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| Lenskart IPO sees strong investor demand on Day 3 — retail participation crosses 4x.(Representing AI image) |
Should You Subscribe to the Lenskart Solutions Ltd IPO? A Deep Dive into Day 3, GMP, Business Model & Outlook
Explore Lenskart’s ₹7,278 crore IPO (₹382-402/share), its Day 3 subscription numbers, potential listing gains (GMP), business fundamentals, risks, and whether retail investors should consider applying.
- Dr.Sanjaykumar pawar
Table of Contents
- Introduction
- IPO Snapshot & Subscription Status
- Understanding the Grey Market Premium (GMP)
- Business & Industry Analysis
- 4.1 Market Opportunity
- 4.2 Lenskart’s Model & Strengths
- 4.3 Financial Performance
- Risks & Red Flags
- Valuation & Listing Outlook
- Should You Subscribe? My Opinion
- FAQs
- Conclusion
- Sources
1. Introduction
Lenskart IPO – The Visionary Listing Everyone’s Watching in 2025
The Lenskart Solutions Ltd IPO has become one of the most talked-about events in India’s capital market this year. Backed by a solid brand image and a strong online–offline presence, the company’s ₹7,278 crore initial public offering is capturing attention across retail and institutional investors alike. Open for subscription from October 31 to November 4, 2025, the IPO is priced between ₹382 and ₹402 per share, valuing the eyewear giant at nearly ₹70,000 crore at the upper end of the price band.
The enthusiasm is evident in the numbers. By the end of Day 3, Lenskart’s IPO has witnessed a 2.77× overall subscription, with retail participation crossing 4×, indicating significant investor confidence. Institutional buyers (QIBs) and non-institutional investors (NIIs) have also shown strong interest, suggesting that the market sees potential in Lenskart’s growth story beyond its current scale.
But the big question investors are asking is—is this IPO worth subscribing to? While Lenskart’s popularity and brand recall are undeniable, the company’s lofty valuation and recent profitability turnaround warrant deeper analysis. The eyewear segment in India is still largely under-penetrated, and Lenskart’s tech-driven, omni-channel business model could give it a long runway for growth. However, with intense competition, rising costs, and global expansion risks, investors must weigh the opportunities against the challenges.
In this detailed blog, we’ll explore the subscription data, Grey Market Premium (GMP), financial performance, business fundamentals, and expert opinions to help you make an informed investment decision. Whether you’re a retail investor seeking listing gains or a long-term investor betting on India’s eyewear boom, this breakdown will give you the clarity you need before deciding to subscribe.
2. IPO Snapshot & Subscription Status
Here’s a breakdown of the key IPO parameters:
| Parameter | Detail |
|---|---|
| Issue size | ~ ₹7,278 crore (fresh issue ~₹2,150 crore + Offer For Sale (OFS) ~₹5,128 crore) |
| Price band | ₹382 to ₹402 per share |
| Lot size for retail | 37 shares minimum lot (≈ ₹14,874 at upper band) |
| Subscription as on Day 3 | QIB ~1.64×, NII ~4.17×, Retail ~4.05×, Employee ~3.08×, Total ~2.77× |
The Lenskart IPO has become one of 2025’s most closely watched public issues, thanks to its strong brand presence and the investor community’s enthusiasm for consumer-tech startups transitioning to profitability. On the final day of bidding, the ₹7,278 crore public offer witnessed healthy participation across investor categories, signaling robust market confidence in Lenskart’s growth story.
💰 Breakdown of Lenskart IPO: Key Details Investors Must Know
The Lenskart IPO comprises a fresh issue worth ₹2,150 crore and an Offer for Sale (OFS) of ₹5,128 crore, taking the total issue size to approximately ₹7,278 crore. The price band is set between ₹382 and ₹402 per share, valuing the company at over ₹69,700 crore at the upper end.
For retail investors, the minimum lot size is 37 shares, which translates to an investment of around ₹14,874 at the upper band. The IPO opened for subscription on October 31, 2025, and closes on November 4, 2025, with the issue listed on both the BSE and NSE.
This mix of a substantial fresh issue and large OFS component indicates a dual intent: funding expansion while offering early investors and promoters a partial exit opportunity.
📈 Subscription Status on Day 3: Who’s Leading the Race?
According to data from the BSE, as of Day 3 (November 4, 2025), the Lenskart IPO has been subscribed 2.77 times overall, with category-wise details as follows:
- Qualified Institutional Buyers (QIBs): 1.64×
- Non-Institutional Investors (NIIs): 4.17×
- Retail Individual Investors (RIIs): 4.05×
- Employee Category: 3.08×
These figures highlight a strong appetite, particularly from retail and high-net-worth investors (HNIs), who have aggressively subscribed, signaling confidence in Lenskart’s long-term growth trajectory.
💡 What the Numbers Reveal: Sentiment vs. Fundamentals
The subscription pattern paints an interesting picture. While QIB participation—a key indicator of institutional confidence—is moderate, retail enthusiasm has surged nearly fourfold. This suggests that the brand equity of Lenskart, bolstered by its omnichannel presence and the charisma of its CEO, Peyush Bansal, has struck a chord with everyday investors.
However, market analysts caution that much of the retail frenzy could be driven by listing gain expectations and the positive Grey Market Premium (GMP) rather than purely fundamentals. Still, the oversubscription underscores the strong brand trust and optimism surrounding one of India’s most successful consumer-tech stories.
3. Understanding the Grey Market Premium (GMP)
The Grey Market Premium (GMP) is an unofficial indicator that reflects investor sentiment toward an upcoming IPO before its shares are officially listed on the stock exchange. In simple terms, it represents the price difference — or “premium” — at which shares are traded in the grey market compared to their issue price. While it doesn’t have formal regulatory backing, traders and investors often look at the GMP to estimate potential listing gains and gauge how the market perceives a company’s valuation.
What is GMP and How It Works
The grey market operates outside the official stock exchanges, where investors buy and sell IPO shares before the official listing. The premium (or discount) in this informal market indicates the expected listing price. For example, if an IPO’s issue price is ₹400 per share and it is trading at a GMP of ₹70, it implies an estimated listing price of ₹470. This difference helps investors anticipate potential profits or losses on listing day.
Lenskart’s GMP Trend Before Listing
In the case of Lenskart’s IPO, early grey market reports suggested a GMP of ₹70–₹80 per share ahead of its issue. This range indicated a strong appetite among investors, suggesting that the stock could list at a 17–20% premium over the upper price band of ₹402. Such numbers often create buzz in the market, as a higher GMP usually signals robust investor confidence and positive expectations about the company’s future growth.
Interpretation of the GMP
A strong GMP generally reflects optimism — traders believe the company will debut at a higher price than its issue value, rewarding investors with listing gains. However, it’s crucial to remember that the grey market is unofficial and unregulated. The prices there are based on speculation and market rumors rather than verified financial data. Hence, while a high GMP can point to short-term enthusiasm, it should not be treated as a guaranteed indicator of future performance.
Final Outlook
With Lenskart’s Day 3 subscription figures showing strong demand and the GMP remaining positive, the listing outlook appears upbeat. Nevertheless, investors should view GMP as just one of many data points when making investment decisions. It can signal short-term sentiment but does not ensure sustainable long-term returns. Wise investors balance such insights with fundamentals, valuations, and business potential before investing in any IPO.
4. Business & Industry Analysis
4.1 Market Opportunity
India’s eyewear market is still significantly under-penetrated, creating a vast opportunity for organized players like Lenskart. According to a report cited by LiveMint, India sells an estimated 214–263 million eyeglasses annually, which highlights the growing but largely untapped demand for corrective and fashion eyewear.
Several macro trends are driving this rapid expansion. First, rising screen time—across smartphones, laptops, and tablets—has led to a surge in vision-related problems, especially among younger consumers. Second, India’s ageing population is contributing to higher demand for prescription eyewear and reading glasses. Third, consumers are increasingly seeking branded, quality eyewear rather than relying solely on local optical shops, which often lack consistency in service and product quality.
The shift toward organized retail and omni-channel models has further reshaped the eyewear landscape. Customers today expect convenience, style, and professional eye-testing, whether they shop online or in-store. Lenskart has been quick to adapt to this change, blending technology with retail to deliver a seamless buying experience.
Moreover, direct-to-consumer (D2C) business models have lowered costs and improved accessibility. By eliminating middlemen and controlling the entire value chain—from design to delivery—brands like Lenskart can offer high-quality eyewear at affordable prices. With increasing digital adoption across Tier 2 and Tier 3 cities, the potential for market expansion remains substantial.
In short, India’s eyewear market is at an inflection point, driven by rising awareness, affordability, and lifestyle needs. Lenskart’s strong brand positioning and innovation-led approach place it strategically to capture this growing demand.
4.2 Lenskart’s Model & Strengths
Founded in 2008 and entering online retail in 2010, Lenskart has evolved from a niche startup into one of India’s leading eyewear brands. The company opened its first physical store in 2013, marking the beginning of its omni-channel journey—a strategy that combines the efficiency of e-commerce with the trust of in-store experience.
Today, Lenskart operates with a robust online and offline footprint, offering next-day or three-day delivery across many cities. This hybrid approach enables customers to browse online, try frames virtually, and even visit physical stores for fittings or eye tests—creating a cohesive customer experience that few competitors can match.
One of Lenskart’s biggest advantages lies in its vertical integration. Unlike many eyewear retailers who rely on third-party manufacturers, Lenskart manages its entire value chain—from product design and manufacturing to retail distribution. This not only ensures tighter quality control but also protects profit margins by reducing dependency on external suppliers.
The brand’s international expansion has further enhanced its scale and credibility. Lenskart has established a growing presence in the Middle East and Southeast Asia, catering to diverse customer bases and learning from global retail trends.
Lenskart’s strength also lies in its commitment to technology and brand building. The company has heavily invested in cloud infrastructure, artificial intelligence, and data analytics to personalize recommendations and improve inventory management. Meanwhile, its distinctive marketing campaigns and influencer partnerships have helped position Lenskart as a youthful, tech-forward brand.
By combining innovation, affordability, and convenience, Lenskart continues to redefine the eyewear shopping experience in India and beyond.
4.3 Financial Performance
Lenskart’s recent financial performance underscores its strong growth trajectory and improving profitability. For FY25, the company reported revenue of approximately ₹6,652.5 crore, marking a 22.6% increase from ₹5,427 crore in FY24. More importantly, the brand turned profitable, recording a net profit of ₹297.34 crore in FY25 compared to a loss of ₹10.15 crore in FY24.
Operational efficiency has also improved, with EBITDA margins rising to 14.6% in FY25 from 12.38% in FY24. This reflects better cost management and stronger economies of scale as the company continues to expand. Furthermore, Return on Capital Employed (RoCE) improved dramatically—from negative in FY23 to 13.84% in FY25, signaling enhanced capital efficiency and a healthier balance sheet.
What this means: Lenskart’s numbers tell a compelling story of turnaround and resilience. With sustained revenue growth, a clear path to profitability, and improving margins, the company is transitioning from a high-growth startup to a stable, scalable business. If these financial trends continue, Lenskart could solidify its leadership in the eyewear segment and emerge as a globally recognized Indian consumer brand.
5. Risks & Red Flags
While the company’s growth story and strong market presence paint an attractive picture, investors must also weigh the potential downsides. Every IPO or equity investment carries its share of uncertainties, and this one is no exception. Below are key risks and red flags that deserve close attention before making an informed decision.
1. Valuation Is Steep
One of the most prominent concerns surrounding this IPO is its rich valuation. At the upper price band, the issue implies a market capitalization of around ₹70,000 crore. When compared to the company’s latest reported net profit of approximately ₹297 crore, the valuation translates into an extremely high price-to-earnings (P/E) multiple — well over 200× by some estimates.
Such lofty valuations suggest that a lot of future growth is already priced into the stock. For long-term investors, this means limited room for error. Any slowdown in earnings or compression in margins could trigger a sharp correction. In simpler terms, even a good business can turn into a poor investment if bought at an inflated price. Hence, valuation risk remains one of the biggest red flags in this IPO.
2. OFS vs. Growth Capital
Another factor raising eyebrows is the structure of the offering. A significant portion — roughly ₹5,128 crore — is part of an Offer for Sale (OFS), where existing shareholders and promoters are offloading their stakes. Only a relatively smaller fraction of the proceeds will go toward fresh capital for expansion or growth initiatives.
This raises a natural question: Why are early investors choosing to exit now? If insiders or private equity backers are selling a large portion of their holdings, it can indicate that much of the expected upside is already captured. While it’s normal for early investors to book profits, a heavy OFS component means that new investors are mostly providing an exit rather than funding the next growth phase. That dynamic can dampen long-term confidence and listing-day enthusiasm.
3. Dependence on Raw Materials and Supply Chain
The company’s cost structure also introduces a layer of operational vulnerability. Raw materials account for 24.5% of total expenses in FY25, and nearly 42% of these purchases are sourced from China. Such heavy dependence on a single geography for inputs creates potential supply-chain risk.
Any disruption in imports — be it due to tariff hikes, changes in Chinese export policy, or global shipping bottlenecks — could directly squeeze margins. Additionally, currency fluctuations between the Indian rupee and the Chinese yuan might further affect input costs. Investors should therefore consider the firm’s ability to diversify suppliers and build local sourcing alternatives as part of its long-term resilience plan.
4. Audit Control Remarks & Legal Issues
Corporate governance and internal controls are integral to sustaining investor trust. The company’s auditor recently highlighted a gap in the inventory management system, noting that it “lacked an edit log (audit trail) facility” during FY25. This means any changes to inventory data might not be fully traceable — a red flag for internal oversight.
Moreover, the company faces pending tax and GST litigations, including an income tax dispute of about ₹19.22 crore and a GST/customs issue worth approximately ₹13.7 crore. While these amounts may not be material relative to total revenue, they signal potential compliance and governance challenges. For investors prioritizing transparency and accounting discipline, these issues merit attention.
5. Aggressive Expansion Increases Burden
Rapid expansion is exciting but also capital intensive. The company’s plan to open new stores aggressively could strain profitability if same-store sales growth fails to keep pace. Transitioning from a franchise model to company-owned outlets increases fixed costs, including rent, employee expenses, and inventory management.
If market conditions weaken or consumer demand slows, these high overheads can quickly erode margins. Managing growth sustainably — balancing ambition with profitability — will be crucial for the company’s long-term success.
Final Take
Every investment story has two sides, and recognizing the risks and red flags is vital to forming a balanced perspective. While the company boasts a strong brand and growth prospects, factors like high valuation, insider selling, supply-chain exposure, governance lapses, and expansion pressure could weigh on near-term performance. Prudent investors should analyze these concerns alongside the positives before committing capital.
6. Valuation & Listing Outlook
When evaluating the upcoming IPO, investors need to balance the short-term listing excitement with the long-term fundamentals. While the grey market premium (GMP) and strong subscription data suggest solid debut momentum, valuations appear quite stretched compared to peers in the consumer retail segment.
Listing Gains
Given the strong GMP trends and healthy oversubscription across categories, retail investors could potentially see ~15–25% listing gains on the listing day. This is based on current market enthusiasm and the stock’s expected premium over its issue price. However, these initial pops are often sentiment-driven rather than reflective of intrinsic value. Investors should remember that listing gains are not guaranteed and can quickly evaporate if broader market sentiment turns weak or if the company’s early financial results disappoint.
Short-term traders may benefit from volatility, but long-term wealth creation depends on consistent earnings growth and margin expansion — not just a strong debut. Hence, those entering purely for listing gains should consider booking profits early and re-enter later if valuations normalize.
Long-Term Valuation
Looking beyond the listing buzz, the company’s valuation appears rich. Based on FY25 estimated profit of ₹297 crore, and at the upper price band of ₹402 per share, the post-issue market capitalization is projected to be around ₹70,000 crore. This implies a price-to-earnings (P/E) multiple of roughly 235× (₹70,000 ÷ ₹297).
To put this into perspective, established consumer and retail giants in India generally trade at 30–50× earnings, even with steady growth and strong brand equity. A P/E multiple of over 200× suggests that the market is already pricing in aggressive growth assumptions — including higher margins, rapid market share gains, and flawless execution over the next few years.
While the company’s business model and expansion potential may justify some premium, any slowdown in growth, rising costs, or competitive pressure could sharply impact valuations. At such levels, even minor execution misses could lead to significant stock price corrections.
Verdict on Valuation: The IPO’s pricing reflects high optimism and assumes sustained hyper-growth. While short-term listing gains appear likely, long-term investors should tread cautiously. Unless the company delivers on its ambitious projections, the stock’s lofty valuation could face downward pressure once the market focuses on fundamentals.
7. Should You Subscribe? My Opinion
As India’s eyewear industry gains momentum, the Lenskart IPO has naturally captured investor attention. The brand has built a strong presence with its omni-channel model — seamlessly integrating online convenience with offline accessibility. But the big question remains: Should you subscribe to the Lenskart IPO? Here’s my balanced take, putting all the pieces together.
Subscribe if you believe in the long-term vision
Lenskart’s story is one of innovation, scale, and ambition. Subscribe if you believe in the company’s 10+ year vision and are comfortable taking on a high-risk, high-reward bet. The eyewear sector in India remains underpenetrated, giving Lenskart a long runway for growth.
If you’re a long-term investor who values consistent growth and market leadership over quick listing gains, this IPO could be worth considering. Yes, the valuation is high, but strong revenue growth, improved profitability, and potential international expansion could justify it over time.
Be cautious if you prefer short-term or low-risk plays
On the flip side, exercise caution if you’re looking for quick returns or can’t tolerate volatility. The IPO’s aggressive valuation leaves little margin for error, especially if near-term results fall short of market expectations.
Investors focusing solely on GMP (grey market premium) or hype should step back and assess fundamentals. Lenskart’s business depends heavily on efficient supply chain management, store expansion, and customer acquisition — all areas that come with execution risk. Those seeking steady, conservative returns may find safer opportunities elsewhere.
My final verdict
In summary, the Lenskart IPO is attractive from a long-term growth perspective. India’s eyewear market is expanding, and Lenskart’s omni-channel model positions it well to dominate this space. The company’s recent shift toward profitability adds credibility to its growth story.
However, valuation remains a concern. The stock may not deliver substantial listing gains, and short-term volatility is likely. Personally, I’d subscribe at a conservative level, treating it as a medium-to-long-term investment rather than a speculative flip.
If you believe in the brand’s mission, market potential, and leadership execution, subscribing could be worthwhile — just be mindful of the risks and size your investment accordingly.
8. FAQs
Q1: What is the minimum amount I need to invest?
A: Minimum lot size is 37 shares. At the upper band of ₹402, that’s ~₹14,874.
Q2: When will shares be allotted and listed?
A: The allotment is expected ~6 November 2025, and listing likely around ~10 November 2025 on the BSE and NSE.
Q3: Can I rely on GMP to make a decision?
A: GMP is an indicator of sentiment, but it is not a guarantee. It can fluctuate, sometimes rapidly. Use it as one input among many.
Q4: What happens if the issue is heavily oversubscribed?
A: Heavy oversubscription (as is happening) means allocation might be small for retail investors. It doesn’t necessarily guarantee listing gains, but can increase chances.
Q5: What are the key risks I should monitor post-listing?
A: Keep a watch on (i) store expansion costs vs returns, (ii) margin trajectory, (iii) supply-chain disruptions/import dependencies, (iv) competitive pressure, (v) governance/reporting issues.
9. Conclusion
The Lenskart IPO presents a high-potential but also high-risk proposition. On the plus side: an under-penetrated market, strong omni-channel brand, recent profitable turnaround, and solid subscription interest. On the flip side: a hefty valuation premium, supply-chain and expansion execution risks, and governance/operational red flags.
For discerning investors: this is not a “no-brainer” IPO at the expected price band, but is certainly a compelling candidate if you believe in the long-term story and are comfortable with volatility. For more conservative investors, moderation in application size or waiting to see post‐listing performance may be prudent.
In short: Yes – you may subscribe, but with eyes wide open. Make application size manageable, treat this as a multi-year holding, and set realistic expectations.
10. Sources
- “Lenskart IPO opens Oct 31; sets price band at ₹382-402” – Business Standard.
- “Lenskart IPO – Key details, strengths & risks” – INDmoney.
- “Lenskart IPO: Issue Size, Price Band, Subscription & Listing Date” – Financial Express.
- “Lenskart IPO opens Oct 31: Rs 7,278 crore issue” – The Economic Times.
- “Lenskart CEO and business model” – LiveMint.
- Subscription stats Day 1 and Day 2 – Moneycontrol/BajajFinserv.
- Background and market context – India Today.
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