After a sellout IPO, Lenskart makes weak debut on bourses amid valuation concerns
So much for the hype—Lenskart’s IPO was the talk of the town, with investors queuing up to get a piece of the action. But when the shares finally hit the market, the party fizzled out faster than a flat soda. Despite a 28x oversubscription and a sky-high valuation, the stock opened below its issue price, dipped sharply, and only managed to claw back to breakeven by the end of the day. It seems the market’s love affair with Lenskart cooled off the moment the trading bells rang, leaving analysts scratching their heads and investors wondering if they bought into a dream or a mirage.
Lenskart’s IPO raised ₹7,278 crore and was priced between ₹382–₹402 per share, with a market cap touching ₹70,000 crore. The company, India’s largest eyewear retailer by volume, boasts a strong omnichannel presence and robust revenue growth. However, its lofty valuation—10.1x FY25 EV/Sales and 68.7x EV/EBITDA—raised eyebrows, prompting sell ratings from major brokerages. The tepid debut highlights the risks of overvaluation in high-growth consumer brands, even with strong fundamentals and investor enthusiasm.
