Physicswallah Ltd to Acquire Additional Stake in Sarrthi IAS, Moving to Subsidiary Status
Physicswallah Limited has announced that its Board of Directors has approved the acquisition of an additional 11% stake in Guiding Light Education Technologies Private Limited, popularly known as Sarrthi IAS. This transaction marks a significant milestone in the company’s strategy to expand its presence in the civil services and UPSC exam preparation segment.The acquisition pertains to Tranche II of a multi-stage agreement originally established in September 2025. Under the initial Transaction Documents, Physicswallah Limited agreed to acquire up to 85% of the fully diluted equity share capital of Sarrthi IAS across six tranches between the financial years 2026 and 2031.
Strategic Expansion and Ownership Shift
The company currently holds a 40% stake in Sarrthi IAS following the completion of Tranche I, which established the entity as an associate of Physicswallah Limited. The acquisition of 1,100 equity shares during Tranche II will increase the company's holding to 51%. This shift in ownership will result in Sarrthi IAS becoming a subsidiary of Physicswallah Limited.The Board has approved an Addendum to the Share Purchase Agreement (SPA) to record mutually agreed revisions regarding the valuation methodology and purchase consideration for Tranche II. All other terms remains unchanged, including the EBITDA-based valuation mechanism for subsequent tranches.
Transaction Details
The acquisition will be executed as a cash transaction. The company will acquire 1,100 equity shares at an aggregate purchase consideration of INR 71,81,47,100. Sarrthi IAS, which was incorporated in June 2023, operates integrated online and offline learning platforms for competitive examinations.| Metric | Details |
|---|---|
| Target Entity | Guiding Light Education Technologies Private Limited (Sarrthi IAS) |
| Paid-up Share Capital | INR 1,00,000 |
| Net Worth | INR 33,96,10,548 |
| Current Turnover | INR 76,51,61,325 |
| Tranche II Acquisition | 1,100 equity shares (11% additional stake) |
| Purchase Consideration | INR 71,81,47,100 |
| Post-Acquisition Holding | 51% |
Sarrthi IAS Financial Performance
Sarrthi IAS has shown significant growth in its turnover over the last three financial years as it established its presence in the education industry:| Financial Year | Turnover (In Crores) |
|---|---|
| F.Y. 2023-24 | 1.04 |
| F.Y. 2024-25 | 28.46 |
| F.Y. 2025-26 I | 76.52 |
PWL Stock Price Movement
Physicswallah Limited shares tumbled 0.96% today to settle at ₹135.29. The stock saw a total turnover of 6.93 million shares as it navigated an intraday range between ₹133.63 and ₹138.95.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.