Shares of Lenskart made a tepid market debut on Monday, November 10, listing at Rs 395 per share, nearly 2% below its IPO price of Rs 402 on the NSE. The muted listing follows a sharp decline in the company’s grey market premium (GMP), which fell from over Rs 100 ahead of the issue to almost zero before the debut.
At the listing price, Lenskart’s market capitalization stands around Rs 68,500 crore, translating to a forward P/E multiple of roughly 196x, indicating a rich valuation. If the stock had listed at its IPO price, the market cap would have been close to Rs 69,741 crore with a P/E of over 200x.
The Rs 7,278 crore IPO consisted of a fresh issue worth Rs 2,150 crore and an offer for sale (OFS) of Rs 5,128 crore by promoters and existing investors. Post-issue, promoter shareholding has declined from 19.9% to 17.7%.
Ambit’s view and valuation concern
Brokerage firm Ambit issued a “sell” recommendation on Lenskart ahead of its debut, setting a price target of Rs 337 per share, implying a potential downside of 16% from the issue price. The brokerage expects the company to post a 20% revenue CAGR between FY25–FY28, supported by domestic expansion and global scale-up.
However, Ambit raised concerns over the stock’s steep valuation, cautioning that the 200x P/E multiple leaves little room for error, despite robust growth prospects and improving operating leverage.
Peyush Bansal calls listing ‘Day Zero’
Ahead of the listing, Lenskart Co-founder and CEO Peyush Bansal shared an open letter titled “It’s Still Day Zero,” describing the listing not as a milestone but a new beginning. He reiterated that the company’s mission goes beyond valuation — “from giving vision to India, to giving vision from India to the world.”
What should investors do?
While the company’s long-term fundamentals remain strong, analysts believe the lofty valuation and limited listing premium make it difficult to justify aggressive buying at debut levels. Investors may consider waiting for earnings visibility to improve before taking any fresh positions.
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