### Lenskart IPO Overview
Lenskart, India's leading eyewear retailer, opened its ₹7,278 crore IPO on November 4, 2025, and closed it on November 6, 2025. The issue was priced at ₹352-₹402 per share and saw robust subscription, with bids totaling over ₹1 lakh crore, leading to 28.3 times overall oversubscription. The qualified institutional buyers (QIB) portion was subscribed 45 times, non-institutional investors 18 times, and retail investors 7.5 times. Shares are set to list on BSE and NSE on Monday, November 10, 2025, with allotment finalized on November 7.
The company reported strong financials for FY25: revenue grew at a 32% CAGR over two years to ₹6,653 crore, EBITDA surged 3.7 times to ₹971 crore (margin expanding from 7% in FY23 to 14.7%), and it achieved profitability with a PAT of ₹297 crore, reversing a ₹64 crore loss from two years prior. Lenskart's vertically integrated model, including in-house manufacturing of 30-40 million lenses and 25 million frames annually, supports 70% gross margins by cutting out middlemen, positioning it well in a fragmented market projected to reach ₹1,483 billion by FY30 at 13% CAGR.
### GMP Plunge Details
The grey market premium (GMP)—an unofficial indicator of listing-day premium—has plummeted sharply ahead of listing. It peaked at ₹108 (about 27% premium over the upper price band) shortly after the IPO opened but has since crashed:
- As of November 7 morning: Down to ₹8 (a mere 2% premium), a 93% drop from peak.
- Yesterday (November 6): Around ₹30 (8% premium), already a 72% decline from peak.
This plunge reflects cooling investor enthusiasm in the unlisted market, where shares trade informally.
### Reasons for the GMP Drop
- **High Valuations**: The IPO values Lenskart at stretched multiples—10.1x FY25 EV/Sales, 68.7x EV/EBITDA, and 230x P/E—leaving limited room for immediate upside.
- **Market Sentiment**: Broader weakness in secondary markets, "valuation fatigue" after recent high-profile listings, and cautious retail participation amid volatility.
- **Short-Term Hype Fade**: Heavy oversubscription (6.86-28x) signals excitement but not deep conviction in fundamentals, per experts.
A low GMP doesn't guarantee losses but tempers expectations for a blockbuster debut; it could still list flat or with modest gains if demand holds.
### What Analysts Are Saying
Analysts remain cautiously optimistic for the long term, citing Lenskart's market leadership, tech-driven omnichannel strategy (1,300+ stores, strong e-commerce), and innovation edge in a growing organized eyewear sector. However, they flag near-term risks from valuations and sentiment. Here's a breakdown:
| Analyst/Firm | Key Views on Listing Gains | Valuation & Risks | Long-Term Recommendation |
|--------------------|----------------------------|-------------------|--------------------------|
| **SBI Securities** | Muted gains expected due to stretched multiples; modest premium unlikely to exceed 10%. | 10.1x EV/Sales and 68.7x EV/EBITDA seen as premium pricing; weak secondary mood adds pressure. | Subscribe for long-term; robust model with profitability runway in India's eyewear boom. |
| **Nirmal Bang** | Limited upside at debut; GMP crash signals caution, but subscription strength offers floor. | High valuation reflects growth but caps short-term pops. | Positive on resilient ops—centralized manufacturing, tech, and omnichannel for 13% market CAGR. |
| **Gaurav Garg (Lemonn Markets Desk)** | Oversubscription is "short-term excitement" not fundamentals; low GMP hints at flat/negative open. | Heavy bids often precede fades; watch for post-listing volatility. | Monitor for conviction; not a quick flip. |
| **SIMFS** | Potential for subdued listing; 90% GMP drop underscores high-risk entry. | "High-risk, high-potential" due to aggressive pricing amid market softness. | Subscribe; growth runway via vertical integration and 70% margins positions it as a sector winner. |
Overall, consensus: Avoid chasing listing pops—aim for long-term holding if allotted, as Lenskart's fundamentals (e.g., EBITDA margin doubling) outweigh near-term jitters. Investors should track final allotment and market close on November 7 for clearer signals.
Lenskart IPO: Ahead of its listing on the stock exhchanges, Lenskart’s grey market premium (GMP) has crashed by a huge 70%, making investors wonder whether the stock will list at any substantial gains.
The Rs 7,278 crore public offering, amongst 2025's major consumer sector listings, attracted bids exceeding Rs 1 lakh crore, achieving 28.3 times oversubscription. Qualified institutional buyers showed particular interest, with their segment oversubscribed 45 times, demonstrating robust support from domestic and international funds.
The non-institutional segment achieved 18 times subscription, whilst retail investors participated at 7.5 times, notable given the substantial investment requirement and valuation considerations. Exchange data reveals bids for 281 crore shares against 9.97 crore available shares, highlighting sustained demand despite market fluctuations.
Lenskart IPO: GMP crashes ahead of listing
Following strong IPO participation, the company's grey market premium has dropped from Rs 108 to approximately Rs 30. This suggests a modest 8% premium above the Rs 402 issue price, according to an ET report.
The substantial decrease in GMP indicates heightened caution amongst unofficial market traders prior to the listing. Market observers suggest this reduced enthusiasm stems from concerns over valuations and subdued secondary market conditions.
