Lenskart IPO draws over ₹1.1 trillion bids despite valuation concerns

Issue subscribed nearly 30x on last day of bidding

The initial public offering (IPO) of Lenskart Solutions, the country’s largest eyewear retailer, drew an overwhelming response, being subscribed nearly 30 times and garnering bids worth over ₹1.13 trillion.

 

The qualified institutional buyer (QIB) category was subscribed more than 40 times (x), the high net-worth individual (HNI) portion over 18 times, and the retail segment over seven times, with applications of nearly 3.2 million.

 

The sharp demand came despite concerns around the issue’s steep valuations.

 

The ₹7,278 crore offering – fifth largest this year — was priced in the range of ₹382-402 per share.

 

The IPO comprised a fresh issue of shares worth ₹2,150 crore, which the company will use to fund business expansion, technology infrastructure, and marketing initiatives.

 

At the top end of the price band, Lenskart commands a valuation of ₹69,727 crore ($7.9 billion) — more than 200 times its FY25 profits and 10 times its annual sales.

 

Experts said while Lenskart’s valuation concerns were valid, investors were betting on the company’s market position and brand strength as key long-term positives.

 

“If we consider FY26 earnings, assuming 22 per cent revenue growth and 5 per cent net profit margin, the forward price-to-earnings (P/E) translates to 163x-171x. While premium, it reflects Lenskart’s leadership in a fragmented segment,” wrote Insight Provider Tina Banerjee on Smartkarma.

 

SBI Securities noted that while the issue appeared “stretched”, the company was well placed to capitalise on the fast-growing organised underpenetrated eyeglasses market.

 

The brokerage had recommended a long-term subscription at the cut-off price, pointing to scope for margin improvement. Lenskart’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin has improved from 7 per cent in FY23 to 14.7 per cent in FY25.

 

Lenskart operates on an omnichannel model combining its digital platform with 2,806 stores globally, of which 2,137 are in India.

 

After years of losses, the company posted a net profit of ₹295.6 crore in FY25, compared to a loss of ₹18 crore in the previous financial year. Ebitda improved to ₹976 crore, amid operational efficiencies and sales growth.

 

At the upper band, valuations imply FY25 EV/Sales and EV/Ebitda multiples of 10.1x and 68.7x, respectively.

 

India’s eyewear market remains highly fragmented, with less than a quarter controlled by organised players. However, integrated retailers such as Lenskart and Titan Eye+ are steadily gaining share through better supply chains, pricing, and retail experience.

 

“The organised channel is projected to grow about 1.6 times faster than the unorganised market and account for 31 per cent by FY30,” Banerjee added.

 

Lenskart’s anchor investor category was subscribed 15 times their portion, bolstering sentiment ahead of the issue. The grey market premium also remained over 20 per cent through the offer period. 

 

Groww IPO covered more than half on Day 1

On the opening day of Billionbrains Garage Ventures Ltd owned Groww’s ₹6,632 crore initial public offering (IPO) was more than half covered. A day before, the firm had allotted shares worth ₹2,985 crore to anchor investors, which included the Government of Singapore, Abu Dhabi Investment Authority, among others. Groww has set a price band of ₹95-100 per share. At the top end, the company will be valued at  ₹61,736 crore ($7 billion). The IPO comprises of fresh issue of shares worth ₹1,060 crore and an offer for sale of ₹5,572 crore.

SAEL Industries files IPO papers to raise ₹4,575 cr 

SAEL Industries Ltd on Tuesday filed preliminary papers with markets regulator Sebi to raise ₹4,575 crore through an initial public offering (IPO). The IPO comprises a fresh issue of shares worth ₹3,750 crore and an offer for sale of shares valued at ₹825 crore according to the draft red herring prospectus. The firm may consider a pre-IPO placement of shares worth ₹750 crore. From the proceeds, it plans to invest in its subsidiaries for the repayment of certain borrowings, while the remaining funds will be used for general corporate purposes.