India’s largest eyewear retailer, Lenskart, has clearly caught the eye of investors. On the second day of its highly anticipated initial public offering (IPO), the ₹7,278 crore issue was oversubscribed more than 2 times (201%), underscoring the strong demand for one of India’s most recognizable consumer brands.
Credits: Mint
Retail Investors Lead the Charge
According to NSE data, the IPO received bids for over 20.09 crore shares against an offer size of 9.98 crore shares by November 3. The enthusiasm was led by retail investors, whose portion was subscribed a whopping 3.33 times (333%), indicating immense appetite among individual investors.
Institutional participation was also strong. Qualified Institutional Buyers (QIBs) subscribed their quota 1.6 times (164%), while Non-Institutional Investors (NIIs) booked their portion 1.9 times (188%). The robust response across all investor categories shows that Lenskart’s mix of brand recognition, tech-driven retail, and growth potential continues to attract market attention.
Inside the Lenskart IPO
Lenskart Solutions launched its IPO to raise ₹7,278 crore, comprising a fresh issue of ₹2,150 crore and an offer for sale (OFS) of 12.75 crore shares. The issue, which opened on October 31 and closes on November 2, comes with a price band of ₹382–₹402 per share, valuing the company at around ₹70,000 crore.
For investors, the minimum bid size is 37 shares, translating to a minimum investment of ₹14,874. The allotment results are expected on November 5, with the shares set to list on November 10 on both the NSE and BSE.
Grey Market Premium Shows Cooling Enthusiasm
In the grey market, Lenskart’s unlisted shares are commanding a premium of around 15–17% over the IPO price, according to Investorgain and IPO Watch. This is lower than the 23.6% GMP observed when the IPO first opened for subscription, suggesting that while sentiment remains positive, some investors are growing cautious about valuations.
Market experts believe this dip doesn’t necessarily indicate waning interest, but rather a natural recalibration as investors weigh long-term growth potential against near-term pricing.
Analysts Split on Valuation vs Growth Story
Lenskart’s IPO has drawn both excitement and scrutiny. Shravan Shetty, Managing Director at Primus Partners, said the issue has captured strong market attention due to its omnichannel model and international expansion. He noted that the sustained grey market premium shows investors are treating Lenskart more like a tech-enabled growth company than a traditional retailer.
However, Siddharth Maurya, Founder & MD of Vibhavangal Anukulakara, cautioned investors to assess the sustainability of Lenskart’s business model. “The eyewear segment offers strong long-term growth opportunities in India’s under-penetrated optical market, but sustained profitability and capital prudence will determine whether Lenskart can evolve from a high-growth startup into a stable listed company,” he said.
Meanwhile, Shivani Nyati, Head of Wealth at Swastika Investmart, maintained a ‘Neutral’ rating, pointing out that while fundamentals are solid, valuations are stretched.
The Valuation Debate
At the upper end of the price band, Lenskart’s valuation implies a price-to-earnings (P/E) ratio of around 230, a level that has raised eyebrows across the market. Even if the company triples its profits over the next few years, the P/E would still hover near 70, which analysts say remains expensive.
Responding to these concerns, Lenskart CEO Peyush Bansal defended the company’s growth trajectory in an interview with CNBC-TV18. He highlighted Lenskart’s 90% EBITDA CAGR and stressed that the company’s focus remains on creating value for both customers and shareholders. “Valuation is what the market decides,” he said, underscoring his belief in the long-term potential of the business.
Anchor Book Adds Star Power
Before opening to the public, Lenskart raised a massive ₹3,268.4 crore from 147 anchor investors — a list that reads like a who’s who of global finance. Major participants included the Government of Singapore, T Rowe Price, BlackRock, Goldman Sachs, Fidelity, Nomura, JP Morgan, and the Government Pension Fund Global, among others.
The anchor book success added credibility and momentum to the IPO, signaling strong institutional belief in Lenskart’s growth story.
Credits: Goodreturns
The Road Ahead
With its IPO already oversubscribed and interest from top-tier investors, Lenskart’s public debut is shaping up to be one of India’s most-watched listings of the year. Yet, the spotlight will remain on how the company manages to balance high growth with profitability and justify its premium valuation in the quarters to come.
As Lenskart prepares for its market debut on November 10, investors and analysts alike will be watching closely — not just to see how the stock lists, but whether it can truly deliver on the vision of making eyewear a lifestyle statement across the globe.
