Lenskart IPO Day 1: Retail portion sees full subscription; overall bids at 107%

The highly anticipated initial public offering (IPO) of eyewear retailer Lenskart Solutions got off to a strong start on Friday, with the ₹7,278.02 crore issue drawing healthy investor interest on Day 1.

By 3:18 pm, the issue had received bids for 10.64 crore shares against the total issue size of 9.97 crore shares. Ahead of the IPO, Lenskart had raised ₹3,268 crore from 147 anchor investors. The issue will remain open for subscription until November 4.

The demand was led by retail investors, whose allotted portion of 1.80 crore shares was subscribed fully at 1.15 times. The participation from qualified institutional buyers (QIBs) stood at 1.42 times and non institutional investors at 0.31 times.

Lenskart's lofty valuation

While excitement around India's largest optical retail brand continues to build, Lenskart's lofty valuation has sparked debate. At the upper end of the price band of ₹402 per share, the IPO values the company at around 235-238 times its FY25 earnings.

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Defending the valuation, CEO Peyush Bansal pointed to the company's strong performance and growth outlook. "Our job is to create value for the customer, and now, increasingly for the shareholder as well. Valuation is what the market decides," he said.

He added that investors on both the buying and selling sides had done their due diligence. "All I can say is, they'll be very close to comparable, they won't be off. Sometimes, when you look at things without the full perspective, they seem different. But be rest assured, everything will be in line with what it should be. I don’t expect anything abnormal."

The IPO comprises a fresh issue of ₹2,150 crore and an offer for sale (OFS) of ₹5,128 crore, taking the total issue size to ₹7,278 crore.

The proceeds will be used to expand its retail footprint, strengthen its technology infrastructure, and boost marketing efforts.

Founded in 2010, Lenskart is one of India's largest omnichannel eyewear retailers, combining a robust digital presence with a growing network of physical stores.

The company operates 2,137 stores in India and 669 internationally, and has introduced innovations such as virtual try-ons and home eye tests, helping it build a strong brand and loyal customer base.

In FY25, Lenskart posted a net profit of ₹297 crore, marking a sharp turnaround from a loss of ₹10 crore in FY24. The company's revenue surged 22% year-on-year to ₹6,625 crore, driven by rising domestic demand and expanding international operations.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Avendus Capital, Citigroup Global Markets India, Axis Capital, and Intensive Fiscal Services are acting as the book-running lead managers for the Lenskart Solutions IPO.

The allotment for the Lenskart Solutions IPO is expected to be finalised on November 6 and the company will make its debut on the stock exchanges on November 10.