- Details of the Anchor Round
- What Are Anchor Investors and Why They Matter
- Final Takeaways
PhysicsWallah is a leading education technology company in India, focused on making quality education affordable and accessible for competitive exam preparation like JEE and NEET. With over 9.88 crore YouTube subscribers and 24.3 lakh paid users as of June 30, 2025, it stands among India’s top 5 education companies by revenue. The company plans to raise up to ₹3,480 crore through its IPO, which includes a fresh issue of shares and an offer for sale by promoters.
The anchor investor round is a crucial part of this IPO process, where large institutional investors buy shares ahead of the public offering. PhysicsWallah raised ₹1,562.85 crore (45% of the total IPO size) from anchor investors by allotting 14.33 crore shares at ₹109 per share. This early funding round gives confidence to the market about the IPO’s demand and investors.
This blog covers the details of the anchor funding round, the main investors involved, the significance of anchor investors, and concludes with the key takeaways for investors and market watchers.
Details of the Anchor Round
The anchor round concluded on November 10, 2025, raising ₹1,562.85 crore for PhysicsWallah by selling 14,33,80,733 shares at ₹109 each.
The single biggest investor was a foreign institutional investor, Smallcap World Fund Inc., which invested ₹154.76 crore and received 1.42 crore shares, accounting for 9.9% of the total anchor funding raised..
Domestic Mutual Funds Played a Major Role
- Fourteen mutual funds with 35 different schemes invested in the anchor round.
- They contributed ₹867.07 crore, which is 55% of the total anchor funding.
- The largest domestic scheme investor was Nippon Life India Trustee Ltd - Nippon India Small Cap Fund, investing ₹83.65 crore.
Top Foreign Institutional Investors (FIIs)
Apart from the Smallcap World Fund, prominent FIIs included:
- Goldman Sachs India Equity Portfolio: ₹79.76 crore
- TIMF Holdings: ₹76.76 crore
- Franklin Templeton Asian Smaller Companies Fund: ₹38.70 crore
Other Domestic Institutional Investors
Insurance companies also participated actively:
- Kotak Mahindra Life Insurance: ₹20 crore
- Axis Max Life Insurance High Growth Fund: ₹15 crore
- Bharti AXA Life Insurance: ₹15 crore
Top Mutual Fund Parent Companies
- ICICI Prudential led with ₹174.77 crore across 3 schemes
- Kotak Mahindra Trustee Company: ₹154.76 crore
- Nippon Life Trustee: ₹154.76 crore
- Aditya Birla Sun Life Trustee: ₹78.77 crore
For detailed information about the IPO, visit PhysicsWallah’s official IPO page at INDmoney.
Lock-In Period for Anchor Investors
- Half the shares allotted to anchor investors are locked in for 90 days from allotment.
- The remaining half are locked in for 30 days from allotment.
This lock-in ensures that anchor investors maintain stability in the stock price post-listing.
What Are Anchor Investors and Why They Matter
Anchor investors are large, reputable investors like mutual funds, sovereign wealth funds, foreign institutional investors (FIIs), and insurance companies that buy a significant portion of IPO shares before the public offering opens. Their participation is important because:
- It indicates strong investor confidence and sets a positive tone for the IPO.
- Enhances credibility due to their reputation and expertise.
- Helps stabilize the stock price after the IPO listing through lock-in agreements.
- Attracts retail investors by reducing perceived risk.
Final Takeaways
PhysicsWallah’s anchor investor round demonstrates strong backing from well-known domestic and foreign institutional investors, raising ₹1,562.85 crore. The diversity of anchor investors and the significant domestic mutual fund participation highlight robust market confidence in this education tech player’s growth story.
The lock-in period ensures initial stability in share prices, benefiting long-term investors. For retail investors, the anchor round’s success is an important signal to watch as the IPO unfolds.
With its strong market position, large student base, and aggressive expansion plans, PhysicsWallah's IPO, backed by this anchor round, is expected to generate considerable interest in the investment community.
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