Physicswallah shares zoom 15%; analysts outline key technical levels

Shares of Physicswallah Ltd surged 15.06 per cent in Monday's trade to hit a high of Rs 144, extending gains for the newly listed edtech player. At this price, the stock remains 32.11 per cent above its initial public offering (IPO) issue price of Rs 109.

The company made its market debut on November 18 after a Rs 3,480-crore IPO, which saw moderate subscription. The issue comprised a fresh equity sale of 28.44 crore shares worth Rs 3,100 crore and an offer-for-sale (OFS) of 3.49 crore shares totalling Rs 380 crore.

A few analysts stated that the counter showed strength on technical charts following today's sharp move. Ravi Singh, Chief Research Officer at Mastertrust, noted that the stock appears strong on charts and could climb towards the Rs 150 level. He advised investors to maintain a stop loss at Rs 135 to manage near-term volatility.

Sebi-registered analyst AR Ramachandran also highlighted a bullish structure. "Physicswallah's stock price is slightly bullish on daily charts with strong support at Rs 123. A daily close above the resistance of Rs 139 could lead to a target of Rs 162 in the near term," he said.

The company intends to utilise the IPO proceeds for expansion of its offline and hybrid learning centres, fit-outs at new facilities, lease payments at existing centres and investments in subsidiary Xylem Learning. A portion of the funds will also go towards general corporate purposes.

Founded in 2016 by educator Alakh Pandey, PhysicsWallah has expanded from a YouTube teaching initiative into a broad-based edtech platform with digital courses, offline centres and hybrid learning formats.