The initial public offering of Lenskart Solutions Ltd, an eyewear retailer, received a positive response on its first day of bidding on Friday, fueled by the interest of institutional buyers and retail investors. Lenskart IPO subscription status was 1.13 times on Day 1.
The public offering (IPO) for Lenskart Solutions will accept subscriptions from October 31 to November 4. Lenskart IPO price band has been set between ₹382 and ₹402 per share, targeting a valuation of over ₹69,700 crore at the upper limit. Lenskart IPO GMP today stands at ₹85.
The initial public offering from Lenskart consists of a fresh issuance of shares worth ₹2,150 crore, along with an offer for sale (OFS) of 12.75 crore equity shares from its promoters and investors.
In the OFS, promoters such as Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi, along with investors like SVF II Lightbulb (Cayman) Ltd, Schroders Capital Private Equity Asia Mauritius Ltd, PI Opportunities Fund-II, Macritchie Investments Pte Ltd, Kedaara Capital Fund II LLP, and Alpha Wave Ventures LP will be divesting their shares.
Lenskart intends to use the funds raised through the IPO for strategic purposes, including capital expenditures for setting up new company-operated, company-owned (CoCo) stores in India, as well as to cover the lease, rent, and licensing expenses related to these CoCo stores.
Founded in 2008, Lenskart started as an online eyewear platform in 2010 and opened its first physical store in New Delhi in 2013.
The company operates in major metropolitan areas, tier-1 and tier-2 markets, and also extends its services internationally in Southeast Asia and the Middle East.
Lenskart IPO GMP today
Lenskart IPO GMP today is ₹85. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Lenskart share price was indicated at ₹487 apiece, which is 21.14% higher than the IPO price of ₹402.
According to the grey market activities observed over the last seven sessions, today’s IPO GMP is showing an upward trend and is anticipated to have a strong listing. The lowest GMP recorded is ₹48.00, whereas the highest GMP has reached ₹108, as per expert opinions.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Lenskart IPO subscription status
Lenskart IPO subscription status was 1.13 times on day 1. The retail portion was subscribed 1.31 times, and NII portion has been booked 41%, Qualified Institutional Buyers (QIBs) portion received 1.42 times bids. Employee portion subscribed 1.10 times.
The company has received bids for 11,23,58,344 shares against 9,97,61,257 shares on offer, at 17:00 IST, according to data on BSE.
Lenskart IPO Review
As per SBICAP Securities, considering the strong business model, the company is positioned to take advantage of the rapidly growing domestic organized but underutilized eyeglasses sector. Additionally, as the business expands, there is potential for profitability enhancement in the medium to long term. The listed international competitors demonstrate a solid margin profile, and moving forward, the market will closely observe Lenskart’s journey towards profitability as well.
“As per the historical track record, the company has consistently improved its reported EBITDA margin#(7.0% in FY23 to 14.7% in FY25) and incremental improvement will be keenly tracked by the investors. We recommend investors to SUBSCRIBE to the IPO for long term at the cut-off price,” said the brokerage.
Brokerage SMIFS indicated that they suggest investors subscribe to the offering due to Lenskart’s return to profitability, the 65% market penetration potential within India’s 777 million population affected by vision issues, the technology-driven 10-month payback period for stores, and the sustainable competitive advantages that provide significant value creation in India’s rapidly growing eyewear retail market, presenting a high-risk yet high-reward opportunity for long-term investors.
Lenskart IPO details
Lenskart’s initial public offering includes a new share issuance valued at ₹2,150 crore, along with a sale of 12.75 crore equity shares by its promoters and investors.
As part of the sale, the promoters — Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi, alongside investors — SVF II Lightbulb (Cayman) Ltd, Schroders Capital Private Equity Asia Mauritius Ltd, PI Opportunities Fund-II, Macritchie Investments Pte Ltd, Kedaara Capital Fund II LLP, and Alpha Wave Ventures LP — will be divesting shares.
According to a circular from the BSE, the company has allocated 8.13 crore equity shares to anchor investors at a price of ₹402 each, yielding a total of ₹3,268 crore.
Lenskart intends to utilize the funds raised from the IPO for strategic initiatives such as capital expenditures related to establishing new company-operated, company-owned (CoCo) stores in India, as well as to cover expenses associated with lease, rent, and license agreements for these stores.
Additional aims outlined by the company include investments in technology and cloud infrastructure, brand marketing and promotional efforts to boost brand recognition, potential unidentified acquisitions, and general corporate purposes.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
