Lenskart IPO Receives Strong Investor Response Amid Growing Market Optimism
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| Lenskart IPO 2025: ₹7,278 Crore Public Issue Opens |
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he much-awaited initial public offering (IPO) of Lenskart Solutions Ltd has become the latest focal point for India’s primary market, signaling continued investor confidence in the consumer retail and eyewear sector. With a price band set between ₹382 and ₹402 per share, the IPO aims to raise a massive ₹7,278 crore, positioning Lenskart among India’s largest retail-sector listings of the year. The public subscription window opened on October 31 and is scheduled to close on November 4, 2025.
Founded in 2008, Lenskart has transformed from an online-only platform into a leading omnichannel eyewear giant with operations across India and several international markets. The company’s IPO is being closely tracked not only for its sheer size but also as a barometer of investor appetite for digitally-driven consumer retail brands making the leap to public markets.
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Read Full ArticleIPO Overview and Valuation Highlights
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ccording to the company’s red herring prospectus, the IPO comprises a fresh issue of ₹2,150 crore and an offer for sale (OFS) of 12.75 crore equity shares by promoters and existing investors. The total issue size of ₹7,278 crore at the upper price band implies a valuation of nearly ₹69,700 crore—making Lenskart one of the most valuable consumer startups to go public in 2025.
Anchor investors have already shown strong confidence in the offer, subscribing to ₹3,268 crore worth of shares ahead of the IPO launch. Approximately 8.13 crore equity shares were allotted to 147 institutional investors at ₹402 each, including major domestic and global funds. Analysts note that such strong anchor participation often provides stability and boosts credibility during the public bidding process.
The IPO is being managed by a consortium of investment banks, including Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, and Citigroup Global Markets. Shares are proposed to be listed on both the NSE and BSE, with the final listing expected around November 10, 2025.
Use of Proceeds and Business Expansion Strategy
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he funds raised through the fresh issue will primarily support Lenskart’s capital expenditure plans. This includes setting up new company-operated and company-owned (CoCo) stores across Tier-1 and Tier-2 cities in India. In addition, the company plans to allocate part of the proceeds to enhance its technology and cloud infrastructure, improve brand marketing initiatives, and cover expenses associated with store leases, rent, and licensing.
Lenskart’s expansion strategy focuses on strengthening its omnichannel presence—a blend of online convenience and offline experience. By integrating in-store technology like 3D face scanning, virtual try-ons, and quick prescription mapping, the company aims to bridge the gap between traditional optical retailing and digital convenience. This approach, management believes, will help the company sustain long-term competitive advantages.
Company Background: From Startup to Industry Leader
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stablished by Peyush Bansal and his co-founders, Lenskart began as a small e-commerce venture targeting India’s underpenetrated eyewear market. Within a decade, it emerged as the country’s largest eyewear brand, commanding both retail and online segments. The company opened its first physical store in New Delhi in 2013 and has since grown to over 2,000 stores across India, with expansion footprints in Southeast Asia and the Middle East.
The brand’s growth has been supported by its vertically integrated business model—covering design, manufacturing, supply chain management, and retail sales. Lenskart’s joint venture in China (Baofeng Framekart Technology Ltd), in which it holds a 51% stake, helps maintain production efficiency and cost control.
From offering affordable eyeglasses to introducing premium collections and collaborations, the company has diversified its portfolio to cater to different demographics. Its aggressive pricing, fast delivery, and free eye test campaigns have made it one of India’s most recognized consumer brands.
Grey Market Premium and Investor Sentiment
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he grey market premium (GMP) for the Lenskart IPO has been fluctuating in the range of ₹70–₹108 over the last week, indicating a potential listing gain of 17–27% over the issue price. As of November 3, 2025, the GMP stood around ₹85, translating to an estimated listing price of approximately ₹487 per share—about 21% above the upper price band of ₹402.
Market analysts attribute this enthusiasm to Lenskart’s strong brand equity, rapid revenue growth, and improving profitability. However, some caution that GMP figures can be volatile and speculative, often influenced by broader market conditions and short-term sentiment.
“While the grey market reflects strong optimism, investors should focus on fundamentals rather than short-term price movement,” said an analyst from SBICAP Securities. “Given the company’s improving EBITDA margin and long-term growth potential, Lenskart offers an appealing, though high-valued, opportunity.”
Subscription Status and Retail Demand
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he IPO witnessed solid demand from institutional and retail investors on its opening day. According to BSE data, the overall subscription stood at 1.13 times on Day 1 and 1.62 times by the end of Day 2. The retail portion was subscribed 2.67 times, while the Qualified Institutional Buyers (QIBs) category saw bids worth 1.45 times the available shares. Non-Institutional Investors (NIIs) subscribed 1.28 times, and the employee portion received 2.16 times subscriptions.
Experts view this balanced demand as a positive indicator of confidence in Lenskart’s long-term growth story, especially since large institutional funds are driving much of the participation. The IPO’s healthy subscription levels could also result in a tight allotment scenario for retail investors.
Financial Performance and Growth Outlook
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ver the past three years, Lenskart has shown impressive revenue growth and operational resilience. The company turned profitable in FY24, driven by higher sales in both domestic and overseas markets. EBITDA margins improved from 7.0% in FY23 to 14.7% in FY25, according to financial disclosures.
Brokerage houses such as SMIFS and SBICAP Securities have issued “Subscribe for Long Term” recommendations, citing Lenskart’s robust business model, expanding addressable market, and margin improvement potential. SMIFS noted that the company’s quick payback period of around 10 months for new stores and strong unit-level economics enhance its long-term investment appeal.
However, analysts also caution against over-enthusiasm, pointing to its steep valuation and dependency on imports from China. Any disruption in the supply chain could temporarily affect the cost structure and delivery cycles.
Market Risks and Competitive Landscape
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lthough the growth potential in India’s eyewear market remains vast—with over 750 million people affected by vision problems—competition is heating up. Lenskart faces rivals in both organized and unorganized retail segments. Additionally, premium international brands are eyeing the same customer base through online sales and boutique stores.
Another concern among analysts is the sizable Offer for Sale component. Many early investors and promoters, including Peyush Bansal and global private equity funds like Kedaara Capital, Alpha Wave Ventures, and SoftBank’s SVF II Lightbulb, are partially divesting their stakes. While such exits are common, they can occasionally signal that early investors see limited near-term upside.
Nonetheless, Lenskart’s expanding offline presence, rising brand recall, and increasing eyewear adoption rates among younger demographics could offset these challenges. The company’s steady movement toward profitability and operational efficiency adds to investor confidence.
Expert Reviews and Market Outlook
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rokerage reviews suggest cautious optimism. SBICAP Securities remarked that the business model is uniquely positioned to capture a rapidly growing yet under-penetrated organized eyewear segment in India. “Given the company’s consistent financial improvement and strong operational performance, we expect steady profitability enhancement in the medium to long term,” its note stated.
Similarly, analysts at SMIFS pointed out that the company’s return to profitability, market penetration potential, and strong store economics justify a long-term investment perspective. They estimate that if execution remains strong, Lenskart could continue expanding margins while maintaining revenue growth above 20% annually.
That said, experts warn that IPO valuations already price in much of the near-term optimism, and future price performance will depend heavily on quarterly results post-listing.
Conclusion: A High-Growth Play with Long-Term Promise
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he Lenskart IPO encapsulates the growing investor appetite for consumer-focused, tech-integrated companies in India. It also represents the broader evolution of Indian retail—from unorganized, price-sensitive sectors to structured, experience-driven brands.
For short-term investors, modest listing gains appear likely given the strong anchor interest and grey market buzz. For long-term investors, the story lies in Lenskart’s execution ability, scalability, and margin sustainability in a competitive retail environment.
As the company moves toward listing, all eyes remain on its ability to balance rapid expansion with profitability—a challenge that has defined India’s modern retail success stories. If Lenskart continues its trajectory, it could well emerge as one of India’s next major consumer giants, driving both shareholder and customer value in the years ahead.
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