Physicswallah’s mathematics puzzle: Stock ends 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 puzzling trading anomaly, the newly-listed edtech company ended the session with sharply divergent closing prices on the two main exchanges, BSE and NSE, in a unique case that capped a volatile few days for one of the market’s 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 Rs 6.05 gap, or roughly 4%, between the two closing prices is highly unusual in a tightly arbitraged market such as India’s.

Such price differences are typically short-lived and tend to narrow in early trades in the following session, as arbitrage activity usually brings prices back into alignment.

The quirky close came at the end of another turbulent session for the stock. Earlier in the day, shares of the edtech company skidded as much as 9% to Rs 130.65 on the BSE, dragging its market capitalisation below Rs 37,700 crore and erasing nearly Rs 8,609 crore in just three sessions. The abrupt reversal rattled investors who only days ago had cheered a blockbuster listing.

From blockbuster debut to sudden shake-out

PhysicsWallah made its debut on November 18, listing at a 33% premium at Rs 145 on the NSE and Rs 143.10 on the BSE. The rally intensified through the session, with the stock closing its first day at Rs 156.49, up nearly 44% over its IPO price of Rs 109.But the euphoria faded almost as quickly as it arrived. In just three sessions, a chunk of that early enthusiasm has been unwound, underscoring the volatility surrounding recent listings and the fragile sentiment in pockets of the broader IPO market.

PhysicsWallah IPO snapshot

PhysicsWallah’s Rs 3,481 crore public issue was among the largest from India’s edtech sector this year. It comprised a Rs 3,100.71 crore fresh issue and a Rs 380 crore offer for sale.

The IPO was subscribed 1.92 times, anchored by strong demand from qualified institutional buyers, who subscribed their portion 2.86 times. Retail investors subscribed 1.14 times, while non-institutional interest was lower at 0.51 times. Employee participation was notably strong at 3.71 times, aided by a Rs 10 discount.

Ahead of the issue, the company raised Rs 1,563 crore from anchor investors on November 10. The 14.33 crore-share anchor book is subject to lock-ins running until 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 into a major edtech platform with 13.7 million subscribers, 4.46 million paid users and 303 physical centres as of June 2025.

The company posted a 51% jump in FY25 revenue to Rs 3,039 crore and swung to a net profit of Rs 243 crore, reversing a Rs 1,131 crore loss in FY24. Its EBITDA margin stood at 6.7% in FY25. However, cumulative losses remain, and the company reported a Rs 127 crore loss in Q1 FY26.

Proceeds from the IPO are earmarked for offline expansion, lease commitments, technology upgrades, cloud capacity, infrastructure, marketing and acquisitions.

Despite the sharp slide of recent sessions and Thursday’s split close, the stock still trades comfortably above its IPO price of Rs 109, suggesting that while near-term volatility has intensified, the broader growth narrative is not yet off the table.

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

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