Stock Crash: Listed at a premium two days ago, fell by 11% today, losing ₹12,000 crore market cap in three days

News Topical, Digital Desk : Stock Crash: Edtech company PhysicsWallah Limited was listed on the NSE on November 18. Following yesterday's Wednesday, the company's shares have seen a significant decline today, Thursday, November 20.

The company's shares fell by 15% today, intensifying the sell-off that began on Wednesday. This decline continues despite the company's strong market debut.

Loss of ₹10,000 crore market cap in 3 days
The company's market cap has now fallen to ₹34,888.25 crore, which is almost ₹10,000 crore less than the valuation of ₹45,974.84 crore at the time of listing on November 18.

In just 3 trading sessions, the stock has fallen 16% from its listing price. However, despite the decline, the shares are still trading at an 11% premium over the IPO price of ₹109.

Physicswala's target: "We want to strengthen our presence in South India. Our target is to win in 11 Indian languages. We will expand our presence in several exam categories. Both online and offline models are growing rapidly. 52% of the company's revenue comes from online business, with the remainder coming from offline centers." Maheshwari said that since both segments are growing rapidly, this ratio will remain roughly stable. He further added that revenue grew by more than 40% in FY24-25. Growth of 30%+ is expected to continue in the coming years. The company is not currently planning any inorganic growth or acquisitions. Physicswala listed on the NSE at ₹145 and the BSE at ₹143.10 on November 18 , delivering a 36% listing gain. The IPO, valued at ₹3,480 crore, opened between November 11-13 and was oversubscribed by 2 times. 

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