PhysicsWallah shares slide after early gains, erasing nearly ₹10,000 crore in market value

Mumbai | November 24

PhysicsWallah’s market debut has taken a volatile turn, with the edtech company’s shares retreating sharply from their early highs and wiping close to ₹10,000 crore from its market capitalisation within a week of listing. The stock, which opened at a 31% premium to its issue price, has since given up much of its immediate post-listing momentum.

After touching a peak of ₹162.05, the shares have now fallen more than 21%, declining for the fourth consecutive session to trade near ₹127 on November 24. Despite the correction, PhysicsWallah remains above its IPO price of ₹109, leaving early investors with mid-teens returns — although far below the surge seen on debut.

Post-listing volatility intensifies as investors reassess valuation

The sharp reversal reflects a broader reassessment of valuations following an IPO that drew modest demand, with subscriptions of just around 1.8 times. The limited oversubscription left the stock more vulnerable once initial trading enthusiasm eased and profit-taking set in.

In the span of five trading days, the company’s market value has contracted by nearly ₹10,000 crore, underscoring how sensitive newly listed, growth-oriented businesses can be to shifts in sentiment and liquidity. Much of the selling appears driven by short-term investors locking in early gains, while others wait for clearer visibility on the company’s earnings trajectory before committing fresh capital.

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Such moves are not unusual for high-growth technology companies entering the public markets, particularly those still navigating the transition from private valuations to the more unforgiving metrics of public-market scrutiny.

Expansion continues, but earnings remain uneven

PhysicsWallah continues to invest heavily in expansion across offline centres, hybrid formats and digital learning products signalling a long-term growth strategy aimed at diversifying revenue and strengthening its competitive position. The pace of expansion has been rapid, but the company’s profitability remains uneven, reflective of a business still in its scaling phase.

This combination of fast growth, heavy investment and evolving margins tends to amplify volatility in the early months of public trading. With quarterly earnings yet to stabilise, investors remain divided over whether the stock’s post-listing correction represents a healthy consolidation or a signal of deeper valuation concerns.

For now, the stock’s trajectory is likely to be shaped by upcoming earnings disclosures, the performance of the company’s offline centres, and the broader market’s appetite for newly listed consumer-internet businesses.

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