Lenskart rebounded from a wobbly start to close its stock market debut slightly in the green at ₹404.55 — barely above its ₹402 offer price — after slipping intraday as much as 11% at one point to ₹356.10. BENGALURU: Shares of the parent of eyewear retailer Lenskart listed higher on Indian bourses on Tuesday after an initial public offering that was subscribed to about 28 times and worth ₹72.8 billion, as per exchange data and market participants, fuelled largely by appetite from institutional investors.
Lenskart’s market capitalization at the close was nearly ₹702 billion, suggesting a value near the top end of its indicated range. The shares had opened at ₹395, signalling tentative investor sentiment, though it was partly closed by bargain hunters and investors with a longer time horizon by the close of the session.
Lenskart’s market debut by the numbers and key signals
The sharp bounce into positive territory will be comforting to management after a rocky first hour. The massively oversubscribed IPO may have alerted institutions to the appetite for Lenskart; day-one price discovery might yet hint at a lingering argument: Is Lenskart’s premium multiple sustainable into normalized growth?
According to the prospectus and company disclosures, the proposed valuation is equivalent to about 10 times trailing revenue and approximately 230 times core net profit (excluding one-off gains). That ranks Lenskart among India’s pricier new-age consumer names, with some comparing it to other richly valued listings in recent years. Analyst coverage for several brokers has indicated that consumer-tech IPOs in India can trade at high single-digit to low double-digit revenue multiples, where the growth visibility and brand strength are seen as sustainable.
Revenue in the fiscal year that ended in March rose 23% to ₹66.53 billion, while reported net profit was ₹2.97 billion. A non-cash accounting gain of ₹1.67 billion related to the Owndays acquisition gave a lift to the bottom line; without that, core profit amounted to ₹1.30 billion. Those numbers are part of the reason the stock flipped into negative territory early in Friday’s session as investors weighed growth momentum against valuation.
What investors are betting on with Lenskart’s model
Lenskart’s investment thesis is based on its vertically integrated model — including design, manufacturing, lens labs, logistics and a growing omnichannel footprint — which it believes can deliver quicker product cycles and more control over costs than conventional optical chains. That means the company believes it can scale efficiently in still-underpenetrated markets, and that it has the tailwind of growing vision-care awareness and upgrades in eyewear categories.
That’s not to say competition isn’t fierce at every level of the price spectrum. Titan Eye+ is the leader in premium organised retail, while nimble direct-to-consumer names are giving competition online armed with aggressive pricing. Owndays provides growth optionality through international expansion but risks execution as Lenskart navigates through multiple markets, formats and unit economics.
Management had guided that IPO proceeds would be used to expand stores, strengthen the supply chain, and invest in technology and marketing, with some headroom for targeted acquisitions. In a world where customer acquisition costs can ratchet higher, investors are going to want to see if these investments turn into same-store sales growth, faster inventory turns and expanding gross margins.
Valuation debate and dynamics among Lenskart’s backers
The offer was higher than its valuation estimated at $5 billion, the one made in a secondary sale last year with late-stage backers such as Fidelity and Temasek; Fidelity subsequently marked that stake to about $5.6 billion, according to fund disclosures. The new valuation brings Lenskart closer to the top bands of India’s consumer brands by market cap, a ranking that some portfolio managers said was “expensive but scalable.” An early investor, DSP Asset Managers, stood by the pricing in a public statement defending it but conceding to the premium.
On the sell side, existing shareholders such as SoftBank, Schroders Capital, Premji Invest, Kedaara Capital and Alpha Wave Ventures sold shares along with co-founders Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi. The combination of primary issuance and offers for sale is common among late-stage consumer-tech listings in India as venture investors recycle capital.
Chief Executive Peyush Bansal has said he values long-term market creation above short-term market moves, and that the issue was priced right following meetings with hundreds of institutional investors. The company’s messaging — reach more customers, deepen affordability, move faster than legacy chains — will now be pitted against quarterly delivery.
What to watch next for Lenskart after the market debut
Key metrics to watch out for in the next few quarters: store adds, unit economics in new cities, contribution margin from international and pace of Owndays integration. Any signs of operating leverage gathering again — especially at lens labs and in logistics — could further support the current multiple. Conversely, deceleration in top-line growth or pressure on marketing effectiveness may lead to multiple compression.
Lenskart’s listing lent momentum to India’s pipeline of consumer and fintech IPOs including Groww, Pine Labs, PhysicsWallah, Capillary Technologies and boAt, which are getting ready for a share sale at various stages of preparation. For now, Lenskart’s day-one close above the issue price, despite a relatively vapid open, suggests investors are willing to give the integrated eyewear thesis the benefit of the doubt — as long as it is able to keep pace with expectations.
