Honasa went up, Lenskart could go anywhere: Deepak Shenoy says amid recent IPO buzz – News Air Insight

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The buzz around the recent Lenskart IPO has drawn sharp reactions and debates among investors and social media users. Adding perspective to the ongoing discussion, Deepak Shenoy, CEO, Capitalmind Asset Management, shared his views on the drama around an IPO and unpredictability of market behavior.

Shenoy posted on social media platform X that, “So much drama about an IPO. Last time it was about Honasa, if I recall correctly (IIRC). That stock went seriously up after the IPO… this time the new stock might go, well, anywhere.”

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He compared Lenskart’s IPO to Honasa Consumer’s (Mamaearth) IPO, which many people doubted at first but post the IPO the stock seriously went up. Shenoy pointed out that markets are not usually going to respond the way investors want and its even more unpredictable in the short term.

Shenoy further added, “In general, markets are not usually going to respond the way you think. It’s even more unpredictable in the short term.”

Recent buzz

Eyewear retailer Lenskart hit the public markets on Friday with one of the most anticipated IPOs of the year. But while the hype around India’s biggest optical retail brand continues to build, the valuation it’s asking for has raised eyebrows.At the upper end of the price band of Rs 402 per share, the IPO values Lenskart at a price-to-earnings (P/E) multiple of about 235-238 times its FY25 earnings — making it one of the most expensive consumer-tech listings in India.Lenskart Solutions has raised Rs 3,268.36 crore from 147 anchor investors ahead of its much-anticipated IPO, which opened for subscription on October 31 and will close on November 4.

Anchor investors

Of the total allocation, 2.87 crore shares (35.34%) were taken up by 21 domestic mutual funds across 59 schemes, reflecting wide participation from India’s top institutional investors.

Among the domestic anchors, participation came from leading fund houses such as SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Mutual Fund, Mirae Asset, DSP Mutual Fund, Franklin India, HSBC Mutual Fund, WhiteOak Capital, Edelweiss, Bandhan, and Canara Robeco.

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After facing criticism on social media and several investors discussing the valuations, DSP Mutual Fund has issued a clarification regarding its decision to invest in the Lenskart IPO.

On the valuation front of the Lenskart IPO, the fund house believes that businesses associated with retail, e-commerce are trading expensive, including this specific business.





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