Edtech Startup Physicswala has filed draft IPO paper through the confidential filing route near the Securities and Exchange Board of India (SEBI). The company plans to issue new shares of $ 500 million (about Rs 4,600 crore), which will also include a proposal for sale (OFS). However, Physicswala has not commented on this.
Currently amidst unstable and unexpected market conditions, many startups are selecting the confidential filing route for public listing. This route helps companies to revaluate their IPO plans and move slowly.
Despite the investment challenges of Edtech companies like Bayju, Physicswala has raised important private funding last year. In September 2024, the company raised $ 2.22 million from a group of investors led by Hornbill Capital on an evaluation of $ 2.8 billion. Other investors of the company include LightSpeed Venture Partners, GSV Ventures and Westbridge Capital.
Before investing in IPO, investors should focus on the following points:
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Read red hering prospectus: This document provides important information about the company, such as financial history, business models, risk etc.
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Understand the purpose of raising funds: Check how the company will use the amount raised from the IPO, such as repayment of debt, business expansion or other corporate purposes.
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Understand business models: It is important to understand the company’s business model and its possible opportunities in the market.
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Check background of management and promoters: Evaluate the qualifications and experience of the company’s management and promoters.
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Check the company’s financial health: Analyze the company’s financial performance, profitability and development possibilities.
Physicswala’s potential IPO can be an important opportunity for investors, but proper hard work and analysis before investment is necessary.
