Lenskart IPO: Lenskart’s IPO has been a topic of discussion among investors for the last few days due to its high valuation. Its founder Piyush Bansal was also accused of manipulation in valuation. Many fininfluencers also advised investors to stay away from this IPO. But the response this IPO has received from investors has rejected all kinds of allegations. In fact, investors have subscribed this issue of Rs 7,278 crore 28 times more. The company was to issue only 9.97 crore shares, but bids have come for 281 crore shares. The total bid amount has reached more than Rs 1 lakh crore.
These figures mean that the company saw many times more demand than what was expected. The share price was fixed at Rs 382 to Rs 402 per share, and investors at the upper price band placed bids worth about Rs 1.1 lakh crore. It is expected that the allotment of Lenskart shares will take place on 6th November. The probable date of listing is November 10.
The biggest force behind this tremendous success was institutional investors. Big foreign and domestic funds participated enthusiastically in this IPO and their shares were subscribed about 40 times. Although some analysts had warned that the company’s valuation was too high and there was no possibility of much profit after listing, investors remained confident in Lenskart’s long-term growth story.
Anchor investors invested money for this reason
The company’s anchor investors had already attracted many big mutual funds and global investors. Even before this, there had been indications in the market that the trend towards IPO would be very strong. Lenskart has become the leader in India’s organized glasses market, and there is still huge potential for growth in this sector. Apart from this, the company is also expanding its presence abroad (especially in the Middle East and South-East Asia), which has further strengthened investor confidence.
High net worth investors (HNI) and general investors were also attracted towards this IPO. The HNI category subscribed about 18 times in its category, while retail investors also bid about 7 times. This means that even small investors are showing confidence in this brand, even if the share price seems high.
Discussions regarding high valuation still hot
In FY25, the company had shown a profit of Rs 297 crore on revenue of about Rs 6,652 crore, but a large part of this was the result of one-time gain from the purchase of Japanese brand Owndays. If we exclude this profit, the real profit of the company is around Rs 130 crore, due to which its profit margin becomes quite low.
What is the latest GMP of Lenskart?
Talking about gray market premium, it is ₹39 on 5th November. If its listing is done accordingly, then investors can get a profit of 9.70 percent on the very first day. On November 4, GMP was Rs 58. It was Rs 70 on November 3, while it was Rs 94 on November 1. It is clear that its GMP is decreasing as the listing date approaches. On October 28, Lenskart’s GMP was Rs 109, which was the highest in the last few days.
