The commercial vehicles segment includes trucks, buses, and other heavy-duty vehicles that have historically been Tata Motors' core business strength. Following the demerger, TMLCV will eventually adopt the name "Tata Motors Limited" to carry forward the legacy brand associated with commercial vehicles.

Tata Motors Passenger Vehicles Limited (TMPV)

The passenger vehicles entity encompasses multiple business units including:

• Passenger Vehicles (PV): Traditional internal combustion engine passenger cars
• Electric Vehicles (EV): The growing electric mobility portfolio
• Jaguar Land Rover (JLR): The premium British automotive brands
• Related investments: Associated ventures and technology partnerships

Passenger Vehicles Arm Already Trading

Tata Motors' passenger vehicles division began trading as a separate entity from October 14, 2025, marking an important milestone in the company's restructuring journey. A special trading session was conducted in October to facilitate price discovery for the newly separated entity.

The company had fixed October 14, 2025, as the record date to determine shareholders eligible to receive shares in the demerged commercial vehicle business under the 1:1 demerger ratio. This means existing Tata Motors shareholders received one share each in both the passenger vehicles and commercial vehicles entities.

Current TMPV Share Performance

In early trading on Tuesday, November 11, TMPV shares were trading nearly 2% lower at ₹402.85 per share on the NSE. This price movement reflects the market's assessment of the passenger vehicles business as an independent entity, separate from the commercial vehicles operations.

Name Changes and Corporate Identity

The demerger involved significant changes to corporate identities:

Tata Motors Passenger Vehicles Limited

In October 2025, the original Tata Motors Limited was renamed Tata Motors Passenger Vehicles Limited. The Ministry of Corporate Affairs issued a fresh Certificate of Incorporation dated October 13, 2025, officially changing the company name.

Interestingly, the company filing noted that Tata Motors was originally incorporated as Tata Locomotive And Engineering Company Limited, highlighting its long industrial heritage dating back to its founding.

Future Name Change for Commercial Vehicles Entity

The filing stated: "Subsequently, pursuant to the scheme, TMLCV shall take the necessary steps to change its name to Tata Motors Limited in due course." This indicates that the commercial vehicles business will eventually carry the iconic Tata Motors name, recognizing its historical significance as the company's original core business.

Strategic Rationale Behind the Demerger

In early 2024, Tata Motors articulated the strategic vision behind separating its commercial and passenger vehicle businesses into distinct listed entities. The company emphasized that this restructuring would enable both businesses to better capitalize on their respective growth opportunities.

Chairman's Vision

Tata Motors Chairman N. Chandrasekaran highlighted the company's successful turnaround in recent years. "Tata Motors scripted a strong turnaround in the last few years. The three automotive business units are now operating independently and delivering consistent performance," he stated.

Chandrasekaran emphasized the benefits of the demerger: "This demerger will help them better capitalise on the opportunities provided by the market by enhancing their focus and agility."

Benefits of Creating Two Focused Entities

The demerger strategy offers several advantages for both businesses and shareholders:

Enhanced Operational Focus

Each entity can concentrate exclusively on its specific market segment, customer base, and competitive dynamics without distraction from the other business's requirements.

Tailored Capital Allocation

The commercial and passenger vehicle businesses have different capital intensity profiles and investment requirements. Separate entities enable more precise capital allocation aligned with each business's growth strategy.

Independent Strategic Flexibility

Management teams can pursue sector-specific strategies, partnerships, and acquisitions without navigating the complexities of a combined entity with potentially conflicting priorities.

Distinct Investor Profiles

Different investors have varying preferences regarding commercial versus passenger vehicle exposure. Separate listings allow investors to allocate capital based on their specific investment thesis and risk appetite.

Improved Valuation Transparency

Markets can more accurately value each business based on its specific fundamentals, growth prospects, and competitive position, potentially unlocking value previously obscured in the combined entity.

What November 12 Listing Means for Shareholders

Existing Tata Motors shareholders who held shares as of the October 14 record date automatically received shares in both entities under the 1:1 demerger ratio. Here's what they can expect:

• Two separate holdings: Shareholders now own shares in both TMPV and TMLCV
• Independent trading: Each entity trades separately based on its own fundamentals
• Different price movements: The stocks may move independently based on sector-specific factors
• Separate dividends: Each company will determine its own dividend policy
• Distinct corporate actions: Future decisions on fundraising, mergers, or acquisitions will be independent

Market Implications and Investor Considerations

The completion of Tata Motors' demerger creates interesting dynamics for the Indian automotive sector:

Commercial Vehicles Outlook

The commercial vehicles business benefits from infrastructure development, economic growth, and goods transportation demand. Key factors to watch include freight rates, infrastructure spending, replacement demand cycles, and regulatory changes affecting commercial transportation.

Passenger Vehicles and JLR Outlook

The passenger vehicles entity encompasses diverse growth drivers including India's rising car ownership rates, electric vehicle adoption, and JLR's performance in luxury segments globally. Investors will assess each component's contribution to overall value.

Valuation Considerations

Market participants will now evaluate each business using appropriate sector-specific metrics. Commercial vehicles may be valued based on cyclical industry dynamics and market share, while the passenger vehicles entity receives assessment based on brand strength, EV transition progress, and JLR's luxury market positioning.

Trading Guidelines for November 12

Investors planning to trade TMLCV shares from November 12 should note:

• Trade-for-Trade segment: Mandatory delivery-based trading for the first 10 sessions
• No intraday trading: All purchases must be taken to delivery; no same-day squared-off positions
• Special pre-open session: Price discovery through special pre-open mechanism
• Settlement obligations: Full payment and delivery required for all trades
• Price discovery period: Initial sessions will establish market-determined valuations

Looking Ahead

The November 12 listing of Tata Motors Commercial Vehicles Limited marks the culmination of a carefully planned corporate restructuring that began with announcements in early 2024. Both entities are now positioned to pursue their distinct strategic paths while benefiting from the Tata brand legacy and organizational capabilities.

As the market evaluates these businesses independently, their respective stock prices will reflect sector-specific opportunities and challenges. Investors have gained the flexibility to tailor their exposure to Indian automotive sectors based on individual preferences and market outlooks.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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