The public markets are currently fixed on the Initial Public Offering (IPO) of eyewear giant Lenskart Solutions Limited, which launched its ₹7,278 crore issue for subscription on October 31, 2025. This highly anticipated listing marks a significant milestone in India’s consumer-tech space, but it is simultaneously generating one of the most intense valuation debates of the year.
The IPO, which combines a fresh issue of capital with a large Offer for Sale (OFS) from existing investors, was fully subscribed on its very first day of bidding, signaling strong immediate institutional and retail appetite. However, the company’s aggressive pricing strategy—aiming for a market capitalization nearing ₹70,000 crore—has left analysts and retail investors divided on whether Lenskart is a high-growth visionary or simply overpriced.
Key IPO Details and Timeline
The issue is open for four days, with the allocation structure heavily favoring Qualified Institutional Buyers (QIBs), as is typical for large tech-focused IPOs.
| Detail | Value |
|---|---|
| Issue Size | ₹7,278 crore (Fresh Issue: ₹2,150 Cr; OFS: ₹5,128 Cr) |
| Price Band | ₹382 to ₹402 per equity share |
| Subscription Period | October 31, 2025, to November 4, 2025 |
| Minimum Lot Size | 37 shares (Minimum retail investment: ₹14,874) |
| Expected Allotment Date | November 6, 2025 |
| Expected Listing Date | November 10, 2025 |
| Listing Exchanges | BSE and NSE |
Day 1 Subscription Status
The IPO received a robust response on day one, achieving full subscription with bids exceeding the shares on offer.
- Total Subscription: ~1.06 times
- QIBs (Qualified Institutional Buyers): ~1.42 times subscribed
- Retail Individual Investors (RIIs): ~1.12 times subscribed
- Non-Institutional Investors (NIIs): Subscribed to ~30-40% of their quota
The anchor investor portion, which opened ahead of the public issue, saw massive oversubscription, raising ₹3,268 crore from marquee global and domestic institutions, including the Government of Singapore, BlackRock, Fidelity, and domestic giants like SBI Mutual Fund and HDFC Mutual Fund.
The Valuation Controversy: A Premium Price for Premium Growth
The central point of contention in Lenskart’s IPO is its staggering valuation. At the upper end of the price band (₹402 per share), the company is seeking a market capitalization of nearly ₹70,000 crore (approximately $8 billion).
This valuation translates into key multiples that are substantially higher than those of established global and domestic retail peers:
- Price-to-Earnings (P/E) Ratio: Over 230x based on the company’s impressive ₹297 crore net profit reported for FY25.
- EV/EBITDA Multiple: Approximately 68x (Enterprise Value to Earnings Before Interest, Tax, Depreciation, and Amortization).
- Price-to-Sales (P/S) Ratio: Around 10x based on the FY25 revenue of ₹6,653 crore.
The “Shark Tank” Irony and Founder’s Defense
The high P/E ratio, which is several times higher than many traditional retail companies, has drawn sharp criticism, particularly on social media. Many commentators pointed out the irony, contrasting Lenskart’s public market valuation with the rigorous, lower valuation demands often seen by its CEO and founder, Peyush Bansal, during his appearances on Shark Tank India.
Adding to the controversy was the news that Bansal himself acquired a significant stake at a much lower price (around ₹52 per share) just months before the IPO, effectively creating an 8x jump in valuation in a short period.
In response, Bansal has maintained that the valuation is market-driven and reflective of Lenskart’s long-term potential as a high-growth technology company. He stated that his job is to “create value for customers,” and that the market will ultimately determine the price. Other analysts, such as ace investor Shankar Sharma, defended the pricing, arguing that when compared to other recently listed Indian tech startups like Nykaa, Zomato, and Paytm, Lenskart’s price-to-sales multiple is actually comparable or lower, suggesting the criticism might be disproportionate.
Lenskart’s Business Model and Financial Turnaround
Founded in 2008 by Peyush Bansal, Lenskart has successfully transformed from an online-only portal into India’s largest organized eyewear retailer through a vertically integrated, omnichannel model.
The Omnichannel Edge
The company’s core strength lies in its ability to merge digital convenience with physical accessibility.
- Massive Retail Footprint: Lenskart operates over 2,800 stores globally, including more than 2,100 in India, using a Company-Owned, Company-Operated (CoCo) model for rapid and efficient expansion across metro, Tier-1, and Tier-2 cities.
- Vertical Integration: By controlling the entire supply chain—from design and manufacturing (of both frames and lenses) to retail—Lenskart maintains tight quality control, high gross margins (~70%), and competitive pricing.
- Technology-First Approach: The company leverages technology extensively, including AI-powered virtual try-ons, robotic lens manufacturing, and remote optometrist services, which contribute to a shorter store payback period (often under 10 months).
Lenskart’s international ambitions are also accelerating, with operations across 14 countries and a strong presence in the Middle East and Southeast Asia, supported by the acquisition of Japanese eyewear brand Owndays.
Financial Performance
The company achieved a critical financial milestone in FY25, moving from years of losses to a net profit of ₹297 crore, with revenues growing 22% year-on-year to ₹6,653 crore. This turnaround demonstrates operational leverage and improved cost efficiencies.
It is worth noting that a portion of the reported FY25 profit included one-time accounting adjustments. While the operational core of the business has clearly strengthened, sustained profitability in line with global peers will be the key metric for investors to monitor post-listing.
Use of IPO Proceeds and Promoter Windfall
The ₹7,278 crore IPO is split between a Fresh Issue and an Offer for Sale (OFS), serving two distinct purposes: business expansion and early investor exit.
Fresh Issue (₹2,150 Crore)
The funds raised directly by Lenskart will be deployed toward aggressive growth strategies:
- Store Expansion: Capital expenditure for setting up hundreds of new CoCo stores across India.
- Infrastructure: Payments towards store lease and rental obligations.
- Technology & Marketing: Significant investments in cloud infrastructure, AI capabilities, and brand marketing initiatives.
- Acquisitions: Funding potential inorganic growth opportunities.
Offer for Sale (OFS: ₹5,128 Crore)
This portion allows early investors and promoters to partially cash out. Key sellers include:
- SoftBank Vision Fund II: Diluting a portion of its large stake.
- Temasek’s MacRitchie Investments and Kedaara Capital: Selling shares to realize substantial returns.
- Promoters: Co-founder and CEO Peyush Bansal is selling approximately 2.05 crore shares, which could fetch him a payout of around ₹824 crore at the upper price band. Other co-founders are also participating, highlighting the bonanza achieved by early backers.
Investment Outlook: Long-Term Growth vs. Short-Term Price
The consensus among major brokerages like SBI Securities and Nirmal Bang is a “Subscribe for Long Term” recommendation, despite acknowledging the high valuation.
The Bull Case:
- Market Leadership: Dominance in India’s organized eyewear sector, a market projected to double to ₹1.48 lakh crore by FY30.
- Strong Fundamentals: Integrated supply chain leading to high margins and a proven omnichannel model that scales efficiently.
- Growth Trajectory: High expected revenue and profit growth driven by expansion into smaller cities and international markets.
The Bear Case:
- Stretched Valuation: The P/E multiple of 230x sets an extremely high bar for future performance, leaving very little room for error or growth deceleration.
- Listing Gains: Although the Grey Market Premium (GMP) initially suggested gains of up to 27%, the premium has moderated to a more cautious 10-18%, hinting that initial listing returns may be modest.
- Profit Quality: Investors must be confident that Lenskart can sustain and rapidly scale its current profitability metrics without relying on one-time gains.
In summary, the Lenskart IPO is a premium offering that asks investors to bet on its potential to revolutionize the massive, underpenetrated eyewear market in India and internationally. It is an investment for those who prioritize long-term, high-growth potential over immediate value and are willing to pay a high price for market leadership and technological execution.
