The debut public offering (IPO) of Lenskart Solutions Ltd garnered full subscription within the first day, driven by strong interest from institutional and retail investors. By 3:16 pm on the BSE, the IPO was oversubscribed by 1.06 times in total.
Early enthusiasm was predominantly seen in the Qualified Institutional Buyers (QIB) segment, with a subscription rate of 1.42 times, followed by retail investors at 1.13 times. Employee participation stood at 0.97 times, while the Non-Institutional Investor (NII) category lagged behind at 0.30 times, a trend that may change as bidding concludes.
The IPO, which commenced today and will conclude on November 4, has a price band of Rs 382 to Rs 402 per share, with a lot size of 37 shares for retail investors. The total issue size amounts to Rs 7,278 crore, including a fresh issue of approximately Rs 2,150 crore and the remainder as an offer for sale from existing shareholders.
In the unofficial market, Lenskart is commanding a premium of about Rs 72, indicating potential listing gains of around 18% at the upper end of the price range. However, Grey Market Premium (GMP) trends are subject to market sentiment and may fluctuate with broader conditions.
Lenskart has established India’s largest organized eyewear retail network by blending online reach with a rapidly growing offline presence. In FY25, the company recorded revenue of roughly Rs 6,652 crore and a net profit of Rs 297 crore, marking a turnaround from previous losses.
A significant portion of the proceeds from the fresh issue will be allocated to store expansion, enhancing the supply chain, investing in the brand, and expanding into international markets, particularly in West Asia and Southeast Asia.
Despite the company’s scale, concerns linger over valuations. Gaurav Garg, Research Analyst at Lemonn Markets Desk, highlighted that Lenskart’s IPO of Rs 7,278 crore emphasizes scale over value. Trading at 230x FY25 Price-to-Earnings ratio, Lenskart’s valuation surpasses global leaders like Essilor Luxottica. With nearly 70% of the issue being secondary, early investors are exiting at a substantial premium, raising questions about stretched fundamentals.
Brokerages have pointed out that recent profitability includes one-time accounting gains, underscoring the need for sustained earnings stability in the upcoming quarters. While uncertainties remain, the long-term potential in the eyewear market remains vast, considering a significant portion of the population either not wearing glasses or relying on unorganized markets.
The final momentum in institutional bidding will influence pricing expectations leading up to the listing.