Lenskart IPO Opens Today: Investors Weigh Rs 7,278 Crore Subscription Opportunity Amid Valuation Concerns

India's homegrown eyewear major Lenskart is launching its much-anticipated Initial Public Offering (IPO) today, October 31, aiming to raise Rs 7,278 crore. The offering includes a fresh issue of Rs 2,150 crore for business expansion and technology upgrades, and an Offer for Sale (OFS) of Rs 5,128 crore where existing shareholders, including prominent investors like SoftBank and Kedaara Capital, along with founders, will sell a portion of their stakes. The IPO will be open for subscription until November 4, with shares priced between Rs 382 and Rs 402. A lot size is 37 shares, making the minimum investment for retail investors Rs 14,874. The company plans to use the proceeds for expanding its store network, enhancing technology, brand marketing, and pursuing strategic acquisitions, especially in Southeast Asia and the Middle East.

**Impact** Grey market indicators show strong investor sentiment, with Lenskart shares commanding a premium of around Rs 72, reflecting about 18% above the upper IPO price band. However, brokerage firms present a cautious outlook on valuations. SBI Securities notes that at a Rs 70,000 crore market cap, the valuations (10x EV/Sales) appear stretched for the medium term, suggesting it is best suited for long-term investors. Deven Choksey Research rates it as a 'Subscribe for listing gains,' citing a high P/E of 228x (FY25 EPS) but acknowledges the business model's strength. The IPO's success could fuel Lenskart's aggressive expansion plans and influence the retail and e-commerce sectors. Impact Rating: 8/10

**Difficult Terms Explained** * **IPO (Initial Public Offering):** The process by which a private company offers its shares to the public for the first time to raise capital. * **Fresh Issue:** New shares issued by the company, directly increasing its capital. * **Offer for Sale (OFS):** Existing shareholders sell their shares to new investors, and the proceeds go to the selling shareholders, not the company. * **Grey Market Premium (GMP):** The unofficial premium at which an IPO's shares are traded in the grey market before listing. It indicates demand but is not a guarantee of performance. * **Price Band:** The range within which the IPO shares are offered to the public. * **Lot Size:** The minimum number of shares an investor can apply for in an IPO. * **Market Capitalization:** The total market value of a company's outstanding shares. * **EV/Sales (Enterprise Value to Sales):** A valuation metric comparing a company's total value to its revenue. * **P/E Ratio (Price-to-Earnings Ratio):** A valuation metric comparing a company's stock price to its earnings per share. * **EV/EBITDA:** A valuation metric comparing a company's total enterprise value to its earnings before interest, taxes, depreciation, and amortization. * **TTM (Trailing Twelve Months):** A financial reporting period covering the most recent 12 months.