Lenskart IPO fully subscribed within hours: Check pros and cons
What's the story
Lenskart's initial public offering (IPO) has been fully subscribed on its first day, thanks to strong demand from institutional and retail investors. As of 3:16pm today, the issue was subscribed 1.06 times overall on the BSE. The Qualified Institutional Buyers (QIB) segment led the early interest with a subscription rate of 1.42 times, followed by retail investors at 1.13 times.
Investor response
NII category remains subdued at 0.30 times
The employee portion of Lenskart's IPO saw a participation rate of 0.97 times. However, the Non-Institutional Investor (NII) category remained subdued at 0.30 times, a trend that often changes on the last day of bidding. The IPO opened today and will close on November 4. It has a price band of ₹382-₹402 per share and a lot size of 37 shares for retail investors. At the upper end of the price band, Lenskart will be valued at around ₹70,000 crore.
Market performance
GMP indicates possible listing gains of around 18%
The total issue size of Lenskart's IPO is ₹7,278 crore, including a fresh issue of around ₹2,150 crore and an offer for sale from existing shareholders. In the gray market, the company is commanding a premium of around ₹72. This indicates possible listing gains of roughly 18% at the upper end of the price band. However, GMP trends are sentiment-driven and can change rapidly with broader market conditions.
Business growth
Lenskart reported revenue of ₹6,652 crore in FY25
Lenskart has created India's largest organized eyewear retail network through a hybrid model of online scale and offline expansion. For FY25, the company reported a revenue of around ₹6,652 crore and a net profit of ₹297 crore, marking a turnaround from previous losses. A large portion of the fresh issue proceeds will be used for store expansion, supply chain upgrades, brand investments, and international expansion in West Asia/Southeast Asia.
Pros and cons
Mixed review for Lenskart's public issue
Analysts have given a mixed review of Lenskart's public issue, with some highlighting the company's strong brand and marquee investors. However, others have raised concerns over stretched valuations. Shravan Shetty, MD at Primus Partners, said the decent gray market premium (GMP) despite elevated valuations indicates that the market perceives Lenskart more as a tech company capable of rapid growth. Shivani Nyati from Swastika Investmart rated Lenskart as 'Neutral' due to stretched valuations despite solid fundamentals.