PhysicsWallah Files Draft IPO Papers With Sebi Via Confidential Route

Edtech unicorn PhysicsWallah has filed draft IPO papers with capital markets regulator Sebi through a confidential pre-filing route. The confidential pre-filing route allows the company to withhold public disclosure of details under the draft red herring prospectus (DRHP). In a public announcement made on Wednesday, Noida-based PhysicsWallah said it has "filed pre-DRHP with Sebi and the stock exchanges under...ICDR Regulations in relation to the proposed initial public offering of its equity shares on the mainboard of the stock exchanges".

However, it clarified that pre-filing DRHP does not guarantee the company will go ahead with the initial public offering (IPO). Founded in 2020, PhysicsWallah is known for providing accessible and comprehensive learning experiences to students. It has a presence spanning online, offline, and hybrid modes, reaching 98 per cent of Indian pin codes. In September, PhysicsWallah announced raising USD 210 million in a funding round led by Hornbill Capital at a 2.5 times higher valuation of USD 2.8 billion.

PhysicsWallah joined the league of a handful of companies that took confidential filing routes for its IPO. Last year, food delivery giant Swiggy and supermart major Vishal Mega Mart successfully floated their respective initial share sales after making confidential filings. Before this, online hotel aggregator OYO took the confidential filing route in 2023 but did not proceed with the initial share sale.

Tata Play, formerly known as Tata Sky, was the first company in India to use the confidential pre-filing of draft papers option for an IPO in December 2022 and obtained the regulator's observation letter in April 2023. However, the company did not proceed with the public issue. Under the pre-filing route, there is no pressure on the company to go for an IPO, experts said.

Moreover, unlike the traditional route where companies have to launch the IPO within 12 months from the Sebi approval, or final observation; in the pre-filing route, an IPO can be floated within 18 months from the date of Sebi's final comments. This route also provides flexibility to change the primary issue size by 50 per cent till the Updated Draft Red Herring Prospectus (UDRHP) stage.

(PTI)