Copyright news18
Lenskart IPO GMP Today: Eyewear maker Lenskart is set to make its stock market debut on Monday, November 10. Ahead of its listing, the company’s grey market premium (GMP), which signals possible gains or losses for investors on the listing day, has crashed over 90% to Rs 8, compared with the peak GMP of Rs 108 recorded a few days ago. Yesterday, November 6, the grey market premium had stood at Rs 30, which was nearly 70% lower than the peak GMP. It is important to note that the GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price. The IPO saw an overwhelming rush from investors across the board, pulling in bids worth Rs 27,494 crore for 9.97 crore shares on offer, an overall subscription of 6.86 times. Qualified institutional buyers subscribed 6.5 times, non-institutional investors 8.6 times, and retail investors 5.37 times, while anchors had already taken up their full quota of Rs 3,268 crore. Even employees showed strong participation, subscribing 3.9 times to their portion. “While the numbers look stellar on paper, such heavy oversubscription often reflects short-term market excitement rather than deep conviction in the company’s fundamentals,” said Gaurav Garg, research analyst at Lemonn Markets Desk. Lenskart IPO Listing Date The listing of Lenskart will take place on Monday, November 10, on both the BSE and the NSE. What Have Brokerages Said? Analysts point towards the high valuation of the company. SBI Securities said that at the upper end of the price band, Lenskart’s valuation stands at 10.1 times its FY25 EV/Sales and 68.7 times EV/EBITDA on a post-issue basis. The IPO comes at a price-to-earnings (P/E) ratio of 230x. The analysts at SBI Securities cautioned that the issue appears stretched on valuation, which may cap potential listing gains. However, they highlighted the company’s strong business model and the significant growth opportunity in India’s expanding eyewear market as key positives. The brokerage also noted that profitability metrics will need close monitoring as the company continues to scale its operations. Lenskart’s EBITDA margin has notably improved from 7% in FY23 to 14.7% in FY25, reflecting operational efficiency. Considering the company’s long-term prospects, SBI Securities has recommended subscribing to the IPO for the long term at the cut-off price. Brokerage firm SIMFS recommends subscribing to the IPO, highlighting the strong growth runway in India’s eyewear market and Lenskart’s tech-enabled business model. It pointed to the company’s “vertically integrated manufacturing ecosystem” and profitability turnaround. The firm noted that India’s eyewear industry is “poised for exceptional growth… projected to reach Rs 1,483 billion by FY30, clocking a 13% CAGR.” It emphasised Lenskart’s scale advantages, saying the firm produces “30-40 million lenses and 25 million frames annually… eliminating 2.5-4x middlemen markups, enabling 70% gross margins.” SIMFS recommended that the IPO is a “high-risk, high-potential opportunity” given long-term growth tailwinds and Lenskart’s execution track record.
