Lenskart IPO Debut Falls Short, Shares List Below Price

Eyewear giant Lenskart Solutions Ltd saw a tepid start on the stock market on Monday, with its shares listing at a discount from the initial public offering (IPO) price, surprising many retail and institutional investors. Despite a strong subscription of 28.26 times during the IPO period from October 31 to November 4, the market response on listing day was muted.

Shares of Lenskart opened at Rs 395 on the NSE, marking a 1.74% drop from the upper band IPO price of Rs 402. On the BSE, the stock debuted at Rs 390 per share, nearly 3% below the IPO price. Post-listing, the company’s market capitalization stood at approximately Rs 67,659.94 crore.

The IPO, valued at Rs 7,278 crore with a price band of Rs 382-402 per share, had initially raised expectations of a premium listing. However, the grey market forecast of around 2% listing premium did not materialize, signaling cautious sentiment among investors.

While Lenskart continues to dominate the eyewear market in India, high valuations, recent financial losses, and increasing competition may have contributed to the subdued debut. The company aims to use IPO proceeds to expand its network of company-operated stores (CoCo stores), invest in technology, marketing, and potentially explore strategic acquisitions.

Market watchers suggest that while short-term trading may be under pressure, Lenskart holds medium- to long-term growth potential due to its brand visibility, international expansion plans, and focus on increasing margins.