Physicswallah’s math puzzle: Shares end 2% lower on BSE, 3% higher on NSE

Did PhysicsWallah shares end lower or higher on Thursday? It depends on which exchange you are looking at. In a rare and confusing trading anomaly, the newly listed edtech company ended the session with widely divergent closing prices on the two major stock exchanges, BSE and NSE, in a unique event that capped a volatile few days for one of the most hyped IPOs of the year.PhysicsWallah shares closed 2.6% higher at Rs 147 on the NSE, while the stock ended 1.8% lower at Rs 140.95 on the BSE, amid heightened activity in the final minutes of trade. The difference of Rs 6.05, or about 4%, between the two closing prices is very unusual in a tightly arbitraged market like India.

Such price gaps are typically short-lived and tend to narrow during the early trades of the next session as arbitrage activity tends to bring prices back into line.The quirky close came at the end of another turbulent session for the stock. Earlier in the day, the edtech company’s shares fell as much as 9% to Rs 130.65 on the BSE, dragging its market capitalization below Rs 37,700 crore and wiping out nearly Rs 8,609 crore in just three sessions. The abrupt reversal rattled investors who had cheered a blockbuster listing just days ago.

From blockbuster debut to sudden shake-out

PhysicsWallah made its debut on November 18 and recorded a 33% premium of Rs 145 on the NSE and Rs 143.10 on the BSE. The rally intensified during the session with the stock closing on the first day at Rs 156.49, up nearly 44% from its IPO price of Rs 109.

But the euphoria disappeared almost as quickly as it came. In just three sessions, some of that early enthusiasm has dissipated, underscoring the volatility surrounding recent listings and the fragile sentiment in the broader IPO market.

PhysicsWallah IPO Snapshot

PhysicsWallah’s Rs 3,481 crore public issue was among the largest in the Indian edtech sector this year. It included a fresh issue of Rs 3,100.71 crore and a sale offer of Rs 380 crore.

The IPO was subscribed 1.92 times, driven by strong demand from qualified institutional buyers, who subscribed their share 2.86 times. Retail investors subscribed 1.14 times, while non-institutional rates were lower at 0.51 times. Employee participation was remarkably strong at 3.71 times, helped by a discount of Rs 10.

Ahead of the issue, the company has raised Rs 1,563 crore from anchor investors on November 10. The anchor book of 14.33 crore shares is subject to lock-ins lasting till mid-December and mid-February, depending on the tranche.

PhysicsWallah financial snapshot

Founded by Alakh Pandey and Prateek Boob, PhysicsWallah has evolved from a single YouTube channel to a major edtech platform with 13.7 million subscribers, 4.46 million paid users and 303 physical centers as of June 2025.

The company posted a 51% jump in revenue in FY25 to Rs 3,039 crore and shifted to a net profit of Rs 243 crore, reversing a loss of Rs 1,131 crore in FY24. The EBITDA margin was 6.7% in FY25. However, cumulative losses persist and the company reported a loss of Rs 127 crore in the first quarter of FY26.

Proceeds from the IPO will be used for offline expansion, lease obligations, technology upgrades, cloud capacity, infrastructure, marketing and acquisitions.

Despite the sharp decline in recent sessions and Thursday’s split, the stock is still trading comfortably above its IPO price of Rs 109, suggesting that while short-term volatility has increased, the broader growth story is not off the table.

Also read | Wiping out Rs 8,600 crore! PhysicsWallah shares crash 19% from day 1 peak

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