📉 Lenskart IPO GMP Dips on Final Day of Bidding — What Investors Need to Know Before Listing
📉 Lenskart IPO GMP Dips on Final Day of Bidding — What Investors Need to Know Before Listing
New Delhi, November 4, 2025:
The much-awaited Lenskart IPO has seen a notable dip in its Grey Market Premium (GMP) on the final day of public bidding, signaling a cautious sentiment among investors even as overall subscription levels remain steady. Despite strong brand equity and a profitable business model, fluctuations in the grey market suggest investors are reassessing short-term listing gains amid volatile market conditions.
📊 GMP Slips Amid Market Uncertainty
As per market observers, the Lenskart IPO GMP, which was earlier commanding a premium of around ₹80–₹90 per share during the initial bidding days, fell to the range of ₹40–₹45 on the last day of subscription. This decline indicates that grey market participants — who speculate on the likely listing price — have turned slightly cautious, reflecting broader market volatility and muted investor sentiment.
The dip, however, does not necessarily reflect the company’s fundamentals, which remain strong. Analysts note that a softening GMP trend before listing is common for large and high-profile IPOs, especially when institutional demand stabilizes and retail sentiment cools off toward the close of bidding.
💼 Subscription Status and Investor Response
By the end of the third and final day, the Lenskart IPO was subscribed around 6.8 times overall, driven primarily by strong participation from Qualified Institutional Buyers (QIBs). The QIB category was subscribed over 10 times, while the Non-Institutional Investors (NIIs) and Retail Investors categories recorded moderate demand at 4.2x and 2.1x respectively.
The employee quota also witnessed encouraging participation, reflecting confidence within the company’s internal network.
Market experts suggest that while the retail response was somewhat subdued compared to recent IPOs, institutional interest indicates long-term confidence in Lenskart’s growth story.
🏢 Company Background: From Startup to Unicorn
Founded in 2010 by Peyush Bansal, Lenskart has evolved from an online eyewear retailer into one of India’s leading omnichannel optical brands. With over 2,000 stores across India and abroad, the company has become synonymous with affordable, fashionable eyewear and a seamless digital shopping experience.
Lenskart’s strong presence in the Indian market and its expansion in Southeast Asia and the Middle East underscore its global ambitions. Its business model combines technology-driven precision with retail accessibility — enabling customers to experience try-ons online and offline.
💰 Financial Performance and Valuation
The company’s financials have shown robust growth over the past three years. For FY24, Lenskart reported a revenue of ₹3,570 crore, marking a year-on-year growth of over 38%. The firm also achieved improved profitability, supported by strong sales from online and in-store channels.
Its EBITDA margins have expanded to nearly 14%, with consistent improvements in operational efficiency and inventory management. The IPO aims to strengthen the company’s balance sheet, fund expansion plans, and reduce existing liabilities.
The offer, comprising both fresh issue and offer-for-sale (OFS) components, is priced in the range of ₹400–₹425 per share, with a total issue size of approximately ₹6,000 crore.
🌍 Market Position and Competitors
Lenskart stands at the intersection of fashion, health, and technology, serving a fast-growing segment of consumers seeking quality eyewear solutions. It competes with traditional optical players such as Titan Eye+, Lawrence & Mayo, and emerging D2C brands.
However, its edge lies in its hybrid business model — a mix of physical retail, e-commerce, and in-house lens manufacturing. The integration of technology through features like 3D try-ons and home eye tests has helped Lenskart capture a loyal customer base, especially among younger urban consumers.
⚙️ Use of IPO Proceeds
According to the prospectus, the company plans to utilize the IPO proceeds for:
- Business expansion across Tier-II and Tier-III cities.
- Debt repayment and working capital requirements.
- Technology upgrades in supply chain and customer experience systems.
- Brand building and marketing initiatives to strengthen its global footprint.
📉 Why Did the GMP Fall?
The dip in Lenskart’s Grey Market Premium is attributed to a combination of factors:
- Overall market correction in recent sessions affecting investor confidence.
- Profit-booking by early grey market participants ahead of the final day.
- Cautious approach among retail investors given the IPO’s valuation.
- Saturation in IPO activity, with multiple issues competing for investor funds this week.
However, analysts maintain that a lower GMP does not necessarily imply a weak listing. Often, institutional support and post-listing sentiment can override grey market trends if the company’s fundamentals remain intact.
💬 Expert Opinions
Market analysts remain largely optimistic about Lenskart’s long-term prospects despite the short-term dip in grey market buzz.
“Lenskart’s business fundamentals, brand strength, and operational scalability make it a solid long-term play. The fall in GMP is likely a reflection of short-term liquidity shifts, not investor disinterest,”
said a leading market strategist from a Delhi-based brokerage.
Another analyst noted:
“Investors should focus on the company’s ability to scale profitably in international markets and its tech-driven retail innovations, which can sustain valuation premiums over time.”
📈 What to Expect on Listing Day
Given the latest GMP range of ₹40–₹45, Lenskart shares may list at around ₹465–₹470, translating to a 10% listing gain at the upper end of the price band. However, final listing performance will depend on broader market sentiment, institutional inflows, and global cues.
Retail investors are advised to monitor subscription data, anchor investor participation, and post-issue institutional activity before making short-term trade decisions.
