Lenskart's initial public offering (IPO) has opened on October 31, 2025, aiming to raise ₹7,278 crore. The IPO includes a fresh issue of ₹2,150 crore and an offer for sale (OFS) of ₹5,128 crore by existing shareholders like SoftBank, Kedaara Capital, and Temasek. The price band is set at ₹382 to ₹402 per share.
Valuation Debate
Lenskart's IPO valuation, reaching approximately ₹70,000 crore at the upper end of the price band, has stirred debate among analysts and investors. This valuation implies a high P/E ratio, around 230x, leading to discussions about whether the pricing leaves sufficient upside for new investors. Critics point to the steep price jump and high valuation multiples compared to listed retailers. Some analysts estimate Lenskart is asking investors to pay nearly 535 times its normalized earnings.
Veteran investor Shankar Sharma has defended Lenskart, arguing its valuation is a "steal" compared to other tech listings with higher revenue multiples during their IPOs. He questioned why Lenskart faces criticism despite a more conservative valuation.
Grey Market Premium (GMP)
The grey market premium (GMP) provides an unofficial indication of the expected listing price. On October 31, 2025, the Lenskart IPO GMP stood at ₹70 per share. This suggests the stock could list around ₹472, reflecting a potential listing premium of 17.41%. However, GMPs are dynamic and can fluctuate.
Subscription Details
The IPO is open for subscription from October 31 to November 4, 2025. Investors can bid in lots of 37 shares, requiring a minimum investment of ₹14,874 at the upper end of the price band for retail investors. Allotment is expected to be finalized on November 6, with a tentative listing date of November 10 on the BSE and NSE.
Financial Performance and Market Opportunity
Lenskart has demonstrated revenue growth, increasing from ₹3,788 crore in FY23 to ₹6,652 crore in FY25. Profit after tax (PAT) surged to ₹295.6 crore in FY25. India's eyewear market is largely unorganized, with significant growth potential. Analysts project the market to grow by 13% annually, reaching nearly ₹1.48 lakh crore by FY30.
Expert Recommendations
SBI Securities has given a "Subscribe for long term" rating, citing Lenskart's robust business model and leadership in an underpenetrated market. Swastika Investmart has assigned a "Neutral" rating, acknowledging solid business fundamentals but noting valuation concerns.
Key Considerations
- Valuation: Lenskart's high valuation is a primary concern, with a P/E ratio exceeding 200x.
- GMP Fluctuations: The grey market premium is subject to volatility and should not be the sole basis for investment decisions.
- Long-Term Growth: Lenskart's long-term prospects depend on its ability to maintain growth, expand its market share, and improve profitability.
How to Apply
Investors can apply for the Lenskart IPO online through UPI or ASBA payment options. The ASBA facility is available through your bank's net banking portal, while the UPI option can be used through brokers that do not provide banking services.
