Lenskart IPO grey market premium drops amid high valuation concerns ahead of subscription launch, testing investor confidence before listing.
TheInterviewTimes.com | New Delhi | October 30, 2025 — The Lenskart IPO is witnessing a notable cooling in investor sentiment just before its subscription opens. The eyewear retail giant’s Rs 7,278 crore public offering, scheduled from October 31 to November 4, has seen its grey market premium (GMP) plunge from a high of Rs 108 to nearly Rs 46–52 in recent days.
This steep drop signals subdued enthusiasm among retail investors as Lenskart IPO valuations come under scrutiny.
The grey market premium, an informal indicator of investor demand and potential listing gains, now reflects a modest 11–13% upside. With the upper price band fixed at Rs 402, the estimated Lenskart IPO listing price stands between Rs 450 and Rs 454 — significantly below earlier projections.
Analysts suggest this contraction mirrors mounting skepticism about the company’s valuation metrics.
Valuation Worries Cloud the Lenskart IPO Sentiment
A major factor behind the weakening Lenskart IPO enthusiasm is its steep valuation — estimated at around Rs 70,000 crore. The price-to-earnings (P/E) multiple ranges between 230x and 237x, unusually high for a company that reported a profit only recently.
Lenskart recorded a net profit of Rs 297 crore in FY25, marking a turnaround but not enough to justify such aggressive pricing, according to several analysts.
Brokerages including SBI Securities have cautioned investors that the Lenskart IPO “appears stretched on valuation,” potentially limiting listing-day gains. Further controversy emerged when reports surfaced that CEO Peyush Bansal took a Rs 200 crore loan three months before the IPO to buy shares at a valuation nearly nine times lower — around Rs 8,500 crore.
This disparity has triggered debate among retail investors and market experts, including Shankar Sharma, over the fairness of the pricing strategy.
Lenskart IPO Backed by Strong Growth and Expanding Market Reach
Despite short-term valuation fears, market analysts remain cautiously optimistic about Lenskart IPO’s long-term potential. The company has shown marked improvement in operational performance — with EBITDA margins rising from 7% in FY23 to 14.7% in FY25.
This reflects better cost efficiency and scalability in both domestic and international operations.
According to SBI Securities, Lenskart maintains a dominant position as India’s top organized retailer of prescription eyewear by volume. The company operates 2,723 stores globally and aims to add 620 more outlets over the next year.
With India’s eyewear market still largely untapped, the Lenskart IPO is being viewed as an opportunity to invest in a fast-growing consumer tech brand with global ambitions.
Institutional Interest Strengthens Confidence in Lenskart IPO
The Lenskart IPO has also drawn significant institutional attention, providing some cushion against retail market skepticism. SBI Mutual Fund invested Rs 100 crore at the upper end of the price band (Rs 402 per share), while veteran investor Radhakishan Damani made a Rs 90 crore pre-IPO investment.
The offering is managed by major global investment banks, including Kotak Mahindra Capital, Morgan Stanley, and Citigroup, reflecting high institutional confidence in the company’s growth potential. Shares of Lenskart IPO are slated to list on both the BSE and NSE on November 10, 2025. Analysts say the debut performance will serve as a crucial indicator of investor appetite for India’s premium consumer tech IPOs.
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What Lies Ahead for Investors in Lenskart IPO
While the falling grey market premium points to waning near-term enthusiasm, long-term investors still find promise in the Lenskart IPO. The company’s improving profitability, expanding footprint, and strong brand recall in India’s eyewear segment may deliver value over time.
However, valuation risks remain high, and short-term listing gains may be limited. Market experts believe the Lenskart IPO outcome will set the tone for future high-growth tech listings in India’s capital markets.
As the subscription opens, all eyes are on how investors balance immediate valuation concerns against the company’s compelling growth story.