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Shares of Lenskart Solutions Ltd made a muted debut on the Indian markets today, disappointing market expectations despite strong demand during the IPO. The listing continues the recent trend of muted market debuts, making Lenskart the third IPO in a week to open below its issue price.
On the BSE, Lenskart shares opened at Rs. 390, a 2.99% discount to the issue price of Rs. 402. On the NSE, the stock debuted slightly higher at Rs. 395, down 1.74%.
The listing price fell short of grey market estimates, which had indicated a modest premium of around Rs. 10 per share or a 2.5% gain.
The initial public offering of Lenskart, worth Rs. 7,278 crore, generated strong interest from investors and was overall subscribed at 28.26 times.
The demand from institutional investors was highest, the Qualified Institutional Buyers (QIBs) portion was subscribed 40.35 times, the Non-Institutional Investors (NIIs) portion was subscribed 18.23 times, and the Retail Investors portion was subscribed 7.54 times.
The issue consisted of a fresh equity raise of Rs. 2,150 crore and an offer for sale (OFS) of 12.75 crore shares by existing shareholders and promoters. Shares were offered at a price band of Rs. 382-Rs. 402, valuing the company at around Rs. 69,700 crore at the upper end.
Analysts believe the cautious market response comes from valuation concerns and profit sustainability.
Despite turning profitable in FY25, with a reported net profit of Rs. 297 crore after years of losses, part of the gain was attributed to one-off items, prompting doubts about the consistency of future earnings.
“Despite strong brand visibility and market leadership, Lenskart’s premium valuations and recent financial volatility weighed on investor sentiment,” said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.
She advised medium- to long-term investors to hold positions with a stop loss near Rs. 350, while short-term traders may look for other opportunities.
Ambit Capital initiated coverage on the stock with a ‘Sell’ rating, setting a target price of Rs. 337, implying a potential 16% downside from the IPO price.
Also Read: Top Upcoming IPOs in November 2025 You Shouldn’t Miss
Proceeds from the IPO will be used to fund the expansion of company-owned stores (CoCo model), lease payments, technology investment, cloud infrastructure, and brand marketing. Additionally, the proceeds will be used for corporate purposes and to fund strategic acquisitions.
According to analysts, the company’s growth story remains compelling, but execution risks along with competition in India's price-sensitive eyewear market might affect the company's short-term gains.
