Orkla India vs Studds Accessories vs Lenskart IPO: Where to put your money?

After a quiet week, the primary market has turned active again with three mainboard IPOs, including Orkla India, Studds Accessories, and Lenskart Solutions, opening for subscription this week. Collectively, the three companies aim to raise over ₹9,400 crore through their public issues.

 

According to the offer documents, Orkla India plans to raise ₹1,667.5 crore, Studds Accessories ₹455.5 crore, and Lenskart Solutions aims ₹7,278 crore.

 

The Orkla India IPO, which opened on Wednesday, October 29, entered its second day of bidding today. It was 78 per cent subscribed on Day 1 of the offer, receiving bids for 12.55 million equity shares against 15.99 million on offer. The issue will close on Friday, October 31.

 

 

Studds Accessories IPO opened on October 30 and will close for subscription on Monday, November 3, while Lenskart Solutions is set to launch its ₹7,278 crore IPO on Friday, October 31.

Orkla India vs Studds Accessories vs Lenskart IPO: Where to invest?

GMP shows strong interest in Lenskart IPO

Lenskart IPO has seen the strongest grey market premium (GMP) with the unlisted shares trading at ₹450, commanding a premium of ₹48 or 12 per cent against the upper end of the price band of ₹382 to ₹402 as of Thursday. Studds Accessories and Orkla India are also trading with moderate premiums of ₹53 or 9 per cent and ₹68 or 9.3 per cent, respectively, reflecting steady investor interest across the board.

 

However, grey market trends are unofficial and unregulated; they often provide early cues on potential listing-day performance.

Street View on the IPOs

Analysts hold a largely positive view on all three issues, citing solid fundamentals, strong sector tailwinds, and long-term growth potential. While valuations differ, most analysts recommend subscribing for the long term, with limited scope for immediate listing gains.

 

According to brokerages, Orkla India, which owns popular brands MTR Foods and Eastern, is a stable FMCG play with consistent performance. In the fiscal year 2024-25 (FY25), the company reported a net profit of ₹255.7 crore and revenue of ₹2,455.2 crore, reflecting steady year-on-year growth.

 

At the upper price band of ₹730, Angel One values the stock at a P/E of 31.7x, calling it fairly priced given its strong brand equity, diversified portfolio, and resilient margins. The brokerage has assigned a ‘Subscribe’ rating.

 

Additionally, Master Capital Services highlighted the robust outlook for India’s spices and convenience food markets, expected to grow at 11.5 per cent and 16 per cent compounded annual growth rate (CAGR), respectively, through FY29. The brokerage said Orkla is strategically positioned to capture this growth and recommended the IPO as a long-term investment opportunity.

 

Brokerages are upbeat on Studds Accessories IPO as well. India’s largest helmet maker is backed by strong demand fundamentals and a debt-free balance sheet. Arihant Capital noted the global motorcycle helmet market is set to grow at 5.1 per cent CAGR through CY29, driven by rising safety awareness and premiumisation.

 

According to Arihant Capital, at the upper price band of ₹585, Studds is valued at 33x earnings, which is justified by its leadership, export presence in over 70 countries, and new capacity expansion. The brokerage assigned a ‘Subscribe for Long Term’ rating.

 

Anand Rathi echoed similar optimism, citing Studds’ advanced manufacturing, integrated operations, and growing international footprint. It values the issue at a P/E of 28.5x on FY26 earnings and also recommends a ‘Subscribe – Long Term’ rating.

 

While the analysts remain positive on Lenskart, they caution that valuations appear steep. According to SBI Securities, the eyewear retailer has delivered strong growth, supported by market leadership and expanding international presence.

 

"At the upper band of ₹402, the IPO is valued at FY25 EV/Sales and EV/Ebitda multiples of 10.1x and 68.7x, respectively, based on post-issue capital. Valuation of Lenskart seems to be stretched and hence listing gain is likely to be muted," the brokerage said. It issued a ‘Subscribe for Long Term’ rating, noting improving profitability with Ebitda margins rising from 7 per cent in FY23 to 14.7 per cent in FY25.

 

Similarly, Arihant Capital also recommends a ‘Subscribe for Long Term’, pointing to a 32.5 per cent CAGR in revenue between FY23 and FY25 and a turnaround to profitability with PAT of ₹297 crore in FY25.