Lenskart IPO: Issue Oversubscribed 1.68X On Day 2 So Far

Update | November 3, 19:07 IST

Lenskart’s IPO ended Day 2 with an oversubscription of 2.02X, receiving bids for 20.11 Cr shares against 9.98 Cr shares on offer.

Retail investors oversubscribed their quota by 3.33X, bidding for 6.02 Cr shares against 1.81 Cr shares on offer. They were followed by non-institutional investors (NIIs), with 1.89X subscription. The NIIs placed bids for 5.11 Cr shares against 2.71 Cr shares reserved for them.

Qualified institutional buyers’ (QIBs) portion was oversubscribed 1.64X, receiving bids for 8.87 Cr shares against 5.42 Cr shares available for them. In this, foreign institutional investors (FIIs) were the most active investors, bidding for 5.89 Cr shares, while mutual funds placed bids for 43.99 Lakh shares.

Lenskart’s employees also maintained bullishness over the company’s public offering, placing bids for 10.26 Lakh shares against 3.92 Lakh earmarked for them. This resulted in an oversubscription of 2.62X.

Original | November 3, 13:51 IST

LensKart’s IPO continued to see strong investor interest during the early hours of bidding on the second day. The public issue was subscribed 1.68X as of 13:18 IST, receiving cumulative bids for 16.80 Cr shares as against 9.98 Cr shares on offer.

Retail investors continued to lead the fray on Day 2, with their quota oversubscribed 2.77X. These investors placed bids for 5 Cr shares against 1.81 Cr shares earmarked for them.

The portion reserved for Lenskart’s employees was oversubscribed 2.23X, receiving bids for 8.72 Lakh shares against 3.92 Lakh shares reserved for them. 

Meanwhile, QIBs maintained a strong interest in the public issue, oversubscribing their quota 1.49X. They placed bids for 8.06 Cr shares against 5.42 Cr shares on offer. 

NIIs quota was oversubscribed 1.34X. They placed bids for 3.64 Cr shares against 2.71 Cr shares earmarked for them. In this, investors with bid amounts up to INR 10 Lakh led with an oversubscription of 1.80X of their quota.

After filing its DRHP earlier this year, Lenskart filed its RHP for its $8 Bn IPO on October 25. The IPO comprises a fresh issue of up to INR 2,150 Cr and an OFS component of 12.76 Cr shares. 

The company plans to utilise a large chunk of the fresh capital to expand its offline play, along with investments in international expansion.

At the upper end of its price band of INR 382 to INR 402, the company’s price to earning (P/E) ratio stands at 237X. The high P/E ratio also led to a lot of debate on social media. 

On the financial front, the 15-year old company turned profitable in FY25 only. It posted a net profit of INR 297 Cr during the year as against a loss of INR 10.1 Cr in FY24. Operating revenue grew 23% YoY to INR 6,652.5 Cr in FY25. 

It maintained profitability in Q1, posting a profit of INR 61.2 Cr. Top line zoomed 25% YoY to INR 1,894.5 Cr. 

In its IPO note on Lenskart, brokerage firm SBI Securities noted that the company’s valuation seems to be stretched and hence listing gains seem to be unlikely. 

However, looking at its recent growth, the brokerage believes that Lenskart is well placed to encash on the fast-growing domestic organised underpenetrated eyeglasses market. 

“Moreover, as business scales up, there is scope of improvement in profitability over the medium to long term. Listed international peers have robust margin profiles and going forward, the street will keenly track the path to profitability for Lenskart too,” it said.

Like SBI Securities, ICICI Securities also assigned a ‘Subscribe’ rating to the company’s IPO with a long-term view. The brokerage is bullish on the company’s offline expansion in India and international market expansion.

“The unorganised dominance and lower usage of eyewear products in India compared to other countries create a significant opportunity for branded players like Lenskart to increase their market share domestically,” it said.