The monitoring agency has flagged a deviation in how the PhysicsWallah IPO money was used. CARE Ratings says ₹71.74 crore went to a purpose not named in the offer document. The company says it has put the money back.
What the monitoring agency found
A monitoring agency is an outside firm that checks if an IPO company spends the money as promised. CARE Ratings filed its report on 4 November 2026 for the quarter ended 30 September 2026.
It answered "No" to whether all spending matched the offer document. The deviation is less than 10% of the ₹3,100 crore fresh issue and of the unused amount.
The money was paid from the IPO monitoring account to buy more shares in an existing subsidiary. The agency's comments name the company as Guiding Light Education Technologies. That purpose is not among the objects listed in the offer document.
The agency also says there was no board approval for the investment in this company. It says the same for spending on general corporate purposes, which the prospectus requires.
What the company says
The company moved ₹71.74 crore from its own current account back to the IPO monitoring account on 30 October 2026. The board says the matter has been rectified. It has noted the agency's observations.
| Item | Figure |
|---|---|
| Fresh issue | ₹3,100 crore |
| Used in July–September 2026 for the stated objects | ₹179.71 crore |
| Unused on 30 September 2026 | ₹1,861.36 crore |
| Paid out for another purpose | ₹71.74 crore |
| Returned to the account | 30 October 2026 |
A deviation flagged by an agency is not a finding of fraud. Here the amount was small and was returned within the same reporting cycle.
Other points in the report
The agency notes that the company made an EBITDA loss of ₹57 crore in the first half of FY27 on a consolidated basis. It also repeats a tax matter. The company got an income tax demand, revised to ₹192 crore, and has appealed. It has deposited ₹19.27 crore.
The report is based on the company's own certificates and a chartered accountant's limited-assurance certificate. The agency says it does not audit the figures. You can read the full monitoring agency report on BSE.
What our data shows
PhysicsWallah listed on 18 November 2025 at ₹145, 33% above the ₹109 issue price. The shares were at ₹127.41 on 4 November 2026. Details are on the PhysicsWallah IPO page.
What happens next
Companies file a monitoring agency report every quarter until the IPO money is fully used. The next one covers October to December 2026. Track more listed issues on our mainboard IPO list.
