5 months ago
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ARTICLE AD BOX
Lenskart Solutions, India’s largest eyewear retailer, is successful the last time of bidding for its Rs 7,278-crore initial nationalist offering. Interest from investors has been steadfast truthful far. By the extremity of the 2nd day, bids were placed for 20.11 crore shares, compared with the 9.97 crore shares available, taking full subscription to 2.02 times.While the bidding gait has been steady, the IPO’s grey marketplace premium has slipped from astir 21.14% earlier to astir 14.7% now.At present, the GMP stands astatine astir Rs 59 per share, translating to astir a 14.5% premium implicit the precocious extremity of the terms band. This indicates an estimated listing terms of astir Rs 461 if existent trends continue. Meanwhile, enactment from idiosyncratic investors led to the response. Retail Individual Investors subscribed 3.33 times the 1.80 crore shares earmarked for them.
Non-Institutional Investors bid for 1.89 times the 2.71 crore shares connected connection successful their category, portion Qualified Institutional Buyers subscribed 1.64 times the 5.42 crore shares reserved for them, according to BSE data.
What should investors do?
Though the GMP has eased, brokerages stay optimistic astir Lenskart’s prospects, with aggregate firms advising investors to enactment invested for the agelong haul. SBI Securities, according to ET, issued a “Subscribe for Long Term” recommendation, pointing to the firm's beardown marketplace position, integrated proviso chain, improving nett metrics, marque spot and coagulated concern fundamentals.
Ventura Securities has besides fixed a “Subscribe” call, describing Lenskart arsenic a visionary, growth-focused company. It emphasises the retailer’s tech-enabled model, AI-backed lawsuit engagement and businesslike store-level economics, wherever each outlet delivers a payback successful nether a year. Ventura expects profits to turn further arsenic Lenskart expands operations and accelerates its planetary push. Nirmal Bang concurs that the IPO is priced connected the higher side, yet says the valuation is tenable erstwhile compared with different modern retail players, including Trent and Metro Brands.
The brokerage has assigned a “Subscribe with Long-Term View” standing and attributes its optimism to Lenskart’s beardown marque recall, premium merchandise offerings and assertive planetary enlargement plans.
Lenskart IPO
The institution is raising superior done a premix of caller shares and an connection for sale. Of the full contented size, Rs 2,150 crore is being raised done a caller issue. The remaining Rs 5,128 crore comes from existing shareholders selling portion of their stake, including SoftBank, Kedaara Capital and Temasek.
Shares are priced successful a scope of Rs 382–Rs 402 each.At the apical extremity of the pricing, the institution is valued astatine a price-to-earnings ratio of 235x its FY25 net and an EV/EBITDA aggregate of 68x, placing the IPO among the astir costly nationalist listings successful the retail abstraction successful caller years. The funds raised from the caller contented are earmarked for enlargement and maturation initiatives.(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)
