Lenskart Solutions Ltd IPO: Subscription Soars

Here’s a breakdown of what’s happening — and whether you should consider applying.

✅ What the numbers say

On Day 2 of bidding, the IPO was subscribed around 2.0 times overall (≈2.02×) according to multiple sources.
The retail portion (for individual investors) alone is booked more than 3× (≈3.33×) on Day 2.
The grey-market premium (GMP) is showing signs of easing: while earlier it hinted at a ~21% (GMP ₹85 over top price band) it has dropped to ~15% or so.

Such subscription and GMP figures highlight strong investor interest — especially from retail buyers.

🤔 Why the strong interest?

Lenskart is a significant player in the with both online and offline presence, plus
It’s operating in an under-penetrated market: growing awareness of vision issues, rising fashion eyewear demand, omni-channel retail strength.
For many investors, the IPO offers access to a ‘growth story’: scale + brand + retail + tech.

⚠️ But there are very notable caveats

Valuation is stretched. At the upper band (₹402), the implied valuation is nearly ₹70,000 crore. Some brokerages estimate in the hundreds (200-500×) on
Profitability concerns: While Lenskart reported a profit in FY25, much of it is due to one-time gains and the underlying is still very thin (~2% after adjustments).
Risk of execution: Scaling offline plus international expansion plus has cost,competition, While GMP started high, the drop suggests secondary market view is cautious — could signal limited listing gains or investors expecting moderate returns.

📋 Should you apply? My view

Here’s how I’d frame it:

If you are a long-term investor (5-10 years), believe in the growth of organised eyewear in India, are comfortable with high risk for high potential, then yes — applying could make sense. The business has promise.
If you are a short-term trader hoping for quick listing gains, caution is warranted. The valuation is high, the GMP has softened, meaning the “pop” at listing may be modest.
If you are value-oriented or risk-averse, you might wait for listing and watch how the business performs post-IPO (earnings, margins, store rollout) before deciding.

Key rule: Don’t be swayed just by subscription numbers. High demand is good, but doesn’t guarantee outstanding returns if the business does not live up to expectations.

🧮 Practical checklist before you apply

Check At ₹402 upper band, lot of 37 shares ⇒ investment ~ ₹14,874 minimum.
Decide your price band preference: Unless you strongly believe in the business and growth, you might choose a lower band (₹382) rather than upper.
Decide your holding horizon: Are you comfortable with 3-5 years of wait, or do you expect immediate gains?
Consider your allocation size: Given the risk, don’t overweight your portfolio on one IPO.
Check Often may be subject to lock-ins; understand what happens post listing.
Post‐listing plan: Will you hold or set target price? Monitor first 1-2 quarters to see if margins improve and store expansion is proving profitable.

🔍 Bottom line

The Lenskart IPO is very well subscribed and clearly has market excitement behind it. But excitement alone doesn’t ensure outsized returns — especially when the price you pay is high. If you believe the company will translate its growth into enduring profitability and you’re comfortable with risk, it may be worth applying. If you want safer or cheaper entry, you might wait and see how it performs post‐listing.

Search This Blog

Sparcminds.media