Lenskart IPO Opens Today: High GMP and Valuation Sparks Investor Interest

Lenskart Solutions, India’s leading eyewear retailer, officially opened its Rs 7,278 crore IPO today, setting off a wave of investor interest. The IPO, which will close on November 4, is priced between Rs 382 and Rs 402 per share. The high demand is reflected in the grey market premium (GMP), currently around Rs 120, signaling a potential 16-30% listing gain over the issue price.

The company has already garnered an extraordinary response from anchor investors, bidding approximately Rs 68,000 crore, nearly 10 times the issue size. This robust participation underscores a strong investor appetite for scalable consumer-tech brands in India. The issue comprises a fresh issue of Rs 2,150 crore and an offer for sale of Rs 5,128 crore by existing shareholders like SoftBank, Kedaara Capital, and Temasek.

Market analysts caution that despite bullish GMP signals, valuation levels are high—at about 68.7 times EV/EBITDA—posing long-term risks. Still, the company's rapid revenue growth, global footprint, and expansion plans make the IPO attractive for investors with a high risk appetite and long-term horizon.

Key Highlights

IPO price band: Rs 382-402 per share

Issue size: Rs 7,278 crore, with Rs 2,150 crore fresh issue and Rs 5,128 crore offer for sale

GMP: Approximately Rs 120, signaling strong initial listing gains

Market open: October 31; close: November 4; listing scheduled for November 10

Valuation: Rs 69,700 crore at upper price band, with high EV/EBITDA ratios

Investor recommendations: Cautious optimism, suited for long-term investors willing to withstand valuation risks

Sources: Moneycontrol, Economic Times, Business Standard, Financial Express