Eyewear retailer Lenskart Solutions is heading into its listing next week with investor excitement tinged with caution. After a healthy IPO subscription, the company’s grey market premium (GMP), a key indicator of expected listing performance, has plunged nearly 70% from its peak of Rs 108 from a few days ago to around Rs 30, implying a modest 8% premium over the issue price of Rs 402.
The steep fall in the GMP signals that traders in the unofficial market have turned cautious ahead of listing. Analysts attribute the cooling enthusiasm to a mix of valuation fatigue and cautious sentiment in secondary markets.
Strong subscription despite valuation worries
The Rs 7,278 crore IPO, one of 2025’s largest consumer listings, received bids worth over Rs 1 lakh crore, drawing an overwhelming 28.3 times subscription overall. Institutional investors led the charge, with the QIB portion subscribed 45 times, indicating strong confidence from both foreign and domestic funds.
Non-institutional investors subscribed 18 times, while the retail category saw nearly 7.5 times participation, impressive despite the high ticket size and valuation concerns. According to exchange data, Lenskart received bids for 281 crore shares against the 9.97 crore shares on offer, underscoring the strength of demand even in a volatile secondary market.
Analysts say: Listing gains likely muted
While analysts are broadly bullish on Lenskart’s fundamentals, many have flagged that the IPO’s valuations are on the higher side. SBI Securities noted that at the upper price band, Lenskart is valued at 10.1x FY25 EV/Sales and 68.7x EV/EBITDA, based on post-issue capital, a premium that leaves limited room for short-term upside.
“Valuation of Lenskart seems stretched and hence listing gain is likely to be muted. However, looking at the robust business model, the company is well placed to encash on the fast-growing domestic organized eyeglasses market,” the brokerage said.
As the company scales up, there is ample room for profitability improvement. Lenskart’s EBITDA margin has steadily improved from 7% in FY23 to 14.7% in FY25, and analysts believe this trajectory will be closely watched by the Street post-listing.
A long-term play on India’s eyewear revolution
Lenskart’s story has resonated with investors for its strong retail network, omnichannel model, and early bet on technology-led design and manufacturing. The company operates over 2,700 stores globally, including 2,000 in India, and has built a presence in international markets like Singapore, UAE, and the US.
In FY25, its revenue surged 32% CAGR over two years to Rs 6,653 crore, while EBITDA rose 3.7 times to Rs 971 crore. The company turned profitable in FY25 with a PAT of Rs 297 crore, compared to a loss of Rs 64 crore two years earlier.
Nirmal Bang said its “resilient business model” is supported by centralized manufacturing and a growing global footprint. “Lenskart enjoys strong competitiveness in the Indian eyewear market by leveraging innovation, technology, and an omnichannel strategy that keeps it cost-efficient in a fragmented industry,” it said.
