Lenskart’s muted market debut: The most-awaited IPO turns the worst-performing large public issue of 2025

The sparkle that usually accompanies a high-profile listing was amiss when Lenskart Solutions made its debut on the domestic bourses on Monday. Despite being one of the most anticipated and biggest public issues this year, the Peyush Bansal-led eyewear retailer’s ₹7,278-crore IPO barely managed to stay afloat, ending its first trading day with a muted 0.32% gain at ₹403.3 a share, slightly above its issue price of ₹402.

With a market cap of ₹69,967 crore,  Lenskart’s listing was among the biggest this year. But the subdued listing, broadly in line with D-Street expectations, has made Lenskart the weakest performer among large IPOs this year. It also became the weakest in terms of first-day performance among IPOs larger than ₹4,000 crore.  

In comparison, other large 2025 IPOs delivered far stronger debuts. LG Electronics India soared 48.19% on listing day, while NSDL and HDB Financial Services posted gains of 17% and 13.64%, respectively. Even Hexaware Technologies and Tata Capital managed respectable first-day gains of 7.89% and 1.35%, respectively.

Shares of Lenskart Solutions listed at ₹395 apiece on the NSE, down 1.75% from the issue price of ₹402, while the eyewear retailer debuted at ₹390 on the BSE, a discount of 2.99% to the IPO price. After listing, the stock slipped as much as 11.5% to hit a low of ₹355.70 apiece. However, it later rebounded, erasing early losses to rise 2.93% to ₹413.80 on the BSE.

Tepid debut underscores investor caution

The tepid debut reflects investor caution over its steep valuation and profitability outlook amid intensifying competition in the eyewear space, said analysts. According to Shivani Nyati, head of wealth at Swastika Investmart Ltd, valuation concerns, recent losses, and intense competition weighed on Lenskart’s near-term sentiment. 

That said, Nyati added that Lenskart’s premium brand perception, subscription-based Gold membership, and expanding presence in Tier II and III markets support its long-term growth story. “While concerns around high valuation and competitive intensity affected short-term performance, the IPO saw solid institutional participation, reflecting confidence in Lenskart’s global growth potential and improving margins,” Nyati said.

Lenskart, one of India’s largest omni-channel eyewear retailers, has built a strong online presence and a global retail network of over 2,500 stores, offering prescription glasses, sunglasses, and contact lenses under its private labels. Its vertically integrated model, in-house manufacturing, aggressive store expansion, and data-driven supply chain position the company as a category leader in India’s fast-growing organised eyewear market.

Ambit assigns 'Sell' rating

Ahead of its listing, Ambit Capital assigned said that Lenskart's valuation concerns overshadow operational momentum.

While Lenskart’s strong growth justifies a premium over other retail players, the current valuation of 55x FY28E Pre-Ind AS EV/EBITDA (India)—15–30% higher than Trent and Nykaa BPC—looks excessive given its much lower RoCE/RoIC of 9%/13% versus peers’ 35–40%, despite similar revenue growth, the brokerage said in a report.

The agency expects the company to deliver a robust 20% revenue CAGR over FY25–28, driven by India expansion and growing global scale.

Despite concerns over its steep valuation and mixed analyst reviews, Lenskart Solutions’ IPO—which opened for bidding between October 31-November 4—garnered bids worth ₹1.13 lakh crore and was subscribed 28.27 times.

The issue saw overwhelming demand from institutional investors, led by qualified institutional buyers (QIBs). The portion reserved for QIBs was booked 40.36 times, followed by non-institutional investors and retail investors, whose quotas received 18.23x and 7.56x bids, respectively. The employee quota was subscribed nearly five times.

One of the most closely tracked public offerings of the year, Lenskart’s ₹7,278-crore IPO comprised a fresh issue of ₹2,150 crore and an offer for sale (OFS) of ₹5,128 crore, valuing the company at around ₹69,726 crore.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)