PhysicsWallah Shares Jump 16%, Market Value Rises ₹4,426 Crore After Lending Strategy Shift

Mumbai: Shares of PhysicsWallah witnessed strong buying interest on Thursday after the company announced a restructuring of its student lending operations.

The stock climbed 15.64 percent to close at Rs 106.50 on the BSE. During the trading session, it touched a high of Rs 108.45, reflecting a gain of 17.75 percent.

On the NSE, the stock ended 15.66 percent higher at Rs 106.46.

Following the rally, the company's market capitalisation increased by Rs 4,425.84 crore, taking its total market value to Rs 30,763.60 crore.

Company To Exit Direct Student Lending

PhysicsWallah informed stock exchanges that it plans to move away from directly financing students.

Instead, the company has partnered with multiple regulated Non-Banking Financial Companies (NBFCs) that will provide education loans to students.

According to the company, this change will significantly reduce balance-sheet exposure and credit-related risks.

The move marks a reversal of the company's earlier strategy of building its own student financing business.

Recent Investment Decision Revisited

The announcement comes shortly after PhysicsWallah said it would invest Rs 120 crore into its wholly-owned subsidiary, FinZ Finance Private Limited, which handles student financing activities.

However, after discussions with stakeholders and partners, the company decided to rethink its approach.

PhysicsWallah stated that the future direction of FinZ Finance will be decided later, subject to board approvals and regulatory clearances.

Focus Returns To Core Education Business

Co-founder Prateek Maheshwari said the company received feedback that its main strength lies in creating educational communities and growing its online learning business.

He added that lending activities are better managed by specialised and regulated NBFCs that possess strong underwriting and risk-management capabilities.

Maheshwari said prudent use of capital and protecting shareholder interests remain top priorities for the company.

Investors Welcome Risk Reduction

Market participants reacted positively to the announcement, viewing it as a step towards reducing financial risks and improving operational focus.

By partnering with established lenders instead of taking direct credit exposure, PhysicsWallah can concentrate on expanding its education platform while leaving loan management to financial institutions.

The sharp rise in the stock price suggests investors believe the revised strategy could strengthen the company's long-term growth prospects and financial stability.

Disclaimer: This article is based on company disclosures and market data. Investors should evaluate risks carefully before making decisions.