New Delhi: After a spectacular debut, PhysicsWallah’s shares have witnessed a sharp correction in the stock market. On Thursday, the company’s stock fell nearly 11% to ₹127.80 on BSE, marking its lowest level since listing. The decline has slashed the company’s market capitalization to around ₹36,000 crore, resulting in an estimated loss of ₹8,600 crore for investors in just three days.
Initial Listing and Surge
PhysicsWallah had a strong listing on 18th November, debuting at ₹145 on NSE and ₹143.10 on BSE, representing a 33% premium over its IPO price of ₹109. On the listing day, shares surged to a high of ₹162.05 before closing at ₹156.49, 44% above the IPO price. However, the momentum was short-lived.
- Second day: Shares dropped nearly 11% to ₹138.54, later closing at ₹143.28.
- Third day (Thursday): Further decline of over 9% brought the price to ₹127.80.
Reasons Behind the Fall
Despite the recent drop, the stock remains 20% above its IPO price. The sharp correction is attributed to:
- Profit booking after initial gains,
- Concerns over valuation,
- Cautious sentiment in the current IPO market.
At its peak during listing, PhysicsWallah’s market capitalization reached ₹46,300 crore. The recent correction underscores the volatile nature of newly listed stocks and the need for investors to navigate IPO investments carefully.
Investor Takeaway
While the stock has lost substantial value in three days, experts suggest monitoring market sentiment and evaluating long-term fundamentals before making investment decisions. PhysicsWallah’s innovative approach in ed-tech continues to hold promise, but short-term fluctuations remain high in newly listed companies.
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