Lenskart IPO opens strongly with full subscription amid QIB demand

The IPO of Lenskart Solutions Ltd was fully subscribed on Day 1, with overall subscription at 1.06 times as of 3:16 pm on the BSE.

• The Qualified Institutional Buyers (QIB) segment recorded a subscription of 1.42 times.

• Retail investors subscribed at 1.13 times.

• The employee portion saw participation at 0.97 times.

• The Non-Institutional Investor (NII) category remained subdued at 0.30 times, a pattern that often changes on the final day of bidding.

Lenskart IPO Issue details and pricing structure

Lenskart IPO Price band and issue size

The company has set a price band of ₹382 to ₹402 per share, with a lot size of 37 shares for retail bidders. The total issue size is ₹7,278 crore, which includes a fresh issue of around ₹2,150 crore, with the remainder being an offer for sale from existing shareholders.

Grey market premium and listing outlook

In the grey market, Lenskart is reportedly commanding a premium of around ₹72, signalling possible listing gains of roughly 18% at the upper end of the price band. However, grey market premium (GMP) trends are sentiment-driven and may shift with broader market conditions.

Business background and growth trajectory

Lenskart has built India’s largest organised eyewear retail network, combining online scale with a rapidly expanding offline presence. For FY25, the company reported revenue of about ₹6,652 crore and net profit of ₹297 crore, marking a turnaround after earlier losses.

A significant share of proceeds from the fresh issue will go toward store expansion, supply-chain upgrades, brand investments, and the company’s overseas push, particularly in West Asia and Southeast Asia.

Valuation concerns and analyst commentary

Valuation metrics

Brokerage commentary highlights that Lenskart’s IPO, priced at about 230 × FY25 P/E, trades significantly above global eyewear major EssilorLuxottica. Nearly 70% of the issue is secondary, with early investors reportedly exiting at 8 × their entry valuation in under a year. With recurring profits at ₹128 crore and growth slowing to 18%, fundamentals appear stretched. A wait-and-watch approach seems prudent for long-term investors.

Profitability and sustainability

The recent profitability includes one-off accounting gains, meaning earnings stability will need to be demonstrated in the coming quarters. Yet, the long-term category opportunity remains significant, as a large portion of the population either does not wear glasses or relies on unorganised markets.

What lies ahead

Final subscription momentum through continued institutional bidding will shape the pricing expectations ahead of listing. As the IPO concludes on November 4, investor sentiment, market conditions and grey-market indicators will all contribute to how Lenskart’s listing plays out.

Conclusion

The strong Day 1 subscription for Lenskart’s IPO underscores robust investor interest, particularly from institutional players. Yet, as the company shifts from growth to profitability and pursues an ambitious expansion strategy, investors will need to monitor how well Lenskart executes its plans and sustains earnings. With a high valuation and significant secondary offering, disciplined market participants may opt for caution, while others may view the listed opportunity as a play on India’s organised eyewear-market disruption.