Lenskart IPO: GMP falls to ₹48 ahead of issue launch on Friday

Shares of eyewear retailer Lenskart Solutions Ltd. are trading at a 12% premium in the grey market, an unofficial ecosystem where shares change hands before IPO allotment and continue trading until the listing day. Investors often track the grey market premium (GMP) to gauge potential listing gains.

The IPO premium has slipped to ₹48, down from ₹108 just a few days ago, against the issue price of ₹402 per share. While the stock is still expected to see decent listing gains, the decline in GMP signals a softening in investor sentiment ahead of the debut.

Backed by SoftBank Group Corp, Lenskart Solutions plans to raise up to ₹7,278.02 crore through its IPO, which could value the company at around ₹69,741 crore on a post-issue basis.

The company will offer shares at ₹382-₹402 apiece, with 10% of the issue reserved for retail investors. One lot will comprise 37 shares, requiring a minimum investment of ₹14,874.

Anchor investors can bid for shares later today, while the issue will open for public subscription from tomorrow until November 4.

Lenskart aims to raise ₹2,150 crore through a fresh issue, while existing investors will offload 12.76 crore shares through an offer for sale (OFS).

The OFS will include stakes from founder and CEO Peyush Bansal, SoftBank's SVF II Lightbulb (Cayman), Kedaara Capital, ChrysCapital's PI Opportunities Fund II, KKR's MacRitchie Investments, and Alpha Wave Ventures.

Ahead of the IPO, SBI Mutual Fund invested ₹100 crore in Lenskart, valuing the company at around $7.7 billion, a significant pre-IPO move by one of India's largest domestic fund houses.

The investment follows billionaire investor Radhakishan Damani, founder of Avenue Supermarts (DMart), buying Lenskart shares worth ₹90 crore in a separate pre-IPO transaction.

Post-issue, the promoters' stake is expected to fall from 19.9% to 17.7%.

Over the past three years, the company's revenue has grown over 30% annually, while EBITDA has surged more than 90% a year.

For FY25, Lenskart reported revenue of ₹6,652 crore and a profit of ₹297 crore, including a one-time gain. The company operates over 2,100 stores, with around 40% of its revenue coming from international markets.

Kotak Mahindra Capital, Axis Bank, Avendus Capital, Intensive Fiscal Services, and the local units of Citigroup and Morgan Stanley are advising on the offering.

Founded by "Shark Tank India" judge Peyush Bansal, Lenskart is the latest high-profile name to go public, following two other billion-dollar listings this month. The domestic IPO market is on track for a record month, and possibly its best year ever in 2025.

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