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Investors Bet Big on PhysicsWallah's Decade of Growth
18 Nov
Summary
- WestBridge sees PhysicsWallah growing 30% annually for a decade.
- Investors like WestBridge Capital plan to hold stakes long-term.
- PhysicsWallah's stock debuted at Rs 145, closing at Rs 156.4 on NSE.
Leading investment firms are demonstrating a commitment to long-term growth, with WestBridge Capital emphasizing that PhysicsWallah's recent IPO is not a liquidity event but a strategic transition. Sandeep Singhal, co-founder of WestBridge, expressed confidence in the edtech's potential, projecting a decade of 30% annual growth and indicating his firm's intent to remain invested for the long haul.
PhysicsWallah's stock launched on the NSE at Rs 145, a premium to its issue price, and closed at Rs 156.4, establishing a market capitalization of Rs 44,751 crore. Despite initial muted interest in its Rs 3,480 crore IPO, demand surged on the final day, particularly from institutional investors, ensuring full subscription.
WestBridge, holding a 5.77% stake valued at approximately Rs 2,600 crore post-listing, highlights its perennial fund structure, allowing for investment horizons of five to 25 years. This approach enables them to forgo the urgency for quick exits, focusing instead on companies poised for substantial long-term appreciation, a strategy also applied to other major investments like Freshworks and HDFC Bank.
