Eyewear company Lenskart's shares made a discounted entry into the domestic stock. Market today, much to the dismay of investors who had subscribed to its Initial Public Offering (IPO) with considerable enthusiasm. The company had issued its shares at a price of ₹402 per share. However, the stock listed at ₹390. 00 on the Bombay Stock Exchange (BSE) and ₹395. 00 on the National Stock Exchange (NSE), while this listing price represented a discount of approximately 3% and 1. 7% respectively from the issue price, meaning IPO investors didn't receive any listing gains and instead saw an immediate erosion of their capital.
Fluctuating Grey Market Premium and Investor Response
Despite the disappointing listing, Lenskart's IPO had received a strong response from investors, being oversubscribed by more than 28 times overall. The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 40, while 36 times (excluding anchor investors), while the Non-Institutional Investors (NIIs) portion saw an 18. 23 times subscription. Retail investors subscribed 7, while 56 times, and the employee portion was subscribed 4. 96 times. However, the grey market premium (GMP) had hinted at a weaker listing. A few days before the IPO opened, the GMP was around 27% of the upper price band, but it gradually fluctuated and dropped to about 2. 5% just before the listing. Market experts suggest that listing gains are ultimately determined by market sentiment, company fundamentals, and financial performance on the day of listing, rather than solely by the grey market premium, while
Significant Losses for IPO Allottees
The woes for Lenskart's IPO investors didn't end with the discounted listing. The share price continued to decline, further impacting those who had invested.
On the BSE, the stock fell to ₹355, while 70, which means IPO investors are now facing a loss of 11. 52% on their investment from the issue price, while this situation is particularly disheartening for investors who were encouraged by the strong subscription figures. Employees, however, experienced a slightly lesser impact from this decline as they received a discount of ₹19 per share, making their effective purchase price ₹383 per share, while
Utilization of IPO Proceeds
Lenskart Solutions' ₹7,278. 76 crore IPO was open for subscription from October 31 to November 4. The IPO comprised a fresh issue of shares worth ₹2,150. 74 crore, in addition to an Offer For Sale (OFS) of 12,75,62,573 shares with a face value of ₹2 each, while the proceeds from the Offer For Sale will go to the selling founder shareholders, including Softbank and Temasek. The funds raised through the fresh issue of shares are earmarked for the company's expansion plans and operational enhancements.
Investment in Expansion and Technology
Out of the ₹2,150. 74 crore raised from the fresh issue, Lenskart plans to allocate ₹272. 62 crore towards establishing new Coco stores. On top of that, ₹591. 44 crore has been designated for lease/rent/license agreements for Coco stores, which is a strategic move to strengthen the company's retail footprint, while a significant portion, ₹213. 38 crore, will be invested in technology and cloud infrastructure, aiming to enhance the company's digital capabilities and improve the overall customer experience, while these investments are crucial for Lenskart to maintain its competitive edge and innovate in the rapidly evolving eyewear market.
Marketing and General Corporate Purposes
The company also intends to make substantial investments in marketing activities to bolster its brand recognition and market reach, with a budget of ₹320. 06 crore allocated for this purpose.
The remaining funds will be utilized for acquisitions and general corporate purposes, enabling the company to capitalize on future strategic growth opportunities. This comprehensive allocation of funds is designed to support Lenskart's long-term growth trajectory and profitability, ensuring sustained development across its various business segments.
Lenskart's Business Overview and Financial Health
Founded in 2008, Lenskart is a prominent eyewear. Company with a strong presence across metro, Tier-1, and Tier-2 cities in India. Its operations also extend to Southeast Asia and the Middle East. As per figures up to March 2025, the company boasts 2,067 stores in India and 656 stores internationally, while lenskart offers remote eye testing services through 136 optometrists across 168 stores, both in India and overseas locations like Japan and Thailand. Its manufacturing facilities are located in Bhiwadi and Gurugram, complemented by regional facilities in Singapore and UAE. The company provides next-day delivery in 40 Indian cities and three-day delivery in 69 cities, showcasing its strong logistics network.
Improving Financial Performance
Lenskart's financial health has shown consistent improvement over the years. In Fiscal Year 2023, the company reported a net loss of ₹63. 76 crore, which Importantly reduced to ₹10, while 15 crore in the subsequent Fiscal Year 2024, indicating enhanced operational efficiency. Fiscal Year 2025 marked a pivotal turnaround, with the company achieving a net profit of ₹297. 34 crore, signaling its strong growth and return to profitability. During this period, the company's total income grew at a. Compounded annual growth rate (CAGR) of over 33%, reaching ₹7,009. 28 crore. For the first quarter of the current fiscal year 2026 (April-June 2025), Lenskart has already reported a net profit of ₹61. 17 crore and a total income of ₹1,946, while 10 crore, continuing its positive financial trajectory. As of June 2025, the company had a debt of ₹335.
48 crore, while its reserves and surplus stood at a healthy ₹5,855. 43 crore, underscoring its strong balance sheet.
