Lenskart IPO Opens with Strong Retail Demand, Overall Subscription at 0.67 Times on Day 1

Lenskart Solutions Ltd's initial public offering (IPO) commenced on November 1st, 2025, and by 2:15 PM, it had achieved an overall subscription level of 0.67 times. The retail investor segment demonstrated robust demand, with its quota being over-subscribed at 1.03 times. Subscriptions from Qualified Institutional Buyers (QIBs) stood at 0.76 times, while Non-Institutional Investors (NIIs) subscribed 0.26 times. The employee quota was booked at 0.88 times.

The public issue, valued at ₹7,278 crore, comprises a fresh issue component of ₹2,150 crore and an offer-for-sale (OFS) of 12.75 crore equity shares. The price band for the IPO has been fixed between ₹382 and ₹402 per share, with a minimum application size of 37 shares. The subscription period will conclude on November 4th, 2025, and the company's shares are anticipated to be listed on the National Stock Exchange (NSE) on November 10th, 2025.

Prominent selling shareholders include Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi, alongside institutional investors like SVF II Lightbulb (Cayman) Ltd and Kedaara Capital Fund II LLP. Ahead of the public offering, Lenskart allocated approximately 8.13 crore shares at ₹402 each to anchor investors, including major mutual funds and insurance companies like SBI Mutual Fund, HDFC Mutual Fund, SBI Life Insurance, and HDFC Life Insurance.

The company intends to utilize the net proceeds from the IPO for capital expenditure to establish new company-operated stores, business promotion activities, and general corporate purposes. The issue is being managed by Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Avendus Capital Private Limited, Citigroup Global Markets India Private Limited, Axis Capital Limited, and Intensive Fiscal Services Private Limited as book running lead managers.

Despite positive recommendations from most brokerages recommending subscription for the long term, analysts have flagged broader market risks. These include dependence on supply chains, the intense competitive landscape in organised eyewear retail, and the company's capability to sustain profitability as it continues its growth trajectory.

Impact: This IPO is a significant event for India's retail and startup ecosystem, signaling strong investor appetite for homegrown companies. The subscription levels, especially among retail investors, are a positive indicator. However, the company's ability to navigate competitive pressures and maintain profitability post-listing will be critical for its stock market performance. Rating: 8/10.

Difficult Terms: * **IPO (Initial Public Offering)**: The process by which a private company offers its shares to the public for the first time to raise capital. * **Subscription**: The extent to which shares offered in an IPO are applied for by investors. A subscription of 'X times' means investors have applied for X times the number of shares available. * **Qualified Institutional Buyers (QIBs)**: Large institutional investors such as mutual funds, foreign institutional investors, and insurance companies that are licensed to invest in the stock market. * **Non-Institutional Investors (NIIs)**: High net-worth individuals, corporate bodies, or trusts that invest large sums but do not fall under the QIB or retail categories. * **Retail Category**: Individual investors applying for shares up to a specified limit, typically ₹2 lakh in India. * **Offer-for-Sale (OFS)**: A clause in an IPO where existing shareholders sell their stakes, and the company itself does not receive any funds from this portion. * **Anchor Book**: A pre-IPO book-building process where a portion of the issue is allocated to a select group of large institutional investors who commit to subscribing before the IPO opens to the general public. * **Price Band**: The range within which the IPO shares are offered for subscription. * **Book Running Lead Managers**: Investment banks that manage the IPO process, from structuring and marketing to final allocation and listing.