Lenskart IPO Day 3 Highlights: Issue booked 28.26x so far on final day; GMP dips sharply — Should you apply?

Lenskart IPO GMP dipped further to ₹53 today as per market sources. This means Lenskart shares are trading ₹53 above the issue price of ₹402. At the prevailing GMP, Lenskart IPO listing could occur at ₹455, a premium of 13.18%.

Lenskart IPO was subscribed 28.26 times on the final day of the bidding process today. Here's how different quotas were booked:

QIB: 40.35x

NII: 18.23x

Retail: 7.53x

Employee: 4.96x

Considering the Annualised EPS – June 2025 of ₹1.41 on a post issue basis, the company is set to list at a P/E of approximately ~285x with a market cap of ₹69,741 Cr. There are no listed companies in India which operate in a similar business model as that of the company.

We assign “Subscribe (With Caution)” rating to this IPO as the company the largest seller of prescription eyeglasses in terms of volumes sold in India in FY25. However, the IPO is richly priced and company will have to continue growing its business at high growth rate in order to justify its valuation which keeps us cautious from a long-term perspective.

QIB: Not less than 75.00% of the Offer

NII (HNI): Not more than 15.00% of the Net Issue

Retail: Not more than 10.00% of the Offer

The IPO saw an overwhelming rush from investors across the board, pulling in bids worth ₹27,494 crore for 9.97 crore shares on offer, an overall subscription of 6.86 times. Qualified Institutional Buyers subscribed 6.5 times, Non-Institutional Investors 8.6 times, and retail investors 5.37 times, while anchors had already taken up their full quota of ₹3,268 crore. Even employees showed strong participation, subscribing 3.9 times to their portion.

That said, while the numbers look stellar on paper, such heavy oversubscription often reflects short-term market excitement rather than deep conviction in the company’s fundamentals.

— Gaurav Garg, Research Analyst at Lemonn Markets Desk

Lenskart Solutions Limited reported significant growth, with revenue for FY25 reaching ₹6,652.5 crore, marking a substantial increase from the previous fiscal year. The company achieved a major financial turnaround, moving from a net loss in FY24 to a net profit of ₹295.6 crore in FY25.

Lenskart posted an EBITDA of ₹971.1 crore in FY25, with an EBITDA margin of 14.7%, supported by strong sales growth and improved operational efficiencies.

• Increase penetration in existing markets, enter new markets/geographies, and expand customer access across channels.

• Strengthen manufacturing and supply chain capabilities by reducing dependency on imported raw materials & expanding manufacturing capacities.

• Continue to innovate and expand product portfolio.

A portion of the company’s retail stores are owned or operated through franchise agreements with third-party entities. As of June 2025, the company operated 472 franchise stores globally, representing approximately 22% of its total retail store network.

Under these franchise agreements, the company provides franchisees with the right to use its brand name and intellectual property (including trademarks, designs, and patents), as well as marketing support, in return for a fixed one-time license fee.

However, the company does not have complete operational or financial control over the actions of its franchisees. As a result, there is a risk that franchisees may take actions inconsistent with the company’s brand standards, operational policies, or strategic objectives.

Lenskart reported a profit of Rs. 297 Cr on revenue of Rs. 6,652 Cr in FY25, but this includes a one-time gain of Rs. 167 Cr related to the Owndays acquisition. After adjusting for this, the normalized profit drops to around Rs. 130 Cr, implying a modest 1.96% net margin compared to the reported 4.24%. In Q1 FY26, the company reported Rs. 55.6 Cr profit on Rs. 1,940 Cr revenue, translating to a 2.8% margin which is slightly better, but still thin given its high valuation.

At the proposed valuation of Rs. 69,726 Cr, Lenskart trades at around 535× its normalized FY25 earnings, which looks difficult to justify. Revenue growth has already slowed to 17% in FY25 from 46% a year ago, while operating expenses remain high. Despite maintaining strong gross margins of nearly 70%, its profitability is constrained by high costs related to store expansion, marketing, and logistics. A large portion of the IPO also involves existing investors selling their shares, which may signal limited short-term confidence. Given these factors, we may witness a post-IPO correction in Lenskart’s share price as valuations appear stretched relative to its earnings profile.

In contrast, Groww operates an asset-light, fully digital business model with minimal incremental costs and high scalability. Its platform can handle rising user volumes without proportionate spending, unlike Lenskart’s capital-heavy retail model, which requires continuous investments in new stores and inventory. However, Groww faces its own set of risks such as over 84% of its revenue comes from broking, making it vulnerable to market volatility and retail investor sentiment. Regulatory tightening by SEBI, especially around F&O trading, could also impact its growth.

Yet, Groww’s long-term prospects remain strong. It commands a 26% market share with 1.29 Cr active clients and Rs. 2.6 lakh Cr in customer assets. With increasing digital adoption and low demat penetration in India, Groww stands to benefit from structural tailwinds. Lenskart, meanwhile, operates in a more mature retail category where most of the market is unorganized, and sustaining growth will require innovation, cost discipline, and brand strength.

— Views by Abhinav Tiwari, Research Analyst at Bonanza

Lenskart IPO was subscribed 5.65 times so far on the final day of the bidding process today. Here's how different quotas were booked:

QIB: 4.58x

NII: 8.10x

Retail: 5.22x

Employee: 3.82x

A look at the selling shareholders in Lenskart IPO, along with the quantum being sold and average cost of acquisition:

Lenskart targets different customer categories through a portfolio of brands and sub-brands that include premium collections through John Jacobs and Owndays, and economy & affordable premium collections through Lenskart Air, Vincent Chase, hustlr, and Hooper Kids.

As of FY25, the price points for the company’s prescription eyeglasses ranged from ₹399 to ₹41,199 in India and from USD 48.4 (~ ₹4,270) to USD 670.1 (~ ₹59,140) internationally.

Additionally, the company offered over 79,000 SKUs across its frames portfolio in India, spanning the economy, affordable premium, and premium categories.

Lenskart is India’s largest and among the top two players in Asia in the organized retail segment for prescription eyeglasses, in terms of B2C eyeglasses sales volumes. The company has demonstrated significant growth over the years in both financial and operational metrics. It is broadening its presence in the rapidly expanding Indian eyewear market.

At the upper band of ₹402, the IPO is valued at FY25 EV/Sales and EV/EBITDA multiples of 10.1x and 68.7x, respectively, based on post-issue capital. Valuation of Lenskart seems to be stretched, and hence listing gains are likely to be muted.

However, looking at the robust business model, the company is well placed to capitalize on the fast-growing, underpenetrated domestic organized eyeglasses market. Moreover, as the business scales up, there is scope for improvement in profitability over the medium to long term.

Listed international peers have a robust margin profile, and going forward, the Street will keenly track the path to profitability for Lenskart too. As per the historical track record, the company has consistently improved its reported EBITDA margin (from 7.0% in FY23 to 14.7% in FY25), and incremental improvement will be closely monitored by investors.

We recommend investors SUBSCRIBE to the IPO for the long term at the cut-off price.

Lenskart is India’s largest seller of prescription eyeglasses by volume in FY25. It launched its own brand portfolio with 105 in-house collections in FY25.

The company boasts of a strong omnichannel network with 2,723 stores and over 100 million app downloads. It has a centralised and tech-enabled supply chain with quick delivery capabilities.

It also has an international presence across Asia, including Singapore, the UAE, and Japan.

Basis of Allotment: 06-Nov-2025

Refunds / Unblocking of ASBA Funds: 07-Nov-2025

Credit of Shares to Demat A/c: 07-Nov-2025

Listing Date: 10-Nov-2025

Aggressive Valuation: P/E > 200x and EV/Sales ~10x make the IPO valuation extremely demanding, with minimal margin for error.

Profit Quality Concern: FY25 profit of ₹297 crore largely stems from a one-time, non-cash accounting gain.

Strong Growth Potential: Targeting India’s vast, under-penetrated eyewear market positions Lenskart for long-term expansion.

Investor Confidence: Entry of veteran investor Radhakishan Damani adds credibility and market confidence.

Investment View: Solid business fundamentals, but stretched valuations lead to a Neutral rating on the IPO.

Lenskart IPO was subscribed 2.35 times so far on the final day of the bidding process today. Here's how different quotas were booked:

QIB: 1.64x

NII: 2.80x

Retail: 3.77x

Employee: 2.93x

In the pre-IPO funding round, SBI Mutual Fund invested ₹100 crore in Lenskart, while Radhakishan Damani, founder of Avenue Supermarts (DMart), invested around ₹90 crore.

Lenskart IPO kicked off for the last and final day of bidding on Tuesday. Investors can apply for Lenskart IPO till 5 pm today. At the end of the second day, all segments were booked and the issue was subscribed 2.02x.

Religare Broking has a ‘Neutral’ rating on Lenskart IPO as it appears slightly overvalued at a pre-IPO P/E of 227.2x, which is above that of traditional retail peers.

“The valuation reflects strong expectations of future growth and margin expansion rather than current earnings. Based on present financials, a fair P/E range of 40–60x would be more justified, balancing the company’s solid fundamentals with the risks associated with such premium pricing,” the brokerage added.

Lenskart IPO GMP has seen a sharp drop to ₹59 from ₹85 a day earlier. At the current GMP and upper end of the price band of ₹402, Lenskart IPO shares could list at ₹461, a premium of 14.7%. The highest GMP for Lenskart at one point was ₹108.