New Delhi, Nov. 10 -- Physics Wallah's Rs.3,480-crore initial public offering is set to test whether investors have appetite for a prominent "affordable edtech" story. Early signals suggest the market remains cautious.

The grey market premium (GMP) for the company's shares has recently halved, slipped to just Rs.5 as of 8 November from Rs.9 two days prior. This erosion of confidence points to a modest expected listing gain of only 4-5% at a projected price of around Rs.114 per share.

The shares will be offered in the price band of Rs.103- Rs.109 apiece, with the offer opening on Tuesday. The total issue includes a substantial Rs.3,100 crore fresh issue of shares and a smaller Rs.380 crore offer for sale by its two founders, Alakh Pandey...