Lenskart Solutions, India's largest prescription eyeglasses seller by volume among organized retailers, has concluded its Initial Public Offering (IPO) with robust investor interest. The Rs 7,278.02-crore IPO was oversubscribed 28.26 times on the final day of bidding, showcasing strong market confidence in the company's potential.

Subscription Details

The IPO received an overwhelming response across various investor categories:

Overall, the offering attracted bids for 2,81,88,45,777 shares against the 9,97,61,257 shares available, indicating significant investor enthusiasm.

IPO Structure and Pricing

The Lenskart IPO comprises two components:

1. A fresh issue of Rs 2,150 crore
2. An offer-for-sale (OFS) of Rs 5,128.02 crore

The price band for the IPO was set between Rs 382 to Rs 402 per share.

Key Dates

• Allotment Date: November 6, 2023
• Listing Date: November 10, 2023 (scheduled)
• Listing Venues: BSE and NSE

Grey Market Premium

The grey market premium for Lenskart shares has seen a decline:

• Initial Premium: Rs 95 (as of October 31)
• Current Premium: Rs 45

Based on the current grey market premium, the estimated listing price is around Rs 447 per share. However, it's important to note that grey market premiums are unofficial and subject to change.

About Lenskart

Lenskart has established itself as a prominent player in the eyewear market:

• Largest prescription eyeglasses seller by volume among organized retailers in India
• Operational presence across multiple regions:
  • India
  • Japan
  • Southeast Asia
  • Middle East

The strong investor response to Lenskart's IPO reflects the market's positive outlook on the company's business model and growth prospects in the expanding eyewear market.

Investors and market watchers will be keenly observing Lenskart's performance as it prepares for its stock market debut on November 10, 2023.

Note: IPO investments carry risks, and investors should conduct thorough research and consider their financial goals before making investment decisions.

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.