Can Lenskart, India’s homegrown eyewear giant, make a big splash on Dalal Street? That is the key question as investors await for susbscription to open for the much-awaited Lenskart IPO this week.The investor expectation can be gauged from the sharp surge in GMP even before the IPO subscription has begun. .
Lenskart IPO: GMP buzz ahead of its opening
The excitement around the IPO is already visible in the grey market, where Lenskart shares are trading at a premium of Rs 108. This suggests a potential listing price of about Rs 510 per share, nearly 27% higher than the IPO’s upper price band of Rs 402.
However, investors should note that the GMP is only an unofficial indicator, and actual listing prices depend on overall market sentiment and demand during subscription.
Financialexpress.com spoke to analysts about the issue. Most consider the valuation stretched at current levels. According to Sunny Agrawal – Head of Fundamental Research, SBI Securities, “At the current price, it is ideal for those looking at long-term plays in the retail eyewear manufacturing-to-consumer platform. Going forward, the key metrics to track will be the ability of the business to scale its profitability inline with its international peers.”
Lenskart IPO: Subscription opens October 31 and key dates
The Lenskart IPO opens on October 31 (Friday) and closes on November 4 (Tuesday). The basis of allotment is expected on November 6, while the listing on both BSE and NSE is scheduled for November 10, with trading starting at 10 AM.
Lenskart IPO: Price band and lot size
Lenskart has set a price band of Rs 382–402 per share. Retail investors can apply for a minimum of 37 shares, amounting to Rs 14,874 per lot, and up to 13 lots (481 shares or Rs 1.93 lakh).
The offer is divided into –
- 75% reserved for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 10% for Retail Investors
Lenskart IPO: A Rs 7,278 crore issue
The eyewear company’s public issue size stands at a Rs 7,278 crore. It is a blend of a fresh issue and an offer for sale (OFS).
The fresh issue will raise Rs 2,150 crore, while the OFS will see promoters and investors offload 12.75 crore shares, worth Rs 5,128 crore.
Lenskart IPO: Big names offloading stake
As part of the OFS, key promoters Peyush Bansal, Neha Bansal, Sumeet Kapahi, and Amit Chaudhary, along with global investors such as SoftBank’s SVF II Lightbulb (Cayman), PI Opportunities Fund II, Macritchie Investments, Schroders Capital, Kedaara Capital, and Alpha Wave Ventures, will be selling shares.
In a recent pre-IPO round, Radhakishan Damani, the billionaire investor and DMart founder, reportedly invested Rs 90 crore.
Lenskart IPO: Issue objectives
The proceeds from the fresh issue are placed for multiple growth initiatives. This includes from expanding its company-owned stores (CoCo) across India to repaying store rentals, upgrading tech infrastructure, and strengthening its brand marketing.
Furthermore, the company also aims to use part of the funds for strategic acquisitions and general corporate purposes as it scales its footprint in India and overseas.
Lenskart IPO: Business overview
The company was founded in 2008. It began as an online eyewear platform and opened its first physical store in 2013.
As of the latest, the company has transformed into a multi-channel retail powerhouse, operating across Tier-1 and Tier-2 cities and expanding into Southeast Asia and the Middle East.
