Lenkart IPO: Brokerages upbeat; GMP stays firm; should you park your money?

Lenkart IPO Open: Adding to the positive sentiment, early trends in the grey market indicate a favorable start for the public offering

Lenskart IPO: Brokerages remain upbeat on the initial public offering (IPO) of technology-driven eyewear solutions provider Lenskart Solutions, citing the company’s strong positioning to capitalise on India’s growing eyewear market.

 

The technology-driven eyewear provider plans to raise ₹7,278.02 crore through a combination of a fresh issue of 53.5 million equity shares and an offer for sale of up to 127.6 million shares by promoters and existing investors. The IPO price band is set at ₹382–₹402 per share. The public offering opens tomorrow, October 25, will remain open until November 4, and is tentatively scheduled to list on Monday, November 10.

 

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Adding to the positive sentiment, early trends in the grey market indicate a favorable start for the public offering. Sources tracking grey market trends revealed that unlisted shares of Lenskart were exchanging hands at around ₹465 per share, reflecting a premium of ₹63 per share, or 15.67 per cent, over the upper end of the IPO price of ₹402 per share.

Should you subscribe to the Lenskart IPO? Here’s what brokerages recommend:

Reliance Securities – Subscribe

Analysts at Reliance Securities have recommended subscribing to the IPO, noting that Lenskart is at a structural inflection point, transitioning from a fast-growing D2C disruptor to a profitable, scaled omni-channel eyewear platform.

 

"With a large under-penetrated eyewear market, increasing formalisation, and global scalability through Owndays, Lenskart is well-positioned for multi-year growth. The brand’s integrated supply chain, proprietary design capabilities, and deep technology stack create durable moats that few competitors can replicate at scale. Owing to such developments, we recommend subscribing," the brokerage said in a research note.

Choice Institutional Equities – Subscribe for long term

Choice Institutional Equities advised a long-term subscription, citing strong growth potential tempered by high valuation and profitability risks. The brokerage highlighted that the IPO is better suited for investors with a higher risk appetite and a long-term horizon.

 

At the upper price band, Lenskart commands an EV/Sales of 9.9× on a trailing twelve months (TTM) basis—a valuation analysts describe as “significantly high.” They added, "While the company has posted steady topline growth, profitability remains weak, with positive PAT mainly driven by other income and lower expenses. Lenskart holds a 4–6 per cent share in the prescription eyewear segment, dominated by unorganised players." 

SBI Securities – Subscribe for long term

SBI Securities also recommended subscribing to the IPO at the cut-off price for the long term. The brokerage noted Lenskart’s robust growth in both financial and operational metrics and its widening footprint in the fast-expanding Indian eyewear market.

 

At ₹402, the IPO is valued at FY25 EV/Sales and EV/Ebitda multiples of 10.1× and 68.7×, respectively, on a post-issue basis. "Valuation appears stretched, and listing gains may be muted. However, the company’s robust business model positions it well to leverage the fast-growing organised eyewear market," SBI Securities noted.

 

The brokerage also highlighted Lenskart’s improving margins, adding, "The company has consistently enhanced its reported Ebitda margin, from 7 per cent in FY23 to 14.7 per cent in FY25, with incremental improvements likely to draw investor attention." 

SMIFS – Subscribe

SMIFS echoed the bullish stance, citing Lenskart’s profitability recovery, a 65 per cent penetration headroom in India’s 777-million-strong affected population, a technology-led 10-month store payback, and sustainable competitive advantages.

 

"Lenskart Solutions is exceptionally well-positioned to capitalise on sustained demand from the Indian eyewear industry, thanks to its vertically integrated manufacturing ecosystem, producing 30–40 million lenses and 25 million frames annually at Bhiwadi, eliminating 2.5–4× middlemen markups, and enabling 70 per cent gross margins," SMIFS noted. The brokerage described the IPO as a high-risk, high-potential opportunity for long-term investors.