The Initial public offering of Lenskart closed on a strong note on the last day of subscription, while that of Groww witnessed keen interest from retail investors at the end of Day 1 of issue opening on Tuesday.
Groww’s retail edge
Groww’s parent, Billionbrains Garage Ventures’ ₹6,632.3 crore IPO, closed its first day with 57 per cent subscription on Tuesday, driven primarily by retail investors who bid 1.91 times their allocated portion. Non-institutional investors subscribed 0.59 times, while qualified institutional buyers showed minimal interest at just 0.10 times.
Billionbrains is offering shares in the ₹95-100 price band through a fresh issue of ₹1,060 crore and an offer-for-sale of ₹5,572.30 crore by promoters and investor shareholders. The IPO lot size is 150 equity shares. The company had earlier raised ₹2,984.5 crore from 102 anchor investors, including the Government of Singapore, Abu Dhabi Investment Authority, and major domestic mutual funds.
Lenskart’s stellar finish
Meanwhile, Lenskart Solutions’ IPO closed on Tuesday with an overall subscription of 28.26 times. The eyewear retailer saw strong demand from QIBs at 40.35 times, followed by non-institutional investors at 18.23 times and retail investors at 7.54 times. Lenskart’s public offering has a fresh issue of shares worth ₹2,150 crore and an Offer-for-Sale (OFS) of 12.75 crore shares by promoters and investors.
The ₹7,278-crore IPO hit the capital market at a price band of ₹382-402. Lenskart had earlier raised ₹3,268.36 crore from anchor investors at ₹402 per share.
Lenskart proposes to use the proceeds from the IPO for strategic initiatives, including capital expenditure to set up new company-operated, company-owned (CoCo) stores in India, and payments under lease, rent, and licence agreements for these CoCo stores.
Brokerage calls mixed
Brokerage views on Groww remain mixed. SBI Securities and Reliance Securities recommended ‘subscribe’, citing the company’s leadership in digital broking and expected industry growth of 14-16 per cent CAGR through FY30. Anand Rathi assigned a ‘subscribe for long-term’ rating, while Angel One maintained a ‘neutral’ stance, noting the steep valuation of 40.79x post-issue P/E at the upper price band.