Physicswallah IPO Lock-In Expiry: ₹2,949 Crore Worth of Shares Set for Trading – Are You In?

The shares of the edtech platform Physicswallah are set to garner significant attention on Monday as approximately 26 crore shares, valued at around Rs 2,949 crore and representing 9% of the company’s total equity, become available for trade following the expiration of the six-month lock-in period. This development comes at a critical juncture for the company, as it can potentially impact share price stability and trading dynamics. However, it is important to clarify that the end of the lock-in period does not guarantee an immediate sell-off of these shares; rather, it indicates that shareholders can now exercise their trading options.

Physicswallah had a robust market debut in November of the previous year, listing at Rs 145 apiece, which was a 33% premium over its IPO price. The initial public offering successfully attracted a strong response, being oversubscribed nearly two times, particularly by qualified institutional buyers (QIBs). However, the stock has experienced notable volatility since then. After peaking at Rs 161.99 shortly after listing, it subsequently fell approximately 52% to a low of Rs 77.72 by March of the current year. Currently, it remains down 22% from its listing price yet shows a 5% gain relative to its IPO price of Rs 109 apiece, closing at Rs 113.85 recently.

For Indian investors, the expiration of the lock-in period for Physicswallah could signify increased liquidity and trading activity, as the eligible shares can now move freely in the market. Given the company’s recent financial performance, which includes a 34% year-on-year rise in operating revenue and a net profit increase, investors may observe a renewed interest in the stock. However, caution is warranted, especially given the stock’s historical volatility and the potential for market sentiment to influence share price movements. Overall, investors should stay informed about both market conditions and the company’s ongoing performance metrics as trade unfolds.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)