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PhysicsWallah an edtech startup plans to price its initial public offering (IPO) within a price band of ₹103 to ₹109 per share. The issue size is around ₹3480 crore. The issue will open for subscription on November 11 and will close on November 13. At the upper end of the price band the company’s valuation will be around ₹31500 crore. Anchor investor allocation & expected listing date The anchor investor portion will be allocated on November 10 retail/public subscription will open on November 11. Allotment of shares will likely be completed by November 14 and the stock will likely list on the bourses on November 18. Allocation of proceeds from the IPO PhysicsWallah will be using the proceeds from the IPO to expand its business in the following areas: The company will spend ₹460.5 crore to open new offline/hybrid learning centres and ₹548.3 crore as lease payments for existing learning centres. Additionally ₹47.2 crore will be transferred to subsidiary Xylem Learning (₹31.6 crore for opening new learning centres; ₹15.5 crore as lease payments). For subsidiary Utkarsh Classes & Edutech it will be spending ₹33.7 crore on lease-related payments. The company is also set to spend ₹200.1 crore towards infrastructure including servers/cloud and ₹710 crore on marketing. Grey-market activity The stock is trading at a premium of -8% in the grey market with a grey-market premium (GMP) of -₹9 (expected listing gain of -8.26%) currently being observed. What to expect now? As the Indian edtech landscape is evolving at a fast pace one can see that the company is betting big on growth with the huge fundraise and aggressive expansion plans. Post-listing performance customer growth metrics and monetisation of the offline/hybrid centres can be some of the key factors to keep an eye on. Execution risks competition regulatory changes in education etc. are some other aspects to consider. As the IPO subscription period approaches retail investors could take the ~8% grey market signal as a positive indication on the interest around the issue-but as always please do your own research before investing.