Lenskart Solutions is set to make its public market debut on Monday (November 10) but the pre-listing sentiment has taken a sharp turn. The grey market premium (GMP) for the eyewear retailer has plunged to zero, erasing all the early enthusiasm that once suggested a listing pop of more than 25%.
The GMP, which had touched a high of Rs 108 prior to the IPO announcement, now indicates no premium over the issue price. According to reports, Lenskart may see a flat or marginal debut despite strong investor demand during the subscription window.
Subscription frenzy
Lenskart’s Rs 7,278 crore IPO was subscribed a robust 28 times overall. It is important to note that GMP movements reflect unofficial sentiment and can fluctuate sharply. As of now, the estimated listing price stands at around Rs 402 per share, the upper end of the IPO price band of Rs 382-402.
Institutional investors led the subscription frenzy. The Qualified Institutional Buyers (QIB) portion was oversubscribed 40.35 times, driven by strong participation from foreign institutional investors, domestic financial institutions and mutual funds.
The Non-Institutional Investor segment also saw heavy bidding at 18.23 times, with HNIs applying 21.81 times their quota. Retail investors subscribed 7.54 times, while the employee segment drew bids 4.96 times.
Listing tomorrow
The share allotment was finalised on November 6 and the issue will list on the BSE and NSE on November 10. The IPO ran from October 31 to November 4.
At the top end of its price band, Lenskart is eyeing an estimated valuation of approximately Rs 72,700 crore. The IPO comprises a fresh issuance of 5.35 crore shares worth Rs 2,150 crore and an offer for sale of 12.76 crore shares totalling Rs 5,128.02 crore.
While subscription numbers reflect confidence in Lenskart’s long-term growth narrative, the crash in GMP indicates that its much-anticipated market debut could be a subdued one.