Eyewear retailer Lenskart Solutions has set the Street abuzz with a blockbuster response for its IPO, attracting bids worth over Rs 1 lakh crore despite concerns that its valuation might be too steep. The company’s Rs 7,278 crore issue received an overwhelming response from all investor categories.
According to data from the stock exchanges, the IPO was subscribed 28.2 times at close, drawing bids for more than 281 crore shares against the 9.97 crore shares on offer. The frenzy of demand pushed total applications close to Rs 1.1 lakh crore at the upper end of the price band of Rs 382–402 per share.
Strong institutional appetite drives the show
The biggest push came from qualified institutional buyers (QIBs), who bid aggressively for shares, subscribing their portion 40 times. This indicates strong confidence from foreign and domestic funds, even as many analysts have warned that the IPO’s high valuation leaves limited room for post-listing gains.
Institutional demand was expected to be strong after the robust anchor book, which had seen large mutual funds and global investors participate just before the issue opened. The anchor investors had already absorbed a large chunk of the shares offered, reinforcing sentiment in the primary market.
Analysts were mostly positive on the IPO for long-term on Lenskart’s potential to dominate India’s organized eyewear market, which remains largely unpenetrated and fragmented. The company has also been expanding rapidly overseas in markets like the Middle East and Southeast Asia, which may have boosted investor confidence in its growth story.
HNI and retail investors join the party
High net-worth individuals (HNIs) also joined the rush, subscribing their portion 18.07 times. The non-institutional investor segment saw steady participation across both small and large individual bidders, with strong interest in the last two days of the issue.While retail investor participation was the lowest among the three categories, it was still impressive — subscribed just over 7 times, indicating strong enthusiasm from everyday investors despite the high entry price. Retail investors bid for several crore shares, underscoring the popularity of the brand and the optimism around new-age consumer businesses.
Lenskart’s IPO has also stirred a heated debate about valuation among market watchers. At the upper end of the price band, the company is valued at nearly Rs 70,000 crore, translating to a price-to-earnings multiple of over 230x based on FY25 earnings — one of the highest among consumer-tech listings in India.
The company reported a Rs 297 crore profit in FY25 on revenues of Rs 6,652 crore, but a large portion of this was attributed to a one-time accounting gain linked to its acquisition of Japanese eyewear brand Owndays. Adjusted for that, normalized profit stands closer to Rs 130 crore, implying much thinner margins.
Still, analysts say the market’s response shows that investors are focusing on Lenskart’s scale, brand strength, and digital-first retail model rather than short-term earnings metrics. The company’s strong distribution network — spanning more than 2,500 stores globally and a leading online presence — has made it a dominant player in India’s eyewear industry.>
