Lenskart shares to debut on Dalal Road day after currently. What would possibly perhaps fair nonetheless investors inquire of?
Eyewear retailer Lenskart Alternate strategies will create its unparalleled-awaited inventory market debut on Monday, but investor euphoria has cooled sharply. After one of 2025’s most sought-after user IPOs, the firm’s gray market top fee (GMP), a key gauge of checklist expectations, has plunged nearly 94% from Rs 108 to spherical Rs 6.5 per portion, indicating a modest 1.6% top fee over the self-discipline label of Rs 402.
The racy tumble in the GMP means that merchants in the unofficial market are turning cautious sooner than checklist. Analysts acknowledged sentiment has softened amid valuation fatigue and a pullback in secondary markets, even as the public self-discipline drew an overwhelming response.
Come by seek knowledge from despite valuation worries
Lenskart’s Rs 7,278 crore IPO, one of many absolute top user listings of the 365 days, received bids price over Rs 1 lakh crore, translating to a 28.3 times total subscription. The institutional section led the rally, with Licensed Institutional Customers (QIBs) subscribing 45 times, underscoring solid confidence from every foreign and home funds.
Non-institutional investors subscribed 18 times, whereas the retail half noticed 7.5 times participation, spectacular given the high label dimension and valuation considerations. Change knowledge showed that investors expose for 281 crore shares towards 9.97 crore shares on offer, reflecting tough seek knowledge from despite a jittery broader market.
Analysts warn: checklist gains would possibly perhaps fair be muted
Whereas analysts remain optimistic about Lenskart’s lengthy-time duration possibilities, many mediate shut to-time duration checklist gains will seemingly be miniature.
“Valuation of Lenskart looks stretched and hence checklist originate is at grief of be muted. However, taking a examine the tough replace mannequin, the firm is effectively placed to encash on the mercurial-rising home organized eyeglasses market,” SBI Securities acknowledged.
On the upper label band, Lenskart is valued at 10.1x FY25 EV/Gross sales and 68.7x EV/EBITDA—multiples that leave minute room for momentary upside. Peaceable, analysts show that profitability metrics were bettering, with EBITDA margins rising from 7% in FY23 to 14.7% in FY25. The Road will seemingly be carefully staring at whether this trajectory sustains put up-checklist.
A lengthy-time duration bet on India’s eyewear revolution
Within the abet of the valuation chatter lies the enlargement fable that drew investors in. Lenskart has built one of India’s most recognizable user manufacturers through its omnichannel mannequin, technology-led arrangement, and vertically integrated manufacturing.
The firm operates over 2,700 shops globally, including 2,000 in India, and has expanded into Singapore, UAE, and the US. In FY25, earnings surged 32% CAGR over two years to Rs 6,653 crore, whereas EBITDA grew 3.7 times to Rs 971 crore. It also became a hit in FY25 with a PAT of Rs 297 crore, a racy turnaround from a lack of Rs 64 crore two years earlier.
Brokerage Nirmal Bang acknowledged Lenskart’s “resilient replace mannequin” advantages from its centralized manufacturing and expanding world footprint. “Lenskart enjoys solid competitiveness in the Indian eyewear market by leveraging innovation, technology, and an omnichannel technique that retains it label-environment friendly in a fragmented replace,” the brokerage acknowledged.
Despite the subdued GMP, analysts acknowledged Lenskart remains a lengthy-time duration play on India’s eyewear revolution. Its debut would possibly perhaps fair no longer dazzle on Day One, but investors will seemingly be staring at whether the firm’s execution, and its potential to defend top fee valuations, can preserve the glint alive on Dalal Road.
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(Disclaimer: Solutions, solutions, views and opinions given by the experts are their absorb. These make no longer signify the views of the Economic Times)
