If you're waiting for an IPO, you might have a good opportunity to make money in the coming days. Edtech unicorn PhysicsWallah is preparing to launch its IPO soon.
IPO: Noida-based edtech company PhysicsWallah has taken a significant step towards entering the Indian stock market. The company has filed draft papers for its Initial Public Offering (IPO) with the Securities and Exchange Board of India (SEBI) under the confidential pre-filing route. With this move, PhysicsWallah joins a select group of companies that have opted for the confidential filing route instead of the traditional route.
What is the Confidential Pre-Filing Route?
The confidential pre-filing route prevents companies from publicly sharing crucial information related to the IPO. It allows companies to release detailed information only after obtaining approval from the regulator. This provides companies with the flexibility to decide on the IPO launch considering market conditions.
What did PhysicsWallah say?
PhysicsWallah, in an official statement, said it has filed pre-DRHP (Draft Red Herring Prospectus) with SEBI and the relevant stock exchanges for its proposed IPO on the main board of stock exchanges for listing its equity shares. However, the company also clarified that this filing does not guarantee the IPO will proceed.
PhysicsWallah's Rapidly Expanding Reach
PhysicsWallah was founded in 2020 and operates in online, offline, and hybrid modes. It has reached its services to 98% of India's pin codes. Having carved a niche for itself in the edtech sector, the company recently raised US$210 million led by Hornbill Capital, valuing the company at US$2.8 billion.
Which Companies Used This Route Before PhysicsWallah?
Several large companies have planned IPOs through the confidential filing route before PhysicsWallah. These include online food delivery platform Swiggy and supermarket chain Vishal Mega Mart, which successfully launched their IPOs. OYO and Tata Play also used this route but ultimately did not proceed with their IPOs.
What Do Experts Say About the IPO?
Financial experts believe that the confidential filing route helps companies make more strategic decisions during the IPO process. This allows them to understand market conditions and attract investors at the opportune time. There is significant investor interest in PhysicsWallah's IPO. Due to its b foothold and extensive reach in the edtech sector, this IPO could prove to be an attractive investment opportunity. However, the final decision will depend on the company's future strategy and prevailing market conditions.
PhysicsWallah's IPO could be a significant milestone for the Indian startup ecosystem. It will be interesting to see when the company proceeds with its public offering and what prospects it offers investors.
