Lenskart’s shares had a lackluster debut on Dalal Street today, opening at Rs 390 on the BSE, which was 2.98% lower than the issue price. Similarly, on the NSE, the stock commenced trading at Rs 395 per share, slightly below the issued price of Rs 402.
The subdued listing did not come as a surprise to many investors due to Lenskart’s grey market premium (GMP) dropping sharply prior to the debut. Despite strong demand during the IPO period, the decrease in GMP hinted at a weak start for the stock.
During the three-day bidding period from October 31 to November 4, Lenskart’s Rs 7,278-crore IPO garnered significant interest from investors across different categories. The IPO was oversubscribed more than 28 times, with the qualified institutional buyers (QIB) category oversubscribed by 45 times. Non-institutional investors and retail participants subscribed 18.23 times and 7.54 times, respectively, while the employee quota saw a demand of 4.96 times.
Through a fresh issue of Rs 2,150 crore and an offer for sale of 12.75 crore shares, the eyewear company raised funds. The IPO was priced between Rs 382 and Rs 402 per share, valuing the company at approximately Rs 70,000 crore.
Despite the strong IPO, Lenskart’s high valuation has raised concerns among several analysts. Ambit Capital, in particular, issued a ‘Sell’ rating on Lenskart before its listing, highlighting limited upside potential at current valuations. They set a target price of Rs 337 per share, indicating a possible 16% downside from the upper end of the IPO price band.
Established in 2010, Lenskart is a prominent eyewear retailer in India, with a significant online presence complemented by numerous offline stores. Offering services such as home eye tests and virtual try-ons, Lenskart has built a robust digital and retail customer base, operating 2,137 stores in India and 669 outlets abroad.
In FY25, Lenskart recorded a net profit of Rs 297 crore, a substantial improvement from a Rs 10 crore loss in FY24. The company’s revenue surged by 22% year-on-year to Rs 6,625 crore, primarily driven by strong domestic demand and expanding international operations.