Lenskart’s recent stock market listing, despite an oversubscribed IPO and massive pre-listing hype, delivered a volatile and underwhelming debut. The eyewear platform’s journey on Dalal Street has sparked debates about valuation, timing, and investor sentiment.
Lenskart Solutions made its highly anticipated market debut on November 10, 2025, listing on both the BSE and NSE. Expectations soared because the IPO was oversubscribed by more than 28 times, with institutional investors leading the charge. However, the debut set a different tone: shares listed at ₹395 on the NSE and ₹390 on the BSE, both below the issue price of ₹402, representing discounts of nearly 1.7% and 3%, respectively.
Within hours, the stock tumbled further, hitting intraday lows of ₹355, a drop of almost 12%. Eventually, it clawed back to recover, closing marginally above the IPO price thanks to late buying interest by larger investors.
Pre-Listing Hype: Why Was the IPO So Hot?
- The anticipation was fueled by Lenskart’s rapid growth and its position as India’s leading eyewear retailer, with a technology-driven business and strong branding.
- The IPO raised a substantial ₹7,278 crore (approximately $828 million), making it one of the year’s largest new listings, with strong support from institutional and high-net-worth investors.
- The Grey Market Premium, a key sentiment indicator, initially soared to over ₹100 but evaporated to near-zero on listing day, reflecting last-minute anxiety.
Investors Burned: What Went Wrong?
Lofty Valuation
- Lenskart went public at a sky-high valuation: over ₹70,000 crore ($8 billion), translating to 10.1x EV/Sales and 68.7x EV/EBITDA based on FY25 estimates, which is far higher than that of peers like Titan, Trent, or Nykaa.
- The price-to-earnings (P/E) ratio for FY25 stood at over 230x, signalling aggressive pricing for a business with modest net profits and 4% margins, metrics that prompted many institutional investors to pause.
Offer-for-Sale (OFS) Overhang
- Approximately 70% of the IPO comprised OFS by existing investors such as SoftBank, Temasek, and Kedaara Capital, meaning the majority of funds went to existing investors, not into Lenskart’s business.
- Big investors cashing out sometimes signals a lack of confidence in longer-term returns for new retail shareholders.
Market Mood and Timing
- The broader market had turned cautious after exuberance around previous tech IPOs faded in late 2025.
- Analysts suggested that, despite Lenskart’s strong consumer brand, the listing suffered from bad market timing, arriving amid global uncertainties and local liquidity concerns.
Retail vs. Institutional Dynamics
- While institutional demand was robust, retail participation was lukewarm. Many retail traders who were allotted shares in the IPO rushed to offload for quick gains, adding to listing-day volatility.
- SEBI data showed that over half of IPO shares (excluding anchor investors) are typically sold within one week of listing, a trend very much at play here.
Facts Investors Should Know Now
Lenskart’s Financial Position
- FY25 marked Lenskart’s first profitable year, posting profits of ₹297 crore against a loss of ₹ 1,000 crore in the prior year, with 23% year-over-year revenue growth to ₹6,652.5 crore.
- The business remains fast-growing, with a strong omni-channel (online + offline) model and significant market share in India’s eyewear sector.
Risks and Red Flags
- Valuation multiples are well above those of traditional and new-age retail peers; even sell-side analysts cautioned about limited listing gains.
- Over 70% OFS means that new investors are mainly buying stakes from exiting VCs, rather than contributing to business expansion.
Mixed Analyst Calls
- Brokerages remain divided: Some recommend Lenskart for long-term investors, citing solid fundamentals in a largely unorganised eyewear market. Others warn of further downside, citing expensive entry valuations and slim margins.
- Ambit Capital, for instance, initiated coverage with a ‘Sell’ rating and a sharp target price cut, while others, such as SBI Securities, suggest holding for the long run due to Lenskart’s growth potential.
Was It Just Hype Or Bad Timing?
- Hype was real: Lenskart’s consumer brand, digital strategy, and exclusive investor interest justified the pre-listing buzz.
- Timing hurt: Overheated valuations, global market nervousness, and hawkish moves by big investors combined to sap momentum on D-Street.
Investor sentiment shifted sharply within days as profit-taking, valuation anxiety, and macro uncertainty replaced optimism. Despite rebounding late in the debut session, Lenskart’s listing remains a sobering lesson on how even “hot” IPOs can stumble if expectations and pricing fail to align with broader market realities.
Takeaways for Investors
- Evaluate IPOs on normalised earnings and sustainable margins, not just narrative or growth numbers.
- Scrutinise OFS-heavy IPOs, as large VC exits can pressure listings.
- Watch for volatility in overhyped, high-multiple consumer tech stocks, especially during uncertain market environments.
- Despite a choppy debut, Lenskart’s business fundamentals are strong. Its long-term success will hinge on sustained profitability, margin expansion, and market share gains, not just the fireworks of IPO day.
Lenskart’s 2025 listing highlights the pitfalls of prioritising headlines over fundamentals, and why investors must approach India’s fast-evolving stock market with both discipline and diligence.