The initial public offering of Lenskart Solutions Ltd continued to receive decent subscriptions on the second day of share sale on Monday, November 3. Lenskart IPO subscription status was 2.02 times on Day 2.
Lenskart IPO subscriptions runs from October 31 to November 4. Lenskart IPO price band has been set between ₹382 and ₹402 per share, targeting a valuation of over ₹69,700 crore at the upper limit. Lenskart IPO GMP today stands at ₹59.
The Lenskart IPO has allocated 75% of the shares in the public offering to qualified institutional buyers (QIBs). Additionally, up to 15% of the shares are designated for non-institutional investors (NIIs), while a 10% is reserved for retail investors. Furthermore, a discount of ₹19 per equity share will be available to eligible employees.
Tentatively, Lenskart IPO basis of allotment of shares will be finalised on Thursday, November 6, and the company will initiate refunds on Friday, November 7, while the shares will be credited to the demat account of allottees on the same day following refund. Lenskart share price is likely to be listed on BSE and NSE on Monday, November 10.
Lenskart IPO GMP today
Lenskart IPO GMP today is ₹59. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Lenskart share price was indicated at ₹461 apiece, which is 14.68% higher than the IPO price of ₹402.
Analyzing the last 9 sessions of grey market activities, the current GMP stands at ₹59, suggesting a potential downward trend. It’s interesting to note that the lowest GMP recorded during this period is ₹48.00, while the highest has reached ₹108.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Lenskart IPO subscription status
Lenskart IPO subscription status was 2.02 times on day 2. The retail portion was subscribed 3.33 times, and NII portion has been booked 1.89 times, Qualified Institutional Buyers (QIBs) portion received 1.64 times bids. Employee portion subscribed 2.53 times.
The company has received bids for 20,11,09,245 shares against 9,97,61,257 shares on offer, at 17:00 IST, according to data on BSE.
Lenskart IPO subscription status was 1.13 times on day 1.
Lenskart IPO Review
According to SMIFS, the company has developed impressive technology-driven competitive advantages that are significantly enhancing its market position. Key innovations include AI-powered remote optometry, where 164 optometrists have conducted an impressive 13.45 million eye tests; an augmented reality (AR) virtual try-on feature that has gained over 100 million app downloads; and a sophisticated machine learning approach to site selection. These advancements have successfully reduced store payback to just 10.29 months, compared to the industry average of 18-24 months, with a remarkable 80.80% of FY23-FY24 stores achieving this milestone.
Furthermore, the company plans to utilize the ₹21,500 million raised through its IPO to establish 620 new CoCo stores. With additional funding through internal accruals, the target is to surpass a total of 1,200 stores by FY26-FY28. This strategic expansion will allow the company to deepen its reach and presence in Tier-2 and Tier-3 markets, positioning it for sustained growth and success.
“We recommend subscribing to the issue given Lenskart’s profitability recovery, 65% penetration headroom in India’s 777 million affected population, technology-led 10-month store payback, and sustainable competitive advantages offering compelling value creation in India’s fastest growing eyewear retail sector, a high-risk, high-potential opportunity for long-term investors,” said the brokerage.
As per SBICAP Securities, considering the strong business model, the company is positioned to take advantage of the rapidly growing domestic organized but underutilized eyeglasses sector. Additionally, as the business expands, there is potential for profitability enhancement in the medium to long term. The listed international competitors demonstrate a solid margin profile, and moving forward, the market will closely observe Lenskart’s journey towards profitability as well.
“As per the historical track record, the company has consistently improved its reported EBITDA margin#(7.0% in FY23 to 14.7% in FY25) and incremental improvement will be keenly tracked by the investors. We recommend investors to SUBSCRIBE to the IPO for long term at the cut-off price,” said the brokerage.
Further, Marwadi Financial Services said that it recommends subscribing to the issue as the company the largest seller of prescription eyeglasses in terms of volumes sold in India in FY25. However, the IPO is richly priced and company will have to continue growing its business at high growth rate in order to justify its valuation, which keeps us cautious from a long-term perspective.
Lenskart IPO details
Lenskart IPO includes a new issue of shares worth ₹2,150 crore. This also involves an Offer-for-Sale (OFS) of 12.75 crore equity shares from promoters and investors.
Promoters such as Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi, along with investors like SVF II Lightbulb (Cayman) Ltd, Schroders Capital Private Equity Asia Mauritius Ltd, PI Opportunities Fund-II, Macritchie Investments Pte Ltd, Kedaara Capital Fund II LLP, and Alpha Wave Ventures LP, will sell their shares.
Lenskart plans to use the funds from the IPO for important projects. These include opening new company-operated and company-owned (CoCo) stores across India and covering costs for leases, rent, and licenses related to these stores.
The company also aims to invest in technology and cloud services, promote its brand, explore possible acquisitions, and meet general business needs.
The book-running lead managers for this offering are Kotak Mahindra Capital Company, Morgan Stanley India Company, Avendus Capital, Citigroup Global Markets India, Axis Capital, and Intensive Fiscal Services.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.