Why did India's much-hyped Lenskart IPO stumble so much on debut?

Dubai: Eyewear brand Lenskart, one of India’s most talked-about IPOs this year, opened lower than expected on Monday. The stock listed at ₹395 per share, slightly below its issue price of ₹402, and quickly fell to ₹356, a drop of nearly 10%.

Later in the day, it recovered and traded close to the issue price, but the weak start surprised many after such a heavily subscribed offering.

What went wrong?

1. IPO was seen as too expensive

Analysts say investors were worried about the high valuation. Many believed the company was priced at a big premium compared to other retail firms, despite limited profits and ongoing spending plans.

“People liked the brand, but not the price,” one analyst said. The grey market premium—a signal of investor interest—had also dropped to about 2% before listing, showing that excitement had cooled.

2. Big investors didn’t push up early demand

The IPO was oversubscribed 28 times, with institutional buyers leading the charge. But after listing, these investors held on to their shares instead of buying more, leaving little support for the stock in early trading.
Retail investors, on the other hand, seemed cautious and avoided taking risks on day one.

3. Market mood wasn’t helping

Even though India’s main stock indexes were up, traders said investors were being selective. Several recent consumer-tech IPOs that started strong have since underperformed, making buyers more careful.

Lenskart plans

Founder Peyush Bansal said the money raised from the IPO will be used to open more stores, invest in technology, and strengthen the brand globally.

“We have 2,600 stores today and plan to open many more,” Bansal said.“We’ll keep investing in technology, especially as we develop new products like smart glasses.”

The company is also expanding its factory capacity to meet growing demand.

Still a long game

Despite the weak start, analysts say the poor debut doesn’t mean the company’s future is in trouble. Lenskart’s stock bounced back to ₹413.80 later in the day—up 15% from its low—showing investors still see long-term potential.

Lenskart is a leader in India’s eyewear market and wants to grow internationally. The coming months will show if it can turn that ambition into real returns.

Bottom line: Lenskart’s first-day stumble came down to high pricing and cautious investors, not weak business fundamentals. The company’s performance over the next few quarters will reveal whether this was just a slow start—or a sign that markets are demanding more realistic valuations.