Lenskart, India’s leading eyewear brand, is set to open its highly anticipated initial public offering (IPO) on Friday, attracting strong investor interest in the consumer-tech sector. The stock commanded an impressive 27% premium in the gray market (GMP) over its upper price band, signaling expectations of a blockbuster subscription. Lenskart has set a price band of ₹382-402 per share, reflecting optimism about its growth potential and market position.
IPO Issue Size and Market Allocation:
The total IPO size is estimated to be around ₹7,278 crore, consisting of a fresh issue worth ₹2,150 crore and an offer for sale (OFS) of up to 12.75 crore shares by promoters and existing investors. The OFS is expected to yield about ₹5,128 crore at the upper price band. Lenskart plans to allocate 75% of the offer to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 10% to retail investors, ensuring broad participation from diverse investor categories.
Positioned as Fourth-Largest IPO of 2025:
Lenskart’s IPO ranks as India’s fourth-largest offering of 2025, following Tata Capital, HDB Financial Services, and LG Electronics. Backed by marquee investors such as SoftBank, Temasek, Kedaara Capital, and Alpha Wave Ventures, the company recently attracted ₹90 crore from billionaire Radhakishan Damani in a pre-IPO round. The gray market premium of ₹108 above the upper band price demonstrates strong market confidence.
Stock Market Experts Weigh In on Lenskart’s IPO Prospects:
Market analysts highlight that Lenskart’s IPO is coming at a time when Indian consumer-tech stocks are drawing significant investor attention, buoyed by optimism over economic recovery and digital retail growth. While the 27% gray market premium signals strong appetite, some experts caution that valuations are stretched given the company’s slim profit margins and recent accounting gains linked to acquisitions rather than organic growth. Investors are advised to watch Lenskart’s ability to scale profitability sustainably post-listing. The strong presence of marquee investors like SoftBank and Temasek adds confidence, but the true test will be Lenskart’s execution of its aggressive expansion and technology integration plans as it navigates a highly competitive eyewear market.
Regulatory Compliance and Risk Factors:
While enthusiasm for Lenskart’s IPO is high, investors should consider regulatory compliance and associated risks before subscribing. The company operates large-scale manufacturing units subject to strict environmental, health, and safety regulations, any violations of which could impact operations and reputation. Additionally, the Directorate of Enforcement (ED) has sought documents from Lenskart under the Foreign Exchange Management Act (FEMA) as part of ongoing scrutiny, highlighting possible regulatory uncertainties. The company also relies on suppliers, including Chinese joint ventures, raising supply chain and geopolitical concerns. Further, Lenskart’s recent acquisition of Owndays Inc. introduces integration risks and high goodwill accounting, which may affect future profitability. These factors highlight the need for cautious optimism among investors evaluating Lenskart’s growth prospects alongside potential challenges.
Strong Financial Performance and Growth Plans:
Founded in 2008, Lenskart has grown from an online eyewear platform to a retail powerhouse with over 2,500 stores across India, the Middle East, and Southeast Asia. The company posted a net profit of ₹297 crore in FY25, rebounding from a ₹10 crore loss in FY24. Revenue surged 22% year-on-year to ₹6,625 crore. Fresh IPO proceeds will finance store expansion, technology enhancements, and brand-building efforts aimed at solidifying Lenskart’s omnichannel presence domestically and internationally. The tentative share allotment is expected by November 6, with listing on November 10. Eligible employees receive a ₹19 per share discount on the issue price.
