Lenskart's Rs 7,000-crore IPO GMP declines ahead of Friday launch; here's what analysts say

Lenskart IPO opens for subscription on October 31. 

The Rs 7,278-crore Lenskart initial public offering (IPO) is scheduled to open for public subscription on October 31 and close on November 4. The bidding for anchor investors will open on October 30.

The eyewear retailer Lenskart Solutions has set a price band of Rs 382-402 per share for the issue, which is expected to value the company at over Rs 69,700 crore.

Grey market indicators show a decline in sentiment ahead of the launch. Market trackers said the shares are currently quoting a premium of about 17 percent in the unregulated market. According to Investorgain, the grey market premium (GMP) stands at Rs 70, implying a listing gain of around 17.41 percent. Earlier this week, the premium had moved up to nearly 27 percent.

Additionally, SBI Mutual Fund has invested Rs 100 crore in the company in a pre-IPO funding round.

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Lenskart is the country’s largest organised retailer of prescription eyeglasses by B2C sales volumes, and among the top two players in Asia. The company has reported growth in both revenue and operations over recent years.

Lenskart IPO: Should you subscribe?

The analysts at the SBI Securities, noted that the valuation at the upper price band works out to 10.1 times FY25 EV/Sales and 68.7 times EV/EBITDA on a post-issue basis. They noted that the issue appears stretched on valuation, which could limit listing gains. However, they cited the company’s business model and the potential of the domestic eyewear market as key positives.

The research report said profitability metrics will be closely monitored, as the company scales up operations. Lenskart’s reported EBITDA margin improved from 7.0 percent in FY23 to 14.7 percent in FY25. The brokerage report advised subscribing to the IPO for the long term at the cut-off price.

Lenskart IPO shares are expected to be allotted on November 6, while the listing is scheduled to take place on November 10.

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