The acquisition will involve the purchase of 1,100 equity shares of Sarrthi IAS. Following the completion of the Tranche II acquisition, Physicswallah’s shareholding in Sarrthi IAS will increase from 40% to 51%, after which Sarrthi IAS will become a subsidiary of the company.
Physicswallah had entered into a Shareholders’ Agreement and Share Purchase Agreement with Sarrthi IAS and its promoters on September 2, 2025, for acquiring up to 85% of the fully diluted equity share capital of the company in six tranches during financial years 2026 to 2031.
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The company has already completed Tranche I of the transaction and currently holds a 40% stake in Sarrthi IAS, making it an associate company.
The board has approved an addendum to the Share Purchase Agreement to record mutually agreed revisions related to the valuation methodology and purchase consideration applicable to Tranche II. Other terms of the transaction documents, including acquisition of remaining tranches through the prescribed EBITDA-based valuation mechanism, will remain unchanged.
Sarrthi IAS operates in the education sector and provides online and offline coaching and test preparation services for civil services and other competitive examinations.
According to the company, Sarrthi IAS had a turnover of ₹76.52 crore in financial year 2025-26, compared with ₹28.46 crore in FY2024-25 and ₹1.04 crore in FY2023-24.
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The target company had a paid-up share capital of ₹1 lakh and net worth of ₹33.96 crore. The transaction does not fall under related party transactions, and the acquisition is being undertaken at arm’s length based on an independent valuation report.
Physicswallah said the acquisition is aimed at strengthening its presence in the UPSC and civil services examination preparation segment.
The remaining tranches of the acquisition will be undertaken in accordance with the transaction documents, with the company proposing to acquire up to an 85% stake in Sarrthi IAS by FY2031.
Shares of Physicswallah Ltd ended at ₹135.20, down by ₹1.75, or 1.28%, on the BSE.
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