Lenskart Set for Stock Market Debut with Muted Grey Market Premium
Lenskart Solutions is set to list on the stock market following its Rs 7,278 crore IPO. The grey market premium has plummeted from 108.00 to 6.50, indicating a potential modest premium over the issue price of Rs 402. Despite this, the IPO was oversubscribed 28.30 times overall, with QIBs subscribing 45 times. Lenskart's FY25 projections show revenue of Rs 6,653 crore with a 32% CAGR and improved profitability. Analysts remain optimistic about long-term prospects despite expectations of muted listing gains due to stretched valuations.
*this image is generated using AI for illustrative purposes only.
Lenskart Solutions , the popular eyewear retailer, is poised to make its stock market debut on Monday following its substantial Rs 7,278 crore Initial Public Offering (IPO). However, the grey market is signaling a tepid start for the company's shares.
Grey Market Premium Plummets
The grey market premium for Lenskart shares has seen a dramatic decline:
| Metric | Value |
|---|---|
| Initial Grey Market Premium | 108.00 |
| Current Grey Market Premium | 6.50 |
| Decline Percentage | 94.00% |
| Expected Premium over Issue Price | 1.60% |
This sharp drop suggests that the stock might open with only a modest premium over its issue price of Rs 402.
IPO Subscription Details
Despite the muted grey market sentiment, Lenskart's IPO received an overwhelming response:
| Category | Subscription Rate |
|---|---|
| Overall | 28.30 times |
| Qualified Institutional Buyers | 45.00 times |
Valuation Metrics
At the upper price band, Lenskart's valuation stands at:
| Metric | Value |
|---|---|
| FY25 EV/Sales | 10.10x |
| FY25 EV/EBITDA | 68.70x |
Company Performance
Lenskart has shown strong growth and improving profitability:
| Metric | FY23 | FY25 (Projected) |
|---|---|---|
| Revenue | - | 6,653.00 crore |
| Revenue CAGR (2-year) | - | 32.00% |
| EBITDA Margin | 7.00% | 14.70% |
| PAT | -64.00 crore (Loss) | 297.00 crore (Profit) |
The company operates over 2,700 stores globally, including 2,000 in India.
Analyst Outlook
While analysts expect muted listing gains due to stretched valuations, they remain optimistic about Lenskart's long-term prospects. The company's omnichannel model and strong position in India's eyewear market are seen as key strengths.
Investors should note that while the IPO received strong interest, particularly from institutional buyers, the current grey market premium suggests a cautious opening. As always, it's advisable to consider both short-term market sentiment and long-term growth prospects when making investment decisions.
Historical Stock Returns for Lenskart Solutions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.67% | -1.68% | +1.82% | +1.82% | +1.82% | +1.82% |
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