What we can learn from the Lenskart IPO’s volatile debut

Dubai: Lenskart’s listing on the Mumbai exchange delivered one of the most closely watched debuts of the year, with the stock fluctuating sharply as investors weighed strong demand against concerns about stretched valuations. The eyewear retailer, backed by SoftBank and founded by “Shark Tank India” judge Peyush Bansal, raised ₹72.8 billion in an offering that drew subscriptions 28 times the shares on offer.

The stock opened at ₹395, slipped to ₹356 within minutes, then recovered to trade near the ₹402 issue price. It closed modestly higher, even as questions continued to circulate about whether the premium placed on the company was justified.

A valuation gap too wide for some investors

Lenskart entered the market at a valuation almost 238 times its last fiscal year’s earnings. By comparison, the benchmark BSE Consumer Discretionary index trades at 42 times earnings. The gap prompted Ambit Capital to initiate coverage with a sell recommendation.

The aggressive pricing also ignited a wider debate across social media, where criticism of the valuation became intense enough that DSP Asset Managers publicly defended its position. The firm said Lenskart’s business was “strong and scalable,” but acknowledged the deal was “expensive.”

Investors hold back despite heavy subscription

Despite the strong institutional subscription, early trading saw limited follow-through buying. Analysts said the caution reflected fatigue after several consumer-tech listings that initially performed well but later drifted.

The grey-market premium had fallen to about 2% in the days before the debut, indicating softer enthusiasm.

Retail participation was also subdued, with traders opting to wait rather than chase an already expensive name on day one.

India’s IPO boom is lifting all valuations, not just Lenskart’s

Lenskart’s debut comes at a time when India is drawing record fundraising activity. Nearly $17 billion has been raised in 2025, placing the country among the world’s busiest listing markets. Deep domestic liquidity and a fast-growing retail base have pushed investors toward consumer-facing names, often at higher valuations than seen in other emerging markets.

This backdrop matters because Lenskart is entering a market already primed for aggressive pricing. It sits in a pipeline that includes Groww’s parent company and Pine Labs, two of the most anticipated listings this year. Its post-listing valuation of about ₹700 billion, now higher than several long-established consumer brands, suggests the premium reflects the broader cycle rather than company fundamentals alone.

Execution will now matter more than brand power

Despite the early volatility, Lenskart’s long-term narrative remains centred on scale. The company has outlined a plan to grow its network of 2,600 stores, expand manufacturing and continue investing in technology, including areas such as smart eyewear. The IPO gives it the balance-sheet strength to accelerate that strategy.

The takeaway for investors is that the next phase will be driven by execution. Lenskart already dominates India’s eyewear market. The question now is whether it can translate that advantage into sustained profitability at a valuation that assumes rapid expansion in both India and overseas markets.

Long-term view still intact

Analysts say the volatile debut is not a reflection of the company’s underlying prospects but rather an indication of how sensitive investors have become to valuation risk. The stock’s rebound to ₹413.80 rupees later in the day, up 15% from its low, suggested that the market still sees long-term potential.

Lenskart’s trajectory over the next few quarters will determine whether the weak start was a short-term reaction to pricing or a signal that investors are demanding more discipline from India’s next generation of consumer-tech listings.