Lenskart's IPO subscribed over 28x on the final day despite valuation concerns

Eyewear retailer Lenskart Solutions’ Rs 7,278 crore IPO witnessed strong investor demand, closing with an overall subscription of 28.27 times on Tuesday, November 4. 

According to exchange data, the qualified institutional buyers (QIB) category led the surge with bids at 40.36 times, while the non-institutional investors (NII) and retail investor portions were subscribed 18.23x and 7.56x, respectively. The portion reserved for employees was subscribed 4.96x.

The IPO, which opened on October 31 and closed on November 4, sought to raise a total of Rs 7,278 crore, including a fresh issue of Rs 2,150 crore and an offer for sale (OFS) of Rs 5,128 crore by existing investors. The price band was fixed between Rs 382-Rs 402 per share. 

Founder and CEO Peyush Bansal is set to offload shares worth Rs 824 crore, earning an estimated 21x return on his original investment. At the upper end of the price band, Bansal’s remaining stake post-listing will stand at approximately 8.78%. Existing shareholders, including SoftBank Vision Fund, Temasek Holdings, TR Capital, and Alpha Wave Global, also participated in the OFS component.

Lenskart operates a direct-to-consumer (D2C) model that bypasses intermediaries, enabling faster delivery and lower pricing. The company has established a strong omnichannel presence, combining an extensive online platform with over 2,700 physical stores across cities in India and select global markets, including Singapore, Dubai, and Riyadh. 

The allotment of shares is expected to be finalized on November 6, with listing on the BSE and NSE likely on November 10.