Lenskart is gearing up for its highly anticipated IPO market debut on Monday, November 10, as investors eagerly anticipate potential listing gains amidst fluctuating grey market premium movements. The IPO garnered significant interest from investors, with an overall subscription rate of 28.27 times, indicating strong demand across various categories.
Commencing on October 31 and closing on November 4, the IPO finalized its allotment on November 6, allowing applicants to verify their status through the BSE website or MUFG Intime India Private Limited’s portal. Despite the initial enthusiasm following the robust subscription, the grey market sentiment has been waning.
The grey market premium, reflecting the premium investors are willing to pay for unlisted shares, saw a notable decline over the past week. Initially set at Rs 95 on October 31, suggesting a potential listing gain of 23.63%, it plummeted to Rs 85 on November 1, further dropping to Rs 59 on November 3, and eventually decreasing to Rs 10.5 as of November 7. Based on the latest GMP, the projected listing price is approximately Rs 412.5, indicating a modest 2.61% uptick from the issue price of Rs 402.
While the short-term outlook appears subdued, analysts maintain a cautious optimism regarding Lenskart’s long-term prospects. Shivani Nyati, Head of Wealth at Swastika Investmart, highlighted Lenskart’s position as India’s leading organized eyewear retailer with a robust omni-channel business model integrating online and offline operations. She emphasized the fast-growing eyewear market in India, presenting significant expansion opportunities. Nyati noted that post-listing performance and execution would be pivotal in determining the company’s value beyond the initial listing surge.
Considering the elevated valuation, the focus shifts to Lenskart’s post-listing execution, profitability, and global scaling for sustained long-term growth. It is advised to seek guidance from qualified brokers or financial advisors before making investment decisions.