Physicswallah Limited has submitted its Monitoring Agency Report for the quarter ended September 30, 2026. The report, issued by CARE Ratings Limited, details the utilization of funds raised from the Initial Public Offer (IPO). It confirms that the majority of the proceeds are being used in line with the offer document’s disclosures, with some minor deviations noted and subsequently rectified by the company.
Physicswallah Limited Submits IPO Proceeds Monitoring Report
Physicswallah Limited has officially released its Monitoring Agency Report for the quarter that concluded on September 30, 2026. This report, a requirement under SEBI regulations, provides an overview of how the proceeds from the company’s Initial Public Offer (IPO) have been utilized. The monitoring was conducted by CARE Ratings Limited, the appointed Monitoring Agency.
Key Findings and Utilisation
The report indicates that the company’s utilization of IPO proceeds is largely in accordance with the disclosures made in the offer document. During the second quarter of fiscal year 2027 (Q2 FY27), Physicswallah Limited utilized ₹179.71 crore towards the objects of the issue. A notable point addressed in the report is an instance where ₹71.74 crore was initially paid from the IPO Monitoring Account towards purposes not explicitly defined in the offer letter, specifically for the acquisition of an additional stake in an existing subsidiary. However, the company subsequently transferred and reimbursed this amount to the IPO Monitoring Account on October 30, 2026, rectifying the deviation.
Financial Position and Investment Details
As of September 30, 2026, the total unutilized amount from the IPO proceeds stood at ₹1,861.36 crore. The report details the investment of these unutilized funds in various instruments, including fixed deposits with HDFC Bank and Kotak Bank, totaling ₹1,760.00 crore. Other funds are held in the monitoring account, current accounts, and public offer accounts.
Objects of the Issue and Progress
The report breaks down the utilization of funds against various objects of the issue, including capital expenditure for new centers, lease payments, investment in subsidiaries like Xylem Learning Private Limited and Utkarsh Classes & Edutech Private Limited, server and cloud infrastructure costs, and marketing initiatives. For most objects, the progress is reported as ‘Ongoing’ with completion dates extending up to December 31, 2028 and March 31, 2027/2028 for some strategic initiatives.
General Corporate Purpose (GCP)
Details of utilization for General Corporate Purpose (GCP) also form part of the report. The total amount earmarked for GCP was ₹52.51 crore, covering employee benefit expenses, professional fees, goods and services tax, and capital expenditure. The report clarifies that ₹0.33 crore classified under GCP was previously considered as capital expenditure for new offline centers but was reclassified, with no board approval provided for this reclassification.
Investor Information
The report also includes disclaimers from CARE Ratings Ltd, emphasizing that the report is based on information provided by the issuer and believed to be accurate, but does not constitute an audit or independent verification. The company, Physicswallah Limited, has also provided its comments on the observations, generally noting that the Board has taken due note of the monitoring agency’s observations.
Source: BSE
