Lenskart sets IPO price band at Rs 382-402 per share; subscription opens October 31, 2025

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Key IPO Details

  • The company has announced a price band of ₹382 to ₹402 per equity share (face value ₹2). 

  • The subscription window opens Friday, October 31, 2025 and closes Tuesday, November 4, 2025.

  • Basis of allotment is expected around November 6, 2025, with listing targeted for November 10, 2025 on both the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE).

  • The issue comprises:

    • A fresh issue of ~₹2,150 crore.

    • An Offer for Sale (OFS) by existing shareholders of ~127.6 million equity shares (≈ ₹4,800-5,100 crore depending on final band).

    • Total IPO size is approximately ₹7,278 crore at the upper band. 

  • Minimum lot size for retail investors is 37 shares, which means at the upper price band (~₹402) the minimum investment is ~₹14,874.

Business Snapshot & Growth Trajectory

  • Lenskart began as an online eyewear retailer and has grown into an omni-channel business with a large store footprint in India.

  • In FY 2024-25, the company reported revenue of ~₹6,652.5 crore (up ~22.6% from ~₹5,427 crore in FY 2023-24) and net profit of ~₹297.3 crore, marking a turnaround from a loss of ~₹10.15 crore in FY 2023-24. The business aims to use IPO proceeds toward:

    • Setting up new company-owned (“CoCo”) stores in India

    • Lease/rent/license payments for store roll-out

    • Investing in technology & cloud infrastructure

    • Marketing & brand building 

Valuation & Market Sentiment

  • At the upper band of ₹402, the IPO values Lenskart at roughly ₹70,000-72,000 crore (or about US$8 billion) according to pre-issue calculations. 

  • In the grey market, there has been a premium (GMP) of around ~19% (as of ~Oct 27) over the upper band, indicating strong investor appetite.

  • Earnings per share (EPS) for FY25 is ~₹1.76, which implies a P/E ratio of ~217x – 228x at the band price depending on final figures.

Strengths & Opportunities

  • Strong brand recognition in the domestic eyewear segment, with a growing omni-channel presence.

  • The eyewear market in India has tailwinds: rising vision problems, increasing health awareness, and deeper penetration of optical retail. (Mentioned in Reuters piece)

  • Financial turnaround: From losses to profit and EBITDA margin expansion (~14.6% in FY25) signals behavioral shift.

  • Use of fresh capital toward growth (store expansion, tech investment) aligns with growth ambitions.

Key Risks & Considerations

  • Valuation appears steep: P/E above 200x is high for a consumer retail company, which may leave little room for error.

  • Execution risk: Store expansion and infrastructure investment always carry risk of cost overruns or slower ramp-up.

  • Competitive landscape: Both offline and online eyewear retail remain crowded and margins may face pressure.

  • Market sentiment: Listing gains depend on macro environment and IPO markets; high GMP doesn’t always guarantee performance.

  • As per reports, the grey market premium has softened from ~27% to ~18% in recent days.

What This Means for Investors

  • For retail investors: With a minimum investment of ~₹14,874, the offering provides access to a high-growth domestic brand. However, they must assess whether the premium being paid is justified by the business outlook.

  • For long-term investors: The strength of business model and growth runway matter more than short-term listing gains. The company’s ability to execute on store expansion and maintain margin discipline will be critical.

  • Listing outlook: Given the GMP and market sentiment, there may be listing gains, but entering fully based purely on listing gain expectation is risky due to the high valuation and execution uncertainty.

Verdict

The Lenskart IPO is a marquee offering in 2025, reflecting both the maturation of Indian consumer brands and strong investor appetite for growth stories. The ₹382-₹402 price band sets a high bar — the company must deliver on execution to justify this valuation. For prospective investors, the decision hinges on belief in Lenskart’s expansion narrative and comfort with the valuation premium.



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