Lenskart's Rs 7,278 crore IPO gets fully subscribed on Day 1 amid valuation concerns

Lenskart Solutions’ Rs 7,278 crore initial public offering (IPO) opened for subscription on Friday, drawing strong investor response and achieving full subscription on the first day.

The issue, which will close on November 4, is priced in the range of Rs 382 to Rs 402 per equity share. The company’s shares are likely to list on the BSE and NSE on November 10, according to the tentative timeline.

The IPO comprises a fresh issue of shares worth Rs 2,150 crore and an offer for sale (OFS) of Rs 5,128 crore by existing shareholders, including SoftBank, Kedaara Capital, and Temasek. The proceeds from the fresh issue will be used for business expansion, including retail network growth and technology investments.

By the end of Day 1, the IPO was subscribed 1.13 times, receiving bids for 11.25 crore shares against 9.97 crore shares on offer. The Qualified Institutional Buyers (QIBs) segment led demand, with 1.42 times subscription.

Retail investors also showed strong interest, subscribing 1.32 times, while the employee portion saw 1.10 times subscription. Non-institutional investors (NIIs) subscribed 0.41 times, with smaller NIIs applying for 0.63 times the shares available in their category. 

Despite strong investor interest, the offering has sparked valuation concerns, as analysts estimate the company’s price-to-earnings (P/E) ratio at around 230 times.

In an interview with CNBC-TV18, Lenskart CEO Peyush Bansal defended the valuation, pointing to the firm’s 90% CAGR in EBITDA and the long-term growth potential of India’s eyewear market.

In total, Lenskart received 4.70 lakh applications on the opening day. According to analysts, Lenskart’s strong financial performance and operating efficiency have supported investor confidence. Revenue grew at a compounded annual rate of 32.5% to Rs 66,525 million in FY 2025, while EBITDA expanded 3.7 times to Rs 9,755 million, lifting margins from 6.96% to 14.66%.

The company swung to a net profit of Rs 2,973 million in FY 2025 from a loss of Rs 637 million in FY 2023. Return on capital employed (ROCE) improved to 13.8%, and product margins rose to 67.9%. 

At the upper price band, the issue is valued at a price-to-earnings ratio of 238x, based on FY 2025 earnings per share of Rs 1.71. The IPO allotment is scheduled to be finalised on November 6, with listing expected on the BSE and NSE on November 10.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Avendus Capital, Citigroup Global Markets India, Axis Capital, and Intensive Fiscal Services are acting as the book-running lead managers for the IPO, while MUFG Intime India serves as the registrar.

As of March 2025, Lenskart operated 2,723 stores globally, 2,067 in India and 656 overseas, comprising 1,757 owned and 310 franchised outlets within the domestic market. In FY25, the company launched 105 new collections, including collaborations with well-known brands and personalities.