Lenskart IPO: Ahead of listing, GMP plunges 70%; what analysts are saying

Lenskart IPO: Ahead of its listing connected the banal exhchanges, Lenskart’s grey marketplace premium (GMP) has crashed by a immense 70%, making investors wonderment whether the banal volition database astatine immoderate important gains.The Rs 7,278 crore nationalist offering, amongst 2025's large user assemblage listings, attracted bids exceeding Rs 1 lakh crore, achieving 28.3 times oversubscription. Qualified organization buyers showed peculiar interest, with their conception oversubscribed 45 times, demonstrating robust enactment from home and planetary funds.The non-institutional conception achieved 18 times subscription, whilst retail investors participated astatine 7.5 times, notable fixed the important concern request and valuation considerations.

Exchange information reveals bids for 281 crore shares against 9.97 crore disposable shares, highlighting sustained request contempt marketplace fluctuations.

Lenskart IPO: GMP crashes up of listing

Following beardown IPO participation, the company's grey marketplace premium has dropped from Rs 108 to astir Rs 30. This suggests a humble 8% premium supra the Rs 402 contented price, according to an ET report.The important alteration successful GMP indicates heightened caution amongst unofficial marketplace traders anterior to the listing.

Market observers suggest this reduced enthusiasm stems from concerns implicit valuations and subdued secondary marketplace conditions.Experts, portion optimistic astir Lenskart's halfway concern strengths, caution astir its elevated valuation metrics. According to SBI Securities' analysis, the company's precocious terms set reflects a valuation of 10.1x FY25 EV/Sales and 68.7x EV/EBITDA, calculated connected post-issue capital, suggesting minimal scope for contiguous terms appreciation."Valuation of Lenskart seems stretched and hence listing summation is apt to beryllium muted. However, looking astatine the robust concern model, the institution is good placed to encash connected the fast-growing home organized eyeglasses market," the brokerage was quoted arsenic saying successful the report.The company's operational ratio shows committedness for aboriginal growth. With EBITDA margins improving from 7% successful FY23 to 14.7% successful FY25, marketplace observers volition keenly show this profitability inclination aft the shares statesman trading.Lenskart has attracted important capitalist involvement owed to its extended retail footprint, integrated income approach, and strategical concern successful tech-enabled plan and accumulation facilities. The eyewear institution has established a important beingness with much than 2,700 outlets worldwide, of which 2,000 are located successful India, alongside operations successful Singapore, UAE, and the US.The institution recorded awesome fiscal maturation successful FY25, with revenues expanding astatine 32% CAGR implicit a two-year play to scope Rs 6,653 crore, whilst EBITDA expanded importantly to Rs 971 crore, representing a 3.7-fold increase.

Notably, FY25 marked Lenskart's modulation to profitability, posting a PAT of Rs 297 crore, a important betterment from its Rs 64 crore nonaccomplishment 2 years prior.According to Nirmal Bang's assessment, its "resilient concern model" is reinforced by centralised manufacturing operations and expanding planetary presence. "Lenskart enjoys beardown competitiveness successful the Indian eyewear marketplace by leveraging innovation, technology, and an omnichannel strategy that keeps it cost-efficient successful a fragmented industry," the investigation stated.(Disclaimer: Recommendations and views connected the banal market, different plus classes oregon idiosyncratic concern absorption tips fixed by experts are their own. These opinions bash not correspond the views of The Times of India)