Edtech company PhysicsWallah witnessed a major block deal on Wednesday, August 26, as early investor Lightspeed Venture Partners exited its entire holding in the company for nearly ₹550 crore.
According to NSE data, Lightspeed Opportunity Fund II LP sold approximately 4.67 crore shares, representing a 1.61% stake, at ₹117.72 per share. The transaction was valued at around ₹549.73 crore.
Who Bought PhysicsWallah Shares?
The shares sold by Lightspeed were picked up by a group of domestic and international institutional investors. ICICI Prudential Mutual Fund emerged as the largest buyer, acquiring around 2.2 crore shares, equivalent to approximately 0.75% of PhysicsWallah's paid-up equity. The purchase was worth nearly ₹259 crore.
Goldman Sachs was another major participant in the transaction. Five Goldman Sachs investment schemes collectively purchased around 89.67 lakh shares, representing approximately 0.30% of PhysicsWallah, for about ₹105.56 crore.
Other institutional investors involved included Morgan Stanley Asia Singapore, Societe Generale, Citigroup Global Markets Mauritius, Tata AIA Life Insurance Company, New York State Teachers Retirement System and several global investment funds.
PhysicsWallah Shares Rise Despite Large Block Deal
Interestingly, the large stake sale did not trigger a major negative reaction in the stock. PhysicsWallah shares rose as much as 3.94% to ₹126.13 during Wednesday's trading session amid heavy volumes.
The strong institutional participation appears to have helped absorb the shares being sold by Lightspeed, limiting potential selling pressure.
What Does Lightspeed's Exit Mean?
Lightspeed's complete exit marks an important development for PhysicsWallah, particularly because the venture capital firm was an early investor in the edtech company. The transaction, however, does not necessarily indicate a negative view of the business, as institutional investors were willing to acquire the entire block.
Founded by Alakh Pandey and Prateek Maheshwari, PhysicsWallah operates across online education, test preparation and offline learning centres. The company has been working to improve profitability while continuing to expand its education ecosystem.
The block deal also highlights growing institutional interest in India's listed technology and new-age companies. With major investors such as ICICI Prudential Mutual Fund and Goldman Sachs participating, the transaction will likely remain closely watched by market participants.
