Lenskart's IPO opened to a lukewarm response, subscribed only 9% on its first day, mainly by retail investors. The Rs 7,278-crore public issue is priced at Rs 382-Rs 402 per share. A modest grey market premium suggests cautious optimism.
The much-awaited Lenskart IPO finally opened for public bidding on Friday (October 31), but the response on Day 1 was lukewarm. Despite the buzz around the eyewear giant’s stock market debut, the Rs 7,278-crore public issue was subscribed only 9% as of 11 am, according to NSE data.
Retail investors led the way, booking 37% of their quota, while non-institutional investors picked up 8%. However, institutional buyers are yet to make any major moves, keeping the overall subscription low for now.
IPO details: Big brand, bigger ambitions
Lenskart's public offer includes a fresh issue of Rs 2,150 crore and an offer-for-sale of 12.75 crore shares, priced between Rs 382 and Rs 402 per share. The company, co-founded by Shark Tank India judge Peyush Bansal, is targeting a valuation of nearly Rs 70,000 crore.
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The IPO closes on November 2, with allotment expected on November 5 and listing on November 10.
Investors can apply for a minimum of 37 shares, requiring an investment of around Rs 14,874 at the upper price band.
Grey market shows mild optimism
In the unofficial market, Lenskart's shares are drawing moderate buzz. The grey market premium (GMP), an early indicator of listing sentiment, rose slightly to Rs 74 per share, or around 18% above the IPO price, according to data from Investorgain.
This uptick suggests cautious optimism, even as analysts remain divided over whether the brand's steep pricing leaves much on the table for new investors.
Should you apply? Here's what experts say
Market watchers are split on the IPO's appeal.
"Lenskart is not just a retail company anymore; it’s a tech-driven consumer brand with global potential," said Shravan Shetty, Managing Director at Primus Partners. "The market sees it more like a growth story than a traditional retailer."
Others, however, are urging restraint. "The company's expansion is impressive, but profitability needs to catch up," noted Siddharth Maurya, Founder and MD of Vibhavangal Anukulakara. "High valuations could limit near-term gains."
Shivani Nyati, Head of Wealth at Swastika Investmart, maintained a 'Neutral' stance, citing "excellent fundamentals but overstretched pricing."
Valuation debate: Is it too expensive?
At the top end of the price band, Lenskart's P/E ratio stands at 230, a valuation even some tech startups would hesitate to claim. CNBC-TV18 estimated that even if profits triple in the next few years, the P/E would still hover around 70, leaving limited upside for early investors.
Responding to the concerns, CEO Peyush Bansal downplayed valuation talk.
"Our job is to create value for customers, and increasingly, for shareholders too. As for valuation, the market will decide," he told CNBC-TV18.
He also pointed out that Lenskart's EBITDA growth of 90% CAGR and its expanding footprint in India and abroad reflect the brand’s long-term strength.
