PhysicsWallah IPO Under Scrutiny as Agency Flags Major Financial Deviations

PhysicsWallah, which launched its IPO with a fresh issue of ₹3,100 crore, has come under scrutiny after a monitoring agency, CARE Ratings, reported a deviation in fund utilization. According to the agency’s findings released on 4 November 2026, ₹71.74 crore was allocated to Guiding Light Education Technologies, a purpose not specified in the IPO offer document. Although this deviation, which is less than 10% of the total issue, raised concerns, the company promptly returned the funds to the monitoring account, asserting the matter has been rectified.

The IPO had a successful debut on 18 November 2025, listing at ₹145, which was 33% above its issue price of ₹109. However, as of 4 November 2026, the shares were trading at ₹127.41, reflecting market sentiment that may be cautious due to the recent flagging of fund utilization discrepancies. The monitoring body also highlighted an EBITDA loss of ₹57 crore for the first half of FY27, adding another layer of complexity to investor perceptions of the company’s financial health.

For Indian investors, this situation illustrates the importance of monitoring how companies utilize their IPO funds and the potential risks associated with such deviations. Although the company has addressed the issue by returning the funds, the ongoing scrutiny and reported losses could impact investor confidence in the long term. This incident serves as a reminder that while initial performance may be strong, ongoing compliance and transparency are crucial for sustaining investor trust.

Source: The Economic Times

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