Lenskart Solutions IPO opens today: Should you subscribe to this issue?

The initial public offering (IPO) of Lenskart Solutions is set to open on Friday, October 31 as the omnichannel eyewear retailer is selling its shares in the range of Rs 382-402 apeice. Investors can make bids for a minimum of 37 equity shares and its multiples thereafter. The issue will close for bidding on Tuesday, November 04.

Lenskart Solutions is looking to raise a total of Rs 7,278 crore via IPO, which includes a fresh share sale of Rs 2,150 crore and an offer-for-sale (OFS) of up to 12,75,62,573 equity shares worth Rs 5,128 crore. Net proceeds from the issue shall be utilized towards capex to set up new stores, operation expenditure, investing in technology and cloud infrastructure, brand marketing, inorganic acquisitions and general corporate purposes.

Established in 2008, Lenskart Solutions is a technology-focused eyewear company involved in the design, manufacturing, branding, and retail of prescription eyeglasses, sunglasses, contact lenses, and accessories. Operating under a direct-to-consumer model, it offers a broad range of eyewear under its own brands and sub-brands, catering to all age groups and price segments.

Lenskart Solutions raised a total of Rs 3,268.36 crore from 147 anchor investors as it allocated 8,13,02,412 equity shares at Rs 402 apiece. Government of Singapore, T Rowe Price, BlackRock, Goldman Sachs, Fidelity, Wellington Management, New World Fund, Nomura, Steadview Capital, Government Pension Fund Global, JP Morgan, Amundi Funds Allspring Global Investments and others participated in the anchor book.

For the three-months ended on June 30, 2025, Lenskart Solutions reported a net profit of Rs 61.17 crore with a revenue of Rs 1,946.10 crore. It clocked a net profit of Rs 297.34 crore with a revenue coming in at Rs 7,009.28 crore for the year ended on March 31, 2025. Last heard, It was commanding a grey market premium of Rs 70-75 per share, suggesting 17-18 per cent uspide.

Lenskart Solutions has reserved 75 per cent of the net offer qualified institutional bidders (QIBs), while non-institutional investors will get 15 per cent shares. Retail investors have an allocation of only 10 per cent in the IPO. At current valuations, it shall command a total market capitalization little close to Rs 70,000 crore.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Avendus Capital, Citigroup Global Markets India, Axis Capital, and Intensive Fiscal Services are the lead managers for the issue, while MUFG as registrar. Shares of the company shall be listed on both BSE and NSE on November 10, Monday. Here's what a dozen brokerage firms say about the IPO of Lenskart Solutions:
 

BP Equities

Rating: Avoid

Lenskart's in-house manufacturing transition and focus on innovation enhance long-term scalability, near-term profitability pressures from store expansion, international investments, and marketing costs remain a concern. Additionally, intense competition from both organized and emerging online players could constrain margin expansion, said BP Equities.

"At the upper end of the price band, the issue is valued at a P/E of 227 times based on FY25 earnings, which seems expensive relative to fundamentals, a low profitability base, and execution risks in scaling international operations, warranting a cautious stance despite strong growth prospects. We, thus, recommend an 'avoid' rating for this issue," it added.

ICICIDirect Research

Rating: Subscribe for long-term

Lenskart’s vision of driving growth by providing clear vision to Indian/international customers leveraging on its well-designed integrated business model makes it a better play amongst the new age technology companies, said ICICIDirect Research.

"The unorganized dominance and lower usage of eyewear products in India compared to other countries create a significant opportunity for branded players like Lenskart to increase their market share domestically. Hence, we assign 'subscribe' rating on Lenskart from a long term view," it added.
 

Swastika Investmart

Rating: Neutral

The issue of Lenskart Solutions is valued at a P/E over 200 times and EV/sales 10 times make the IPO valuation extremely demanding with minimal margin for error. Its FY25 profit of Rs 297 crore largely stems from a one-time, non-cash accounting gain, said Swastika Investmart.

"Targeting India’s vast, under-penetrated eyewear market positions Lenskart for long-term expansion. Besides this, entry of veteran investor Radhakishan Damani adds credibility and market confidence. The company has solid business fundamentals but stretched valuations lead to a 'Neutral' rating on the IPO," it added.

Marwadi Financial Services

Rating: Subscribe with caution

"We assign 'subscribe with caution rating' to this IPO as Lenskart is the largest seller of prescription eyeglasses in terms of volumes sold in India in FY25," said Marwadi Financial Services. "However, the IPO is richly priced and it will have to continue growing its business at a high growth rate in order to justify its valuation which keeps us cautious from a long-term perspective."
 

Arihant Capital Markets

Rating: Subscribe for long-term

Lenskart Solutions aims to continue leveraging its centralized supply chain and automation to maintain cost efficiency while scaling both in India and overseas markets such as Southeast Asia, Japan, and the Middle East. Store-level metrics are healthy at 81 per cent of CoCo stores opened in FY23–24 achieved payback within 10 months, said Arihant Capital Markets.

With rising demand for vision correction and growing shift toward organized eyewear retail, it plans to deepen penetration in Tier 2 and Tier 3 cities and further strengthen its global reach through the Owndays brand. OCF jumped 13 times in 2 years to Rs 1,231 crore, and RoCE improved to 13.8 per cent in FY25. We recommend a 'subscribe for long -term' rating for this issue," it said.
 

Nirmal Bang Securities

Rating: Subscribe for long-term

Lenskart's omnichannel strategy along with centralised manufacturing suggests a resilient business model and bodes well to remain cost competitive in the highly fragmented market. Its is able to grow faster than the industry, scaling up its operations through product innovations, entering new markets, acquisitions and market share gains, said Nirmal Bang Securities.

"At FY25 P/E of 235 times and EV/Ebitda of 68 times, issue prima facie looks expensive. However, when we compare the company with other retailers like Metro and Trent, valuations seem fair. Moreover, future expansion plans and growth prospects of Lenskart, provides cushion to the valuations and thus recommend ‘subscribe’ to the issue with a long term view," it added.
 

Choice Broking

Rating: Subscribe for long-term

Lenskart's valuations appear significantly high. While the company has posted steady topline growth, profitability remains weak, with a positive PAT mainly driven by other income and lower expenses. It holds a 4-6 per cent market share in the prescription eyewear segment, dominated by unorganized players, said Choice Broking.

"Its average revenue per store has improved from Rs 1.9 crore to Rs 2.4 crore, supported by operational efficiencies and AI-driven technologies. About 40 per cent of its revenue comes from international markets. Given its strong growth potential but high valuation and profitability risks, this offering is best suited for investors with a higher risk appetite and a long-term investment horizon," it said.
 

SBI Securities

Rating: Subscribe for long-term

Lenskart is India’s largest and amongst the top 2 players in Asia in the organized retailers of prescription eyeglasses in terms of B2C eyeglasses sales volumes. It has demonstrated significant growth over the years in both financial and operational metrics. It is broadening its presence in the rapidly expanding Indian eyewear market, said SBI Securities.

"Valuation seems to be stretched and hence listing gain is likely to be muted. However, looking at the robust business model, the company is well placed to encash on the fast-growing domestic organized underpenetrated eyeglasses market. As business scales up, there is scope of improvement in profitability over medium to long term. Street will keenly track the path to profitability for Lenskart too," it added with a 'subscribe' for long-term' rating.
 

KR Choskey Research

Rating: Subscribe

Lenskart dominates India’s organized eyewear market with a hybrid omni-channel model and tech moat, poised to capture 30 per cent share in a $13.6 billion TAM by 2030. However, decelerating growth, reliance on one-time profits, and high capex needs warrant caution. Strong founder-led execution and global partnerships mitigate risks, said KR Choksey Research with a 'subscribe' rating.
 

SMIFS

Rating: Subscribe for long-term

"We recommend subscribing to the issue given Lenskart’s profitability recovery, 65 per cent penetration headroom in India’s 777 million affected population, technology-led 10-month store payback, and sustainable competitive advantages offering compelling value creation in India’s fastest-growing eyewear retail sector, a high-risk, high-potential opportunity for long-term investors," said SMIFS.
 

Ventura Securities

Rating: Subscribe

Lenskart's balance sheet has strengthened, with net worth standing at Rs 6,206.2 crore as of March 31, 2025, and a reduction in total borrowings, said Ventura Securities. "The proceeds from the fresh issue will be utilized by Lenskart for business expansion, including opening new stores, investing in technology infrastructure, and funding marketing activities," it said with a 'subscribe' tag.