Weak Debut for Lenskart IPO: Down 3% on Listing, Experts Turn Cautious

New Delhi: On Monday, Lenskart Solutions made its entry on Dalal Street, but on a subdued note. This eyewear giant became available for trading on both NSE and BSE. listing at Rs 390 on BSE against the IPO price of Rs 402, a decline of 3%. Opened at 395 on NSE but down 2.8% at 390 by 10:07 AM. The gray market premium is also capped at 2%—excitement seems to be cooling down.

Why was Lenskart's Rs 7,278 crore IPO so hyped?

This was the most watched IPO of the year—subscribed 28 times, 281.88 crore bids against 9.97 crore shares. QIBs jumped 40.35 times, NIIs 18.23 times, and retail was also strong. Fresh issue is Rs 2,150 crore; OFS: Rs 5,128 crore—lot size is 37 shares. Price Band 382-402. Post-IPO, shares went from Rs 168 crore to Rs 173 crore. But pre-listing sentiment is cool—GMP at 2%.

What is the analysts' view?

Subscription despair, questions on valuation. Ambit Capital gives a 'Sell' rating, targeting Rs 337—16% downside. Said, “20% CAGR growth is possible, but it is capex heavy, free cash flow is thin, and RoCE is just 9%—value is not justified.” "Valuations stretched, listing gains muted. But the business model is robust, with growth potential in the organized eyewear market," warns SBI Securities. Nirmal Bang praised—"Resilient from centralized manufacturing, international expansion. Cost efficient from innovation, tech, and omnichannel."

What does Lenskart's growth story say—2,700 stores, profit turnaround?

The company has 10.1x FY25 EV/Sales and 68.7x EV/EBITDA valuation. But trends are positive—EBITDA margin to 14.7% in FY25 from 7% in FY23. Revenue is up 32% CAGR to Rs 6,653 crore in FY25, EBITDA is 3.7x to Rs 971 crore, and profit is Rs 297 crore (loss of Rs 64 crore in FY23). 2,700 global stores (2,000 in India), spread across Singapore, the UAE, and the US. Future? Dominance in the eyewear market, but wary of competition (Titan, Warby Parker).

Ray-Ban Meta Glasses Launched in India—Lenskart's Next Big Move?

Ray-Ban Meta Smart Glasses India with IPO-AR features and AI integration entered the market. Lenskart's partnership game is strong—it shows plans beyond the listing. But hold or buy in the short term? Long-term bet, but watch valuations, say analysts.