Lenskart’s Grey Market Premium Slides Nearly 55% Ahead of IPO Listing

Shares of eyewear retailer Lenskart Solutions Ltd on Thursday were trading at 12% premium in the grey market, an informal market where IPO-bound shares are traded before official allotment and continue to change hands until listing. Investors often see the grey market premium (GMP) as an indicator of expected listing-day gains.

Its GMP has slipped from ₹108 to ₹48 in just three days. While market analysts predict decent listing gains from Lenskart IPO, the decline in its premium signals a softening in investor sentiment ahead of the debut tomorrow, Friday.

"The dip in Lenskart’s GMP reflects investor caution over its premium valuation and near-term market sentiment. At the upper end of its price band, the IPO is valued at an EV/Sales of 9.9x (TTM), which appears relatively high," said Ratiraj Tibrewa, director of Choice Capital.

While the company has demonstrated consistent revenue growth and improved store productivity through operational efficiencies and AI-driven technologies, Tibrewa says that profitability remains modest.

"Despite these short-term concerns, Lenskart’s strong brand, growing international presence, and scalable omnichannel model continue to support its long-term growth potential," he adds.

Lenskart will raise up to 7,278.02 crore through its IPO at a valuation of ₹69,741 crore post-issue. The offer comprises of ₹2,150 crore fresh issue and an offer for sale (OFS) of 127.5 million shares by promoters and investors.

The OFS will include stakes from founder and CEO Peyush Bansal, SoftBank's SVF II Lightbulb (Cayman), Kedaara Capital, ChrysCapital's PI Opportunities Fund II, KKR's MacRitchie Investments, and Alpha Wave Ventures.

The start-up, backed by SoftBank Group Corp, will offer shares at 382-₹402 apiece, with 10% of the offer earmarked for retail investors. The minimum bid size is one lot of 37 shares, requiring a minimum investment of ₹14,874.

Anchor investors can bid for Lenskart shares today, while the public subscription will begin tomorrow. The bidding will conclude on November 4.

Lenskart proposes to utilise the proceeds from the IPO for various strategic initiatives, including capital expenditure for setting up new company-operated, company-owned (CoCo) stores in India; payments related to lease, rent, and license agreements for these CoCo stores; investments in technology and cloud infrastructure etc.

The company says it intends to add 620 new stores by FY29; the remainder of proceeds will fund acquisitions and general corporate purposes.

The new-age company has maintained profitability in the first quarter of financial year 2025-26. The eyewear giant posted a net profit of ₹61.2 crore in Q1 FY26, moving away from a loss of ₹11 crore incurred in the same quarter previous year. The company attributed the profits to an uptick in its top line and improvement in margins.

Its operating revenue stood at ₹1,894.5 crore. This marked nearly 25% jump from ₹1,520.4 crore revenue recorded in the same quarter last fiscal year. The company’s sales of goods grew 27% (year-on-year) to ₹1,822.2 crore, while its revenue from sales of services increased 98% to ₹67.4 crore.