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Think Investments has invested ₹136 crore in edtech unicorn PhysicsWallah as part of a pre-IPO funding round. The investment comes as the company prepares for its IPO scheduled to open on 11 November.
Sources said Think Investments purchased 10.7 million equity shares from 14 PhysicsWallah employees at ₹127 per share. This price represents a 17 percent premium over the upper end of the IPO price range valuing the total transaction at ₹136.17 crore. The deal will give Think Investments a 0.37 percent stake in the company.
The share transfer took place on 4 November following a share purchase agreement signed a day earlier. The transaction was conducted through ‘Think India Opportunities Master Fund LP’ a fund managed by the investment firm.
Think Investments which manages approximately US$4 billion in assets focuses on technology driven and growth oriented companies. In India, the company claims to have invested in several leading startups, including Swiggy, FirstCry, Urban, PharmEasy, Spinny, Meesho, and Dream11.
PhysicsWallah founded by Alakh Pandey and Pratik Maheshwari to promote the technical education sector is preparing for a ₹3,480 crore (approximately $1.4 billion) initial public offering (IPO). The price range is set between ₹103 and ₹109 per share, giving the company an upper valuation of over ₹31,500 crore (approximately $3.1 billion). The issue comprises a fresh issue of ₹3,100 crore (approximately $3.8 billion) and an offer for sale of ₹380 crore (approximately $3.8 billion) by the co-founders.
The promoters' combined shareholding will decline from 80.62% to 72% after the IPO. None of the initial investors will sell their stake in the offering. PhysicsWallah IPO will close on 13 November with anchor investor allocation scheduled for 1O November which is today.
