Lenskart IPO GMP
The grey market premium (GMP) for the issue is currently around Rs 67, indicating an estimated listing gain of about 16% over the upper price band, suggesting near-term enthusiasm.
Business overview
Lenskart has transformed from an online eyewear startup into a full-fledged omnichannel retail player. The company sells prescription eyeglasses, sunglasses, and contact lenses through its website, app, and an expanding offline network of over 2,800 stores across 14 countries, including 2,137 stores in India. It also owns international brands such as Owndays (Japan) and Meller (Spain), giving it a strong foothold in Asia and Europe.
The company reported FY25 revenue of Rs 6,653 crore, up 23% year-on-year, and a net profit of Rs 296 crore, marking a turnaround from losses in FY24. Its EBITDA margin improved sharply to 14.7%, driven by better cost control, strong branding, and premiumization.
Lenskart manufactures most of its products in-house at facilities in Bhiwadi and Gurugram, achieving supply chain integration that helps maintain affordability while ensuring quality. The company is also building the world’s largest eyewear manufacturing facility in Hyderabad, which is expected to further strengthen its cost efficiency and scalability.
Valuations and Financials
At the upper price band of Rs 402, the issue is valued at a price-to-earnings (P/E) multiple of 235x FY25 earnings and an EV/EBITDA multiple of 68x, making it one of the most expensive retail listings in recent years. Analysts say that while the valuations are rich, the company’s long-term growth prospects remain strong.
The Indian eyewear market—currently valued at Rs 78,800 crore—is projected to double to Rs 1.48 lakh crore by FY30, growing at a 13% CAGR. Rising digital adoption, better healthcare access, and higher fashion consciousness are key drivers of demand.
Use of Proceeds
The net proceeds from the fresh issue will be used for setting up new company-owned stores (Rs 272 crore), lease and rental payments for stores (Rs 591 crore), investment in technology and cloud infrastructure (Rs 213 crore) and brand marketing and business promotion (Rs 320 crore).
Brokerage Recommendations
SBI Securities has given a “Subscribe for long term” rating, citing Lenskart’s robust business model and leadership in an underpenetrated market. The brokerage notes that while the listing gains could be limited, the company’s integrated supply chain, improving profitability, and brand strength provide a long runway for growth.
Ventura Securities has also recommended “Subscribe”, calling Lenskart a visionary growth story. It highlights the company’s high return potential from its technology-driven expansion, AI-based customer interface, and store payback period of under one year. The brokerage expects profitability to expand further as the company scales and enters new geographies.
In contrast, Nirmal Bang acknowledged that the IPO looks expensive at first glance, but believes valuations are justified when compared to other modern retailers like Trent and Metro. The firm also maintained a Subscribe with long-term view rating, noting Lenskart’s strong brand equity, premium portfolio, and international growth plans.
Outlook
With a GMP of Rs 67, investors are expecting modest listing gains, but analysts believe Lenskart’s story is less about short-term pop and more about long-term potential. The company’s dominance in India’s organized eyewear market, rapid international expansion, and improving financials make it a strategic consumer play for patient investors.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
