Lenskart's IPO is seeing strong investor interest as it enters its second day, with the issue already oversubscribed. The IPO, which opened on October 31, 2025, will remain open for subscription until November 4, 2025. The price band is set at ₹382 to ₹402 per share.
Subscription Status
By the end of Day 1, the IPO was subscribed 1.13 times. According to the data from BSE, the company received bids for 11,23,58,344 shares against the 9,97,61,257 shares on offer. The retail portion was subscribed 1.31 times, the NII portion was booked 41%, and the QIB portion received 1.42 times bids. The employee portion was subscribed 1.10 times. On Day 2, the IPO has been subscribed 1.19 times as of 10:03 AM.
Grey Market Premium (GMP)
The grey market premium (GMP) for Lenskart's IPO is currently ₹85. This indicates that shares are trading at ₹85 higher than their issue price of ₹402 in the grey market. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Lenskart's share price is ₹487 apiece, which is 21.14% higher than the IPO price. The GMP has fluctuated, with a high of ₹108 on October 27 and a low of ₹48 on October 29.
IPO Details
The Lenskart IPO is a book-built issue worth ₹7,278.02 crore. The IPO includes a fresh issue of shares worth ₹2,150 crore and an offer for sale (OFS) of 12.75 crore equity shares from its promoters and investors. The lot size is 37 shares, requiring a minimum investment of ₹14,134 for retail investors. The IPO will be listed on both the NSE and BSE. The allotment is expected to be finalized on November 6, 2025, and the tentative listing date is November 10, 2025.
Objective and Valuation
Lenskart plans to use the funds raised to expand its stores and enhance its technology. The IPO is targeting a valuation of over ₹69,700 crore at the upper limit. However, some analysts believe that the valuation is very high. The post-IPO market value is expected to be around ₹70,000 crore. Based on FY25 profits, the P/E ratio is around 235x, and the price-to-sales ratio is 10.5x.
Anchor Investors
Prior to the IPO opening, Lenskart allocated 8.13 crore equity shares to anchor investors at ₹402 apiece, raising a total of ₹3,268 crore.
Should You Apply?
Here's a summary of what experts suggest:
- Neutral View: Some analysts have a neutral rating, citing expensive valuations.
- Avoid: Some suggest avoiding the IPO due to high valuations, preferring to invest after listing at a reasonable valuation.
- Caution Advised: Investors should be aware of potential short-term price swings after listing.
Factors to Consider:
- Strengths: Lenskart has a strong brand, an omnichannel presence, and a scalable tech model. The company has demonstrated strong revenue growth and a turnaround from loss to profit.
- Risks: The IPO valuation is high compared to the market it currently serves. The valuation is considered steep compared to most retail companies.
Financial Performance
Lenskart's total revenue climbed sharply from ₹3,928 crore in FY23 to ₹7,009 crore in FY25, representing an annual growth rate of 33.6%. The company went from a loss of ₹10 crore in FY24 to a profit of ₹297 crore in FY25.
Expert Opinion
Veteran investor Shankar Sharma has criticized the Lenskart IPO valuation, calling it overvalued.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
