Lenskart IPO Oversubscribed Over 28 Times; Groww IPO Opens Strong

Dalal Street witnessed significant action on Tuesday with two high-profile Initial Public Offerings (IPOs) vying for investor capital, together aiming to raise nearly Rs 14,000 crore.

The Rs 7,278 crore Lenskart IPO concluded its bidding period significantly oversubscribed, achieving a subscription rate of over 28 times. Institutional investors led the demand, subscribing their portion more than 40 times. This strong uptake occurred despite public discussions and concerns on social media regarding the company's ambitious valuation, which reportedly aims for around Rs 70,000 crore at the upper end of its price band.

Meanwhile, Billionbrains Garage Ventures, operating under the brand name Groww, launched its Rs 6,632 crore IPO. On its opening day, the IPO garnered a subscription of 57%, with the portion reserved for retail investors being fully subscribed. The company had also conducted a pre-IPO allotment, raising approximately Rs 2,985 crore from institutional investors. The IPO is scheduled to close on November 7.

Impact This dual IPO event highlights the robust investor appetite present in the Indian primary markets, especially for companies in the consumer and financial technology sectors. The high subscription levels, even in the face of valuation concerns for Lenskart, suggest ample market liquidity and investor confidence. This trend can encourage more companies to pursue public listings, thereby providing capital for growth and potentially boosting related market segments. Rating: 8/10.

Definitions: IPO (Initial Public Offering): The process by which a private company first sells its shares to the public. Subscription: The measure of demand for an IPO, indicating how many times the offered shares have been applied for. Institutional Investors: Large financial entities such as mutual funds, pension funds, and insurance companies that invest substantial capital. High Net Worth Investors (HNIs): Individuals who possess significant financial assets and invest large sums in securities. Valuation: The estimated economic worth of a company, often determined by its market capitalization and future earning potential. Price Band: A range within which the price of a share is offered during an IPO. Pre-IPO Allotment: The allocation of shares to specific institutional investors before the IPO becomes available to the general public.