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Lenskart IPO Subscription Hits 28x Amid Market Optimism
Shares of Lenskart Solutions rebounded sharply following a subdued market debut on Monday, November 10. Lenskart’s stock initially listed at ₹390 on the BSE, representing a 3% discount to its IPO price of ₹402, while on the NSE, shares debuted at ₹395, down 1.74% from the issue price.
Despite the weak start, positive market sentiment helped the stock climb to an intraday high of ₹409.90 on the BSE and ₹413.75 on the NSE during the session.
Strong IPO Subscription
Lenskart’s initial public offering (IPO) witnessed strong investor demand, being subscribed 28.26 times. The company raised a total of ₹7,278.02 crore, comprising a fresh issue of 5.35 crore equity shares worth ₹2,150 crore and an offer-for-sale (OFS) component of 12.76 crore shares, amounting to ₹5,128.02 crore.
The IPO highlighted the market’s confidence in Lenskart’s growth prospects, reflecting investor appetite for organised eyewear in India.
Robust Growth Outlook
A key strength of Lenskart lies in its vertically integrated business model. The company manufactures frames and lenses in-house, operates an extensive omnichannel retail network, and relies on a data-driven supply chain. Its aggressive expansion into tier-II and tier-III cities positions Lenskart for long-term growth.
Shivani Nyati, Head of Wealth at Swastika Investmart, noted:
“Lenskart’s premium brand perception, subscription-based revenue stream, and rising penetration in smaller markets have positioned it as a category leader in India’s fast-growing organised eyewear sector.”
Similarly, Seema Srivastava, Senior Research Analyst at SMC Global Securities, emphasized Lenskart’s integrated approach:
“The company’s vertical integration—from manufacturing to retail—enables cost efficiency, quick delivery, and strong scalability. Its omnichannel presence strengthens its competitive position.”
Lenskart delivered a robust FY25 performance with ₹6,652 crore revenue and an EBITDA margin of 14.6%, according to Srivastava. She added:
“Focus on innovation, smart eyewear, and technology-driven customer experience underpins Lenskart’s long-term growth potential.”
Market Leadership in Organised Eyewear
Lenskart’s position as a dominant player in India’s organised eyewear market stems from its extensive retail footprint, strong brand equity, and integrated operations. Analysts highlight that the company is well-placed to leverage the growing demand for eyewear, both domestically and internationally.
Nyati observed:
“The combination of a subscription-based model, premium offerings, and geographic expansion creates a healthy growth trajectory.”
Valuation Concerns
Despite optimism around growth, many analysts caution about Lenskart’s premium valuation. Abhinav Tiwari, research analyst at Bonanza, stated:
“The stock listed 3% below the issue price, reflecting concerns about its high valuation. With a PE ratio of around 238 times, much of its growth appears already priced in.”
Srivastava also noted that the stock is richly valued:
“Lenskart’s future growth is largely factored into the current price, raising questions about short-term margin of safety.”
Risks and Operational Challenges
While Lenskart’s growth story remains compelling, analysts highlight potential risks. These include dependence on imported materials, supply chain disruptions, competitive pressures, and the challenge of sustaining margins amid global expansion. Srivastava remarked:
“Global expansion and reliance on external supplies may create operational vulnerabilities in the short term.”
Rapid expansion, while supporting market leadership, also entails high operational and capital expenditure. Analysts caution that these factors may affect near-term profitability and require careful execution.
Analyst Perspectives
Market commentators stress that Lenskart’s IPO and strong subscription indicate confidence in its long-term positioning. However, there is broad recognition that valuation remains a sensitive factor, and short-term stock movements could reflect both growth expectations and market caution.
Nyati highlighted Lenskart’s medium- to long-term potential:
“Earnings visibility, expanding store footprint, and the integrated business model create a solid growth narrative for the company.”
Tiwari emphasized caution for market participants:
“While Lenskart leads India’s organised eyewear market, rapid expansion and heavy spending could limit near-term profits. Investors should be aware that much of the growth is already priced in.”
