Key facts about the Lenskart IPO
- Lenskart has fixed its IPO price band at ₹382–₹402 per share.
- The company aims to raise roughly ₹7,278 crore via the offer (including fresh issue and offer-for-sale).
- The IPO opens for subscription from 31 October to 4 November 2025.
- The company is seeking a valuation of approximately US$7.9 billion (~₹69,500+ crore) using the upper end of the price band.
What is GMP and how does it apply here?
GMP, or grey-market premium, refers to the unofficial price at which shares of an upcoming IPO are traded in the “grey market” (outside the regulated stock exchanges), typically indicating expected listing gains. It is not an official figure and has no regulatory guarantee, but it is closely watched by investors and analysts for sentiment.
In the case of Lenskart:
- Reports show the GMP rising to ₹85 on 3 November, suggesting an implied listing price of around ₹487 (based on upper price band ₹402 + ₹85), which translates to an estimated 21% listing gain.
- Other sources show a slightly lower GMP of ₹65 for the same day, yielding an implied listing gain of ~16%.
Therefore, the GMP range being reported lies between ₹65-₹85, implying expected listing gains in the range of 16-21% over the upper band price.
Significance and impact for Indian investors
- Market sentiment indicator: A relatively high GMP suggests strong demand and positive sentiment among pre-listing investors. For retail investors, a GMP of ~₹85 signals confidence that the stock may list at a meaningful premium.
- Valuation caution: Despite strong GMP, several analysts have flagged concerns. While Lenskart’s business shows growth and a large market opportunity, the valuation is considered aggressive (e.g., P/E and EV/Sales multiples high) and leaves limited margin for error.
- Broker recommendation angle: For many brokers the GMP acts as a “listing gain hedge” for retail applicants. Some may suggest participation for listing gains rather than for long-term value, especially given the valuation risk. Investors should separate the “listing pop” expectation from the company’s long-term prospects.
- Secondary sale heavy: A significant portion of the IPO is an offer-for-sale (OFS) by existing investors rather than fresh capital entirely for growth. This may influence how the market views the issue.
Things investors should watch out for
- Final GMP at listing day: GMPs fluctuate daily. A sustained drop in GMP leading up to listing may signal waning sentiment.
- Subscription levels vs GMP: High GMP combined with strong retail or institutional subscription suggests alignment of expectation with demand. For Lenskart, reports show ~1.82 times subscription on Day 2.
- Actual listing price vs implied: GMP gives an implied price; actual listing may differ based on market conditions and demand.
- Company fundamentals vs valuation: Even with strong growth, investors should weigh the premium being paid today. Overshooting fair value may lead to correction risk.
- Lock-in periods and promoter holdings: Understand how much promoter/early investor stock is being sold and what the lock-in rules are for fresh issue and OFS shares.
Final takeaway
For Indian investors looking at the Lenskart IPO, the current GMP suggests a potential listing gain of ~16-21% over the upper end of the price band. While this is encouraging for short-term listing participation, the premium valuation calls for circumspection if the intent is long-term investment. Retail subscribers should clearly distinguish between “getting the allocation for listing gains” and investing in a business for years.
In summary: strong market interest and favourable sentiment are visible via GMP, but prudent investing still demands a clear understanding of business fundamentals, valuation and one’s own investment horizon.
Also read:National Testing Agency (NTA): Role, Recent Issues and What Indian Students Should Know
Last Updated on: Monday, November 3, 2025 3:46 pm by Sakethyadav | Published by: Sakethyadav on Monday, November 3, 2025, 3:46 pm | News Categories: Business
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