Lenskart shares off to a subdued start, list at 3% discount to issue price on Indian stock market

Lenskart IPO listing: Shares of Lenskart Solutions listed at a discount on Monday, November 10, missing market expectations, marking a subdued debut for India's biggest eyewear retailer. Lenskart has become the third IPO in a row that has witnessed a poor listing on Dalal Street in a week.

Lenskart share price got listed at ₹390 on the BSE, a discount of 2.99% to the initial public offering (IPO) price of ₹402. Meanwhile, on the NSE, Lenskart shares debuted at a discount of 1.74% at ₹395.

The listing was below expectations as signalled by the latest grey market premium (GMP), which hinted at an over 2% listing pop. Lenskart IPO GMP today was ₹10, a premium of 2.49%.

“In an industry still fragmented and highly price-sensitive, this IPO looks more sentiment-driven than fundamentally compelling. While subscription numbers look spectacular, investors chasing listing gains may be in for muted returns. The excitement is real — but so are the risks,” Harshal Dasani, Business Head at INVAsset PMS had opined ahead of the listing.

Lenskart IPO Details

Lenskart's lacklustre stock market debut comes amid concerns over the valuations sought by the company, even as the IPO saw a strong subscription of over 28 times.

The ₹7,278-crore IPO got bids for 281,88,45,629 shares against 9,97,61,257 shares on offer, resulting in a 28.26 times bids.

Among the investor categories, the Qualified Institutional Buyers (QIBs) quota fetched 40.35 times subscription. The category for non-institutional investors garnered 18.23 times subscription, while the portion for retail investors attracted 7.54 times subscription.

Lenskart IPO shares were sold in the range of ₹382 to ₹402 apiece, targeting a valuation of ₹69,700 crore at the upper end of the price band.

The IPO was a mix of fresh share sale of ₹2,150 crore and an offer for sale of ₹12.75 crore shares by the promoters and investors of the company.

Lenskart intends to utilise the proceeds from the fresh issue to fund several strategic initiatives, including capital expenditure for establishing new company-owned and company-operated (CoCo) stores across India, as well as payments related to lease, rent, and license agreements for these outlets.

Additionally, the company plans to invest in technology and cloud infrastructure, brand marketing, and promotional activities to strengthen brand visibility. The proceeds may also be used for potential inorganic acquisitions and other general corporate purposes.

Founded in 2008, Lenskart is one of India's largest omni-channel eyewear retailers, offers a wide range of prescription eyeglasses, sunglasses, and contact lenses. The company has a presence across metro, tier-1, and tier-2 cities, as well as international operations in Southeast Asia and the Middle East.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Avendus Capital, Citigroup Global Markets India, Axis Capital and Intensive Fiscal Services acted as the book-running lead managers to the offer.

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