LENSKART

Are you considering investing in the Lenskart IPO? With headlines buzzing about massive valuations and growing investor interest, it’s natural to feel a mix of excitement—and maybe a little confusion. Let’s break down what’s happening, what you should know, and help you decide if this IPO deserves a place in your portfolio.

What’s Happening with Lenskart’s IPO?

Lenskart, the eyewear giant, just opened its initial public offering (IPO) for public bidding. The company aims to raise a whopping Rs 7,278 crore through a mix of fresh shares and an offer for sale. The IPO window is open from October 31 to November 2, so there’s still time for investors to jump in.

• Issue size: Rs 7,278 crore
• Price band: Rs 382 – 402 per share
• Estimated valuation: Around Rs 70,000 crore
• Minimum investment: 37 shares (about Rs 14,874)

On Day 1, the IPO was subscribed just 4%, but retail investors showed higher interest, booking 17% of their reserved portion already. It’s still early days, so numbers could ramp up quickly.

Grey Market Premium: What Does GMP Tell You?

You may have heard talk of the grey market premium (GMP). This is the price at which Lenskart’s shares are trading unofficially, ahead of the official listing. It’s a quick pulse check of market sentiment.

• Latest GMP: 18.41% premium over the IPO price, according to Investorgain
• GMP is rising slightly—from 11.94% a day before, and 17.41% just yesterday
• Other sources show a more conservative 11.45% premium

What does that mean for you? If the GMP sustains, it signals optimism and possible listing gains. But GMP can be volatile, and isn’t a guarantee of future performance.

Why Is There So Much Buzz? Lenskart’s Strengths

Lenskart isn’t your average eyewear shop; it’s a fast-growing, tech-driven retailer with omni-channel reach and aggressive international expansion. Here’s what makes it stand out:

• Strong brand recognition and loyal customer base
• Backed by marquee investors like the Government of Singapore, BlackRock, Goldman Sachs, and JP Morgan
• Solid business fundamentals—a 90% EBITDA CAGR is nothing to sneeze at!
• India’s eyewear market is underpenetrated, signaling long-term growth potential

Think of Lenskart as a tech company that sells eyewear. It’s using technology to reshape the way we buy glasses—making it as easy and convenient as shopping for clothes online.

The Big Question: Should You Apply?

Here’s where things get interesting. Lenskart is a high-growth company, but its valuation has raised eyebrows. At the upper end, the implied P/E ratio is around 230. Even if profits triple in the next few years, you’d still be looking at a P/E of 70—a number many experts would call “expensive.”

So, why the high price? CEO Peyush Bansal puts it simply: “Our job is to create value for the customer—and increasingly, for the shareholder as well. Valuation is decided by the market.” It’s a reminder that when it comes to IPOs, hype and future potential can sometimes outweigh short-term earnings.

Still on the fence? You’re not alone. Analysts like Shravan Shetty (Primus Partners) say the market sees Lenskart as a tech play that could scale quickly. But others, like Shivani Nyati (Swastika Investmart), strike a neutral tone—the growth prospects are real, but the price is steep.

What to Watch For

• Sustainable profits: Lenskart’s future hinges on improving its unit economics and margins—even as operational costs and competition rise
• International expansion: Can it replicate its success abroad?
• Listing gains vs. long-term returns: The initial pop could be strong, but don’t ignore fundamentals

Real-World Analogies: Investing in Lenskart IPO

Think of investing in Lenskart’s IPO like getting in early on a new tech trend—say, buying a smartphone when few believed in them. There’s excitement, huge potential, but also risk. Early adopters can win big, but there’s no certainty.

If you like the thrill of the new and believe in Lenskart’s vision, you may want a piece of the action. If you’re looking for safe, predictable returns, consider waiting until the company proves it can turn scale into lasting profits.

A Quick Recap: Lenskart IPO at a Glance

• India’s leading eyewear retailer’s IPO is open until November 2
• Seeking a valuation of Rs 70,000 crore; minimum investment Rs 14,874
• GMP rising, suggesting strong listing interest
• Valuation is steep—watch out for sustainability and profits
• Analysts offer mixed but cautiously optimistic views

Final Thoughts: Should You Invest?

At the end of the day, Lenskart’s IPO is a high-profile event in India’s startup and retail space. There’s a lot of promise and plenty of risks. If you decide to invest, do so with a clear understanding of the challenges and don’t base your decision solely on the hype or rising GMP.

Ask yourself: Do you believe in Lenskart’s ability to deliver profits and maintain its competitive edge in a fast-changing market?

As always, it’s wise to consult with a financial advisor before taking the plunge. After all, investing is about making informed decisions that match your risk appetite and long-term goals.

Frequently Asked Questions

• When will Lenskart shares be listed? Likely by November 10.
• How much do you need to invest? The minimum lot size requires about Rs 14,874 (37 shares).
• Is the current GMP reliable? It’s a useful signal, but not a guarantee of profits.
• Should first-time investors apply? Only if you understand the risks and are comfortable with the valuation.

Lenskart’s IPO is making waves. The real question is, will it help you see better returns?

Disclaimer: This analysis is for informational and educational purposes only and do not constitute investment advice. Please consult with certified professionals before making any investment decisions.