Shares of PhysicsWallah surged as much as 17% after the edtech firm scrapped plans to lend directly to students through its finance unit and said it would instead partner with regulated non-banking financial companies, reducing balance sheet and credit-related risks.
The stock was last up 15.9% at 106.67 rupees as of 12:10 p.m. IST on Thursday, and was set for its biggest intraday percentage rise since January 22.
The shift in strategy comes after the firm late last month announced an investment of about 1.20 billion rupees ($12.53 million) in its wholly-owned subsidiary FinZ Finance.
PhysicsWallah said it would continue to operate as a technology platform connecting students with regulated lending partners, while the future strategic direction of FinZ Finance would be decided later.
In May, it reported a 75% year-on-year narrowing in its fourth-quarter loss to 748.9 million rupees and a 51% jump in revenue, driven by the rapid expansion of its offline centres and growth in premium online courses.
($1 = 95.7350 Indian rupees)
Reuters
