Lenskart sees muted listing after frenzy in run-up to IPO
Lenskart entered the stock market spotlight with much fanfare, boasting a ₹7,278 crore IPO that was oversubscribed by over 28 times. Yet, the expected fireworks on listing day fizzled into a subdued debut, with shares opening at a 3% discount and slipping further below the issue price. The steep valuation and mixed market sentiments made the post-IPO trading more of a cautious waltz than the anticipated listing frenzy. It seems Lenskart's blockbuster fundraising was a victim of its own hype — robust business metrics notwithstanding, investors opted for restraint, reflecting deeper concerns about premium pricing and thin margins after adjusting for one-time gains.
From a financial perspective, Lenskart’s FY25 turnaround with profit at ₹297 crore (up from losses) and revenue crossing ₹7,000 crore signaled solid operational progress, particularly driven by innovations such as AI-enabled Home Try-On and extensive offline service kiosks. Yet valuations around 10x sales and nearly 69x EBITDA multiples sparked questions about sustainability in market pricing. The muted listing, close to the issue price and below grey market premium expectations, underscores a broader trend where IPO hype does not always translate into listing day exuberance. Investors appear to be tempering enthusiasm with pragmatism, betting on Lenskart’s long-term growth while cautiously navigating its rich valuation terrain.
