Emmvee muted, Physicswallah exuberant

Two contrasting listings marked the market mood today — one flat, one exuberant — offering a telling snapshot of investor behaviour in India’s IPO market.

Emmvee Photovoltaic, the more fundamentally stable of the two, listed exactly at its IPO price of Rs.217 on the BSE, briefly inched up to Rs.218, and slipped to Rs.211, reflecting the tepid demand during the issue. Subscription was muted at 1.1x overall, with HNIs barely participating (0.3x) and retail remaining under-subscribed (0.97x). This was broadly in line with our IPO view that near-term gains would be difficult, with only long-term investors suited to the offering.

Emmvee enters the market with sizeable module and cell capacities — 6 GW effective module capacity and 2.1 GW cell capacity — though part of its installed capacity remains technologically obsolete. The order book has grown modestly to 5.36 GW, signalling visibility but not the kind of surge that excites short-term investors. The flat listing mirrors a wider trend: the solar manufacturing IPO space, after a period of overvaluation, is seeing investors demand clearer profitability triggers and policy stability before assigning aggressive multiples.

In sharp contrast, PhysicsWallah delivered the day’s blockbuster debut. Against an IPO price of Rs.109, the stock listed at Rs.143, rallied to Rs.162, before settling around Rs.141 as early investors booked profits. Despite its high brand recall and strong digital reach, subscription too was modest at 1.81x, driven largely by institutional appetite (QIBs 2.7x) while HNIs stayed cautious at 0.48x. Our IPO analysis had flagged concerns on losses and valuation, and today’s intraday swing validated that sentiment: momentum-driven buying at the open, followed by quick profit-taking.

PhysicsWallah — which operates across 13 competitive exam categories including JEE, NEET, UPSC, CA and defence — continues to enjoy immense franchise power, but the business still lacks earnings visibility in the near term. The sharp listing, followed by immediate selling, indicates that traders dominated Day 1, not long-term investors.

The day ultimately underscored an important realisation in the IPO market:
the fundamentally stronger business (Emmvee) saw a muted listing, while the high-buzz, loss-making name (PhysicsWallah) enjoyed a premium … only to give up gains quickly.

Investor participation patterns reinforced this divergence: QIBs remained the only consistent buyers, while HNIs — traditionally the IPO market’s speculators — stayed largely on the sidelines.

In the long run, as always, only earnings strength will determine which of today’s debutants sustain their valuations.