The Red Herring Prospectus (DRHP) filed by Edtech company Physicswalllah, which is seen to raise of 3,820 crores through an early public offering (IPO), has thrown many concerns ranging from unsecured loans to subsidiaries.
In the company’s listing document, a loan of ₹ 127 crore has been mentioned for subsidiaries including Xylem, Preponline, Ineuron and Nowlow Planet.
In addition, prospectus has also revealed details about subsidiaries that may be a matter of serious concern for potential customers.
For example, it states that the assistant Ineuron “is no active business operating or employee as the date of the balance sheet and only continues through its heritage course material,” saying that the company cannot even go further.
According to DRHP, “The ability of Ineuron to meet its liabilities within a period of one year from the date of the balance sheet, when they fall within a period of one year, depends on the receipt of receipts and other uncertain cash flows, according to” DRHP.
‘Property was not disclosed’
Another subsidiary penpensil has not disclosed its assets, showing the prospectus. “Penpensils have not maintained a record with adequate details of property, plant and equipment or asset identification number to make identity possible” and “during the financial year 2023, not physically verified by penplacement management,” the company revealed.
The loan agreement for the penplacement also does not mention the schedule of repayment.
In addition to monetary risks, there are other concerns.
The company was under scanner for incidents that threatened the safety of the students.
Although the expected SOPs and measures were taken to overcome such risks, there was no guarantee that the company would have no “accidents or safety violations” in its prospectus.
The company’s plan is in the latest issue and 3,100 crore and through proposal for sale of 720 crores.
Published – 09 September, 2025 10:53 PM IST
