Lenskart IPO fully subscribed on Day 1—will investors still see value at 260x earnings?
At a near- ₹70,000 crore valuation and 260x forward earnings, Lenskart’s IPO has drawn strong demand on the first day—but can the eyewear retailer justify its premium pricing?
MUMBAI: Lenskart’s IPO, which opened for subscription today, is drawing intense scrutiny for its steep valuation of nearly ₹70,000 crore. At 260x its FY26 estimated earnings and 10x FY25 revenue, the eyewear retailer seems to have priced in much of its future growth, analysts said.
A Mint analysis of seven listed consumer-tech peers shows that, in terms of price-to-sales ratio, Lenskart sits squarely in the middle of the pack. Its entry valuation tops FSN E-Commerce Ventures’ (Nykaa) 9x multiple but trails PB Fintech (Policybazaar) and Eternal (formerly Zomato) at around 15x.
Since many of these companies are still loss-making, market capitalization-to-revenue multiple is a useful gauge of what investors are willing to pay relative to sales.
Perhaps, a higher ask isn’t new for India’s tech IPOs. When they hit the markets in 2021, several listed at even steeper valuations: Nykaa at 22x, Paytm at 44x, Policybazaar at 46x, Eternal (Zomato) at 28x, and CarTrade Tech at 26x their respective revenues.
These calculations factor in post-issue market capitalization at the upper price band and the latest full-year consolidated revenue at listing.
The issue was fully subscribed on the first day. As of 5pm, the qualified institutional buyers’ (QIB) portion was subscribed 1.42 times, non-institutional investors (NIIs) 0.41 times, the retail category 1.16 times, and the employee quota 1.10 times.
Lenskart plans to raise ₹7,278 crore, including ₹2,150 crore through a fresh issue. The offer closes on 4 November.
The valuation debate
Opinions on the Street are split on what the eyewear giant’s pricing means for investors. SBI Securities has cautioned that valuations look stretched, suggesting muted listing gains.
Others are more upbeat. “The stock seems fully priced, yet consistent profitability and expansion could still support 20–30% listing gains in the near term," said Nipun Lodha, head of investment banking at PL Capital.
At the top of its ₹382– ₹402 price band, Lenskart will be valued at ₹69,742 crore. To be sure, Fidelity valued the company at $6.1 billion in June, meaning the IPO seeks a roughly 31% higher valuation at nearly $8 billion.
At ₹402 per share, the valuation implies a steep 260x earnings multiple — a rich ask for a 17-year-old company that only turned profitable in FY25.
The hype and the hangover
What drove those lofty tags?
Most of these IPOs landed during a liquidity-fuelled bull run that coincided with the onset of a funding winter in private markets.
“Much of the optimism and high valuations tend to get priced in during private funding rounds," said Anas Rahman Junaid, founder of Hurun India. As firms near listing, early investors, especially those from before the funding winter of 2022, look to cash out at even higher valuations, he noted. "But sometimes public markets might not match that enthusiasm," he added.
Consumer-tech firms, by nature, trade at steep multiples. They sell the promise of strong cash flows driven by tech-led scale, rapid user growth, and operating leverage, an analyst said, requesting anonymity.
But slowing consumption and a tougher macro backdrop have cooled those narratives. “Business has not been booming as promised," the analyst added.
Shifting investor sentiment
After a bruising year for new-age listings, retail investors are more value-conscious. Even Bansal’s business pitch reflects that shift.
Like Trent and Zudio, Lenskart is chasing volume-led growth over margin expansion. The founder has repeatedly positioned the IPO as a long-term bet on scale and affordability, though, as corporate gospel goes, the ultimate test is shareholder value creation.
Still, a grey-market premium of 27% signals healthy retail appetite. Bansal’s celebrity persona from Shark Tank and Lenskart’s own brand popularity is contributing to the hype, noted Sanath Mondal, head of private markets at Sanctum Wealth.
For retail investors, the question is not whether Lenskart is a strong business — it is. The question is whether they’re paying too much for future growth that’s already been priced in.
As the IPO opens, the listing will show if investors are still willing to pay a premium for promise over profits.
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