Indian eyewear giant Lenskart Solutions has made its market debut on stock exchanges following a highly anticipated public offering, but the listing was notably muted.
Despite facing prior criticism regarding its valuation, the company’s shares opened at a discount compared to the issue price, disappointing investor sentiment. On the BSE, Lenskart listed at ₹390, marking a 2.99% discount against its issue price of ₹402. This performance was below market expectations, particularly considering the overwhelming interest during the subscription period.
The Initial Public Offering (IPO) received a strong overall subscription of 28.26 times. The issue was significantly backed by Qualified Institutional Buyers (QIBs), whose portion was subscribed 40.35 times. Non-Institutional Investors (NIIs) subscribed 18.23 times, and the Retail Individual Investors (RIIs) portion saw a subscription of 7.54 times. The robust demand across all categories underscored investor belief in Lenskart’s long-term business model and market leadership, making the initial listing discount a point of considerable discussion.
The IPO proceeds are crucial for Lenskart’s aggressive growth trajectory. As per earlier commitments, the capital raised will be utilized for the company’s expansion plans, including opening new stores, upgrading infrastructure, leasing, renting, and expanding marketing activities. Currently operating over 2,500 stores, Lenskart intends to utilize various models to establish new retail locations, further cementing its position as India’s largest eyewear retailer.
A key part of the company’s future strategy involves significant investment in Research and Development (R&D) and technology upgrades. This investment is vital for maintaining Lenskart’s tech-enabled omni-channel dominance and enhancing its customer experience. The company presently serves more than 10 million consumers and is focused on substantially expanding this base.
While the initial listing was subdued, the successful capital raise provides Lenskart with the necessary resources to execute its long-term vision of market leadership and technological evolution in the global eyewear industry.
