Eyewear brand Lenskart commenced its Initial Public Offering (IPO) for public bidding on October 31. By 11 a.m. on the first day, the ₹7,278 crore issue was subscribed at 9%, according to NSE data. Investors have applied for 88.55 lakh shares out of a total offer of 9.98 crore shares. Retail investors have subscribed to 37% of their allocation, while Non-Institutional Investors (NIIs) booked 8%. Qualified Institutional Buyers (QIBs) have yet to make significant bids. Lenskart aims to raise ₹7,278 crore, which includes a fresh issue of ₹2,150 crore and an offer for sale (OFS) of 12.75 crore shares.
The IPO will remain open from October 31 to November 2, with a price band set between ₹382 and ₹402 per share, valuing the company at approximately ₹70,000 crore. The minimum investment required is for 37 shares, amounting to about ₹14,874. The allotment date is scheduled for November 5, and the listing date is November 10. In the grey market, Lenskart’s unlisted shares were trading at a premium of 18.41% above the IPO price, as reported by Investorgain. This figure is an increase from 17.41% the previous day and 11.94% the day before. IPO Watch indicated a grey market premium of around 11.45%. Analysts highlight strong interest in the IPO due to Lenskart’s robust brand and technology-driven business model.
Shravan Shetty from Primus Partners noted that the stable GMP, despite high valuation, reflects investor confidence. Siddharth Maurya from Vibhavangal Anukulakara emphasized that while Lenskart is experiencing rapid global growth, its long-term success will depend on profitability and cost management. Shivani Nyati from Swastika Investmart assigned a ‘Neutral’ rating, citing high valuation in spite of solid performance. Valuation concerns persist, with experts pointing out Lenskart’s high P/E ratio of 230. Even with a tripling of profits in coming years, the P/E would still be about 70, which is deemed expensive.
CEO Peyush Bansal stated to CNBC-TV18 that the company has achieved a 90% EBITDA CAGR and has ambitious long-term growth plans, asserting that their goal is to create value for customers and shareholders, while the market determines valuation. Prior to the IPO, Lenskart secured ₹3,268.4 crore from 147 anchor investors, with notable global entities including the Government of Singapore, BlackRock, Goldman Sachs, Fidelity, Nomura, JP Morgan, and T Rowe Price among others.