India’s Lenskart debuts at discount after 28x oversubscribed IPO

Lenskart debuted on India’s stock exchanges on November 10 at a discount to its issue price of 402 rupee (US$4.53) per share.

Shares of the eyewear retailer opened 3% lower on the BSE at 390 rupee (US$4.40), and 1.7% down on the NSE at 395 rupee (US$4.46), valuing the company at 68,527 crore rupee (US$773.9 million) on the NSE at listing.

Lenskart, based in India and operating an omnichannel eyewear business, reported strong demand for its IPO, which was subscribed 28.3x by its final day on November 4.

Institutional investors bid for 40.3x their allotted shares, while non-institutional and retail investors subscribed 18.2x and 8x their portions, respectively.

The grey market premium for Lenskart shares dropped to zero from a high of 108 rupee (US$1.22) per share before the listing.

Brokerage Ambit Capital has given the stock a “sell” rating, citing limited upside at current valuations.

Lenskart targeted a 70,000 crore (US$790 million) valuation rupee with its 7,278 crore rupee (US$82.1 million) IPO.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Lenskart’s 3% listing discount stems from valuation stretch

Revenue rose 43% to ₹5,610 crore in FY 2024, yet the company posted a net loss of ₹10 crore 1. That kept investors wary of the IPO price.
The grey market premium fell from ₹108 to zero before listing, even with 40.3x institutional subscription and a ₹70,000 crore target valuation. Near-term pricing sentiment cooled.
India’s eyewear market is set to grow from $4.1 billion in 2024 to $7.6 billion by 2030 at an 11.4% Compound Annual Growth Rate (CAGR) 2. Lenskart handles about 300,000 monthly orders across 320+ stores 1, yet margins must improve to support a richer valuation.

Tech vendors can serve optical retail chains growing beyond Lenskart

Lenskart bought AI company Tango Eye in 2023, an Indian computer vision startup focused on in-store analytics, to lift customer experience 2. Optical chains now need point-of-sale systems and inventory tools. They also want augmented reality virtual try-on and Customer Relationship Management (CRM) platforms. That opens space for business-to-business (B2B) software.
Titan Eyeplus, Tata Group’s eyewear chain, and Glaze Opticals are notable players 2. Regional names are adding stores. Lenskart opened its first shop on Mussoorie’s Mall Road in October 2024, taking Uttarakhand to 25 locations with 15 in Dehradun 2. That creates demand for logistics, payments, and last-mile delivery vendors.
Retail stores made up about 42.1% of industry revenue in 2024 while online channels grew fastest 2. Firms that connect online with store operations can help chains add buy-online-pickup-in-store plus digital-first experiences.