Lenskart IPO closes today, GMP now down 50% from peak
What's the story
Lenskart's initial public offering (IPO), set to close today, is trading at a gray market premium (GMP) of ₹50 today. This suggests a potential listing gain of nearly 12% when the stock debuts on November 10. The GMP was around ₹95 when the issue opened for subscription on October 31, but has since eased sharply. Its peak was ₹108 on October 27. However, analysts warn that GMPs only reflect market sentiment and can change drastically before listing.
Subscription details
Lenskart IPO sees 2.01x subscription on Day 2
Lenskart's IPO has seen decent investor interest in the first two days of bidding, with a subscription rate of 2.01 times by the end of Day 2. Among different categories, the retail portion was subscribed 3.33 times, non-institutional investors (NIIs) at 1.88 times and qualified institutional buyers (QIBs) at 1.64 times.
Issue specifics
Price band and post-issue valuation
The eyewear retailer has fixed a price band of ₹382-₹402 per share for its IPO, with 10% of the issue reserved for retail investors. One lot consists of 37 shares, translating to a minimum investment of ₹14,874 at the upper end of the price band. At this upper limit, Lenskart could be valued at around ₹69,741 crore post-issue. The ₹7,278 crore IPO comprises a fresh issue worth ₹2,150 crore and an offer for sale (OFS) worth ₹5,128 crore.
Fund utilization
Use of proceeds and company overview
The proceeds from Lenskart's IPO will be used to expand retail operations, strengthen technology infrastructure, and boost marketing initiatives. Founded in 2010, Lenskart is one of India's largest omnichannel eyewear retailers with a strong digital platform and an expanding network of physical stores. The company has 2,137 stores in India and 669 abroad.
Financials
Financial performance and lead managers for the issue
In FY25, Lenskart posted a net profit of ₹297 crore, a huge turnaround from a ₹10 crore loss in FY24. The company's revenue grew 22% year-on-year to ₹6,625 crore on the back of strong domestic demand and growing international operations. Kotak Mahindra Capital Company, Morgan Stanley India Company, Avendus Capital, Citigroup Global Markets India, Axis Capital, and Intensive Fiscal Services are the book-running lead managers for the IPO.