Lenskart IPO Sees Strong Demand on Day 1, Subscribed 1.13 Times

Lenskart Solutions' Initial Public Offering (IPO) commenced with robust investor demand, reaching a subscription level of 1.13 times by the close of its first bidding day.

**Subscription Details**: Qualified Institutional Buyers (QIBs) spearheaded the demand, subscribing their allocated portion 1.42 times. Retail Investors followed closely with a subscription rate of 1.31 times. Non-Institutional Investors (NIIs) demonstrated moderate participation, with their quota being subscribed 0.41 times.

**Grey Market Premium (GMP)**: In the unofficial unlisted market, Lenskart's shares are currently trading at a premium of ₹85. Considering the upper end of the IPO price band at ₹402, this suggests an estimated listing price of approximately ₹487 per share, pointing to a potential listing gain of around 21%. However, market analysts caution that GMPs are merely indicative of market sentiment and can be highly volatile before the official listing.

**IPO Details**: Lenskart is offering its shares within a price band of ₹382 to ₹402 per share. The total issue size is substantial, amounting to ₹7,278 crore, composed of a fresh issue worth ₹2,150 crore and an Offer for Sale (OFS) component of ₹5,128 crore.

**Use of Funds**: The capital raised through this IPO is designated for strategic purposes, including expanding its extensive retail footprint, strengthening its technology infrastructure, and enhancing its marketing efforts.

**Company Performance**: In the fiscal year 2025 (FY25), Lenskart reported a net profit of ₹297 crore, marking a significant turnaround from a net loss of ₹10 crore in FY24. The company's revenue also saw a healthy surge of 22% year-on-year, reaching ₹6,625 crore, driven by strong domestic demand and expanding international operations.

**Timeline**: The allotment process for the Lenskart Solutions IPO is anticipated to be finalized around November 6, with the company expected to make its debut on the stock exchanges on November 10.

**Impact** This news holds significant weight for the Indian stock market, representing the IPO of a leading consumer eyewear retailer. A strong subscription and potential positive listing could enhance investor confidence in India's retail and omnichannel business models, potentially drawing more investment into these sectors and providing a new avenue for portfolio diversification for Indian investors. **Impact Rating:** 8/10

**Difficult Terms:** * **Initial Public Offering (IPO)**: The process where a privately held company offers its shares to the public for the first time, enabling it to raise capital and become a publicly traded entity. * **Subscribed**: Refers to the ratio of the number of shares applied for by investors versus the number of shares being offered. A subscription of 1.13 times means investors applied for 1.13 times the available shares. * **Qualified Institutional Buyers (QIBs)**: Large, regulated institutional investors such as mutual funds, foreign portfolio investors, insurance companies, and pension funds. * **Retail Investors**: Individual investors who typically invest smaller amounts, applying for shares up to a stipulated limit (often ₹2 lakh in India). * **Non-Institutional Investors (NIIs)**: Investors who bid for amounts exceeding the retail limit but are not QIBs. This category often includes high-net-worth individuals and corporate entities. * **Grey Market Premium (GMP)**: An unofficial indicator representing the premium at which IPO shares are traded in the grey market before their official listing on stock exchanges. It reflects market sentiment towards the issue. * **Price Band**: The range set by the company within which its shares will be offered to the public during the IPO. * **Offer for Sale (OFS)**: A type of IPO where existing shareholders sell their shares to the public, rather than the company issuing new shares. * **Omnichannel Retailer**: A business that integrates various sales channels, such as online stores, mobile apps, and physical brick-and-mortar stores, to provide a unified customer experience.