LENSKART LISTING SHOCKER: Shares Surge 14% After Discount Debut Amidst Rare 'SELL' Call!

Lenskart's shares witnessed a dramatic intraday surge of nearly 14 percent after listing at a discount on the stock exchanges. The company's Initial Public Offering (IPO), valued at Rs 7,278 crore, had seen strong investor interest, being subscribed over 28 times. However, the stock initially listed at a discount of nearly 3 percent on BSE, opening at Rs 390 per share and subsequently dropping to an intraday low of Rs 355.7. The shares then mounted a strong recovery, climbing to an intraday high of Rs 404.8, briefly surpassing its IPO price of Rs 402.

Adding to the market drama, Ambit Capital issued a rare 'Sell' call on Lenskart shares even before its market debut, setting a target price of Rs 337. The brokerage highlighted that Lenskart's made-to-order model is capital expenditure-heavy, which could lead to muted returns and a delay in turning free cash flow (FCF) positive, expected only in FY28. Independent market analysts like Ambareesh Baliga noted that while the business model is appealing, current valuations are too high, and such listings after strong subscriptions can deter future retail investor participation. Shivani Nyati of Swastika Investmart advised medium to long-term investors to hold with a stop loss around Rs 350, while short-term traders might consider exiting. Harshal Dasani of INVasset PMS pointed out that valuations remain stretched compared to peers, and near-term earnings visibility is limited due to ongoing investments. He suggested booking profits and waiting for more attractive entry points.

Impact This news has a moderate impact of 6/10 on the Indian stock market. It highlights valuation concerns for consumer-tech IPOs and affects investor sentiment towards upcoming offerings. The volatility of a heavily subscribed IPO can influence risk appetite.

Difficult Terms IPO: Initial Public Offering, where a private company offers its shares to the public for the first time. BSE: Bombay Stock Exchange, one of the oldest stock exchanges in India. Intraday: Within the trading day. Free Cash Flow (FCF): The cash a company generates after accounting for cash outflows to support operations and capital expenditures. Positive FCF indicates financial health. Grey Market Premium (GMP): The premium at which IPO shares trade in the unofficial grey market before listing. Valuation: The assessment of the worth of an asset or company.