Lenskart IPO Opens with Lukewarm Response on Day One
Lenskart Solution Ltd.'s Rs 7,278.02 crore IPO received a subscription rate of 0.01 times on its first day. The eyewear retailer's offering includes a fresh issue of Rs 2,150 crore and an offer-for-sale of Rs 5,128.02 crore. The price band is set at Rs 382-402 per share. Despite the tepid initial response, the grey market premium of Rs 74 per share suggests positive investor sentiment. Lenskart's financials show revenue growth from Rs 5,428 crore in FY24 to Rs 6,652 crore in FY25, with a shift from a loss to a profit of Rs 297.30 crore.
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Lenskart Solution Ltd., a prominent eyewear retailer, launched its Initial Public Offering (IPO) with a tepid response from investors on the first day. The Rs 7,278.02 crore IPO saw a subscription rate of just 0.01 times, indicating a cautious approach from market participants.
IPO Details
| Particulars | Details |
|---|---|
| Total IPO Size | Rs 7,278.02 crore |
| Fresh Issue | Rs 2,150 crore |
| Offer-for-Sale | Rs 5,128.02 crore |
| Price Band | Rs 382 - Rs 402 per share |
| Minimum Investment (Retail) | Rs 14,134 for 37 shares |
| Grey Market Premium | Rs 74 per share (18.41% premium) |
Financial Performance
Lenskart has demonstrated strong financial growth and profitability in recent years:
| Fiscal Year | Revenue | Net Profit/Loss |
|---|---|---|
| FY25 | Rs 6,652.00 crore | Rs 297.30 crore (Profit) |
| FY24 | Rs 5,428.00 crore | Rs 10.15 crore (Loss) |
The company's revenue grew by 22.55% year-over-year, while it turned profitable in FY25.
Key Dates
- IPO Allotment: Expected on November 6
- Listing Date: Scheduled for November 10 on NSE and BSE
Market Sentiment
Despite the lukewarm initial response, the grey market premium of Rs 74 per share suggests positive sentiment among investors. This premium indicates an expected listing price approximately 18.41% higher than the issue price.
The slow start to the subscription process is not uncommon for large IPOs, especially in the current market conditions. Investors often take a cautious approach on the first day, assessing market sentiment and waiting for institutional investor participation before making their decisions.
As the IPO progresses, it will be interesting to observe how subscription rates evolve, particularly among different investor categories such as qualified institutional buyers, non-institutional investors, and retail investors.
Potential investors should carefully review the company's financials, growth prospects, and the overall market conditions before making an investment decision. As always, it's advisable to consult with a financial advisor to understand the risks and potential rewards associated with investing in an IPO.
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