The sharp fall in the GMP suggests that traders in the unofficial market are turning cautious ahead of listing. Analysts said sentiment has softened amid valuation fatigue and a pullback in secondary markets, even as the public issue drew an overwhelming response.
Strong demand despite valuation worries
Lenskart’s Rs 7,278 crore IPO, one of the largest consumer listings of the year, received bids worth over Rs 1 lakh crore, translating to a 28.3 times overall subscription. The institutional segment led the rally, with Qualified Institutional Buyers (QIBs) subscribing 45 times, underscoring strong confidence from both foreign and domestic funds.
Non-institutional investors subscribed 18 times, while the retail portion saw 7.5 times participation, impressive given the high ticket size and valuation concerns. Exchange data showed that investors bid for 281 crore shares against 9.97 crore shares on offer, reflecting robust demand despite a jittery broader market.
Analysts warn: listing gains may be muted
While analysts remain optimistic about Lenskart’s long-term prospects, many believe near-term listing gains could be limited.
“Valuation of Lenskart seems stretched and hence listing gain is likely to be muted. However, looking at the robust business model, the company is well placed to encash on the fast-growing domestic organized eyeglasses market,” SBI Securities said.
At the upper price band, Lenskart is valued at 10.1x FY25 EV/Sales and 68.7x EV/EBITDA—multiples that leave little room for short-term upside. Still, analysts note that profitability metrics have been improving, with EBITDA margins rising from 7% in FY23 to 14.7% in FY25. The Street will be closely watching whether this trajectory sustains post-listing.
A long-term bet on India’s eyewear revolution
Behind the valuation chatter lies the growth story that drew investors in. Lenskart has built one of India’s most recognizable consumer brands through its omnichannel model, technology-led design, and vertically integrated manufacturing.
The company operates over 2,700 stores globally, including 2,000 in India, and has expanded into Singapore, UAE, and the US. In FY25, revenue surged 32% CAGR over two years to Rs 6,653 crore, while EBITDA grew 3.7 times to Rs 971 crore. It also turned profitable in FY25 with a PAT of Rs 297 crore, a sharp turnaround from a loss of Rs 64 crore two years earlier.
Brokerage Nirmal Bang said Lenskart’s “resilient business model” benefits from its centralized manufacturing and expanding international footprint. “Lenskart enjoys strong competitiveness in the Indian eyewear market by leveraging innovation, technology, and an omnichannel strategy that keeps it cost-efficient in a fragmented industry,” the brokerage said.
Despite the subdued GMP, analysts said Lenskart remains a long-term play on India’s eyewear revolution. Its debut may not dazzle on Day One, but investors will be watching whether the company’s execution, and its ability to defend premium valuations, can keep the sparkle alive on Dalal Street.
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