Lenskart IPO Allotment Finalizes Tomorrow Amidst Strong Investor Demand and Declining Grey Market Premium

The allotment of shares for Lenskart Solutions Ltd's Initial Public Offering (IPO) is scheduled for tomorrow. The IPO garnered significant investor interest, being subscribed more than 28 times across all categories, including retail investors (7.56 times), Qualified Institutional Buyers (QIBs) (40.36 times), and Non-Institutional Investors (NIIs) (18.23 times). This overwhelming response is attributed to Lenskart's strong brand presence and leadership in India's expanding eyewear market.

However, a notable concern is the sharp drop in the Grey Market Premium (GMP), which has fallen to Rs 42 as of November 5, 2025. This indicates a potential cooling of investor sentiment in the unlisted market, suggesting that while the IPO was heavily oversubscribed, the market anticipates a more modest listing performance than initially expected. The estimated listing price, based on the price band of Rs 382–402, is Rs 444 per share, translating to approximately a 10.45% gain. The decline in GMP might reflect valuation concerns or broader market volatility.

The Lenskart Solutions IPO was a book-built issue totaling Rs 7,278.02 crore, comprising a fresh issue of Rs 2,150 crore and an Offer for Sale (OFS) of Rs 5,128.02 crore. The company is expected to list on both the BSE and NSE around November 10, 2025.

Impact: The strong subscription figures underscore investor confidence in Lenskart's business model and market position. Nevertheless, the declining GMP acts as a cautionary signal for immediate listing gains. Investors should carefully assess the gap between the GMP and the issue price, considering potential volatility on the listing day. Rating: 7/10

Difficult terms: IPO (Initial Public Offering): The process by which a private company offers its shares to the public for the first time, becoming a publicly traded company. Subscription: The process by which investors apply to buy shares during an IPO. A subscription of 'X' times means the demand for shares was 'X' times the number of shares offered. Grey Market Premium (GMP): An unofficial indicator of investor sentiment where IPO shares are traded in the grey market at a premium or discount before their official listing on stock exchanges. Qualified Institutional Buyers (QIBs): Large institutional investors like mutual funds, foreign portfolio investors, and financial institutions that invest in securities. Non-Institutional Investors (NIIs): Investors who are not Qualified Institutional Buyers and invest above the retail investor limit. This includes high-net-worth individuals and corporate bodies. Book-built issue: An IPO method where the final price is determined based on demand from potential investors, with a price band set beforehand. Offer for Sale (OFS): A portion of the IPO where existing shareholders sell their stake in the company, rather than the company issuing new shares. Listing: The first day a company's shares trade on a stock exchange.