The initial public offering (IPO) of Lenskart Solutions, the popular eyewear retailer, has kicked off with robust investor interest, marking a significant moment in the Indian capital markets.

IPO Subscription Status

The Lenskart IPO was fully subscribed on its first day, demonstrating strong investor appetite. Investors bid for 11.23 crore shares against the 9.97 crore shares on offer, indicating an oversubscription of 1.13 times.

IPO Details

Grey Market Premium

The grey market, often considered an unofficial barometer of investor sentiment, has shown a positive response to the Lenskart IPO:

• Grey Market Premium: ₹85.00
• Estimated Listing Price: ₹487.00 per share
• Expected Gains: 21.14%

This premium suggests that investors are anticipating a strong debut for Lenskart on the stock exchanges.

Anchor Investment

Lenskart has already secured significant interest from institutional investors:

• Amount Raised: ₹3,268.00 crore
• Number of Anchor Investors: 147

This substantial anchor book indicates confidence among large investors in Lenskart's business model and growth prospects.

Valuation Concerns

Despite the strong initial response, some market analysts have raised concerns about Lenskart's valuation:

• Estimated Valuation: ₹70,000.00 crore
• Price-to-Earnings Ratio: 237 times

The high P/E ratio, even with the company turning profitable (net profit of ₹297.00 crore), has led to some skepticism among market observers.

Market Commentary

Veteran investor Shankar Sharma has criticized the current state of India's IPO market, describing it as driven by 'dumb money'. This comment comes in the context of the high valuations being commanded by some recent IPOs, including Lenskart.

Investor Takeaway

While the strong subscription and grey market premium indicate positive sentiment, potential investors should consider:

1. The high valuation and its implications for future returns
2. The company's growth prospects in the competitive eyewear market
3. The overall market conditions and their impact on new listings

As always, it's advisable for investors to thoroughly research and consider their risk appetite before making investment decisions.

The Lenskart IPO represents a significant event in the Indian capital markets, reflecting both the appetite for new-age companies and the ongoing debate about appropriate valuations in the current market environment.

Veteran investor Shankar Sharma has expressed strong reservations about the upcoming Lenskart IPO, labeling it as 'overvalued' and criticizing the broader Indian tech market. The founder of GQuant Investech has stated that he has no interest in participating in Lenskart's initial public offering, citing concerns over the company's valuation metrics.

Valuation Concerns

Sharma pointed out that Lenskart is going public at a valuation of nearly 10 times its revenue. While he acknowledged that this multiple is conservative compared to previous tech IPOs in India, which have traded at 25 to 50 times revenue, he still considers it overvalued. The criticism extends beyond Lenskart to the broader Indian tech IPO market.

IPO Details and Investor Interest

Despite the criticism, Lenskart's IPO has garnered significant interest from institutional investors. Here are the key details:

Criticism of the Indian IPO Market

Sharma didn't mince words in his assessment of the Indian IPO market, describing it as the 'dumbest IPO market in history.' He criticized large institutional investors for hyping overvalued tech IPOs and accused merchant bankers of exploiting retail investor funds.

Broader Implications

The veteran investor's comments raise questions about the sustainability of high valuations in the Indian tech sector and the potential risks for retail investors. It also highlights the ongoing debate about the pricing of tech companies in public markets, especially those that are yet to demonstrate consistent profitability.

While Lenskart has shown strong growth and has disrupted the eyewear market in India, the concerns raised by Sharma and others suggest that potential investors should carefully consider the valuation metrics and long-term prospects of the company before making investment decisions.

As the IPO moves forward, it will be interesting to see how the market responds to these valuation concerns and whether it will impact the success of Lenskart's public offering.