Lenskart IPO GMP Halves Ahead Of Launch As Valuation Concerns Weigh — Check Details

A day ahead of the launch on Oct. 31, the grey market premium (GMP) for the initial public offering (IPO) of Lenskart Solutions Ltd. has dropped significantly. Lenskart IPO GMP has dropped nearly 50% in the last three days.

The decline in GMP is amid concerns over the eyewear company’s steep valuation, pegged around Rs 70,000 crore, which many analysts find stretched.

The IPO is a book-built issue worth Rs 7,278.02 crore. It includes a fresh issue of 5.35 crore shares, worth Rs 2,150 crore, and an offer-for-sale (OFS) of 12.76 crore shares, amounting to Rs 5,128.02 crore.

According to Investorgain, the latest GMP for the Lenskart IPO stood at Rs 46 as 10:00 a.m on Thursday. With a price band of Rs 402, the IPO’s estimated listing price stands at Rs 448 per share, reflecting an expected gain of 11.44% per share.

The latest GMP shows a sharp decline from Oct. 27, when the GMP stood at Rs 108 per share, indicating a listing price of Rs 510 with a potential gain of 26.87%.

Note: GMP does not represent official data and is based on speculation.

SBI Mutual Fund recently invested Rs 100 crore in the company at a valuation of about Rs 67,762 crore. CEO Peyush Bansal had earlier sold shares worth Rs 90 crore to DMart promoter Radhakishan Damani at the same valuation.

The company turned profitable only in FY25, reporting a net profit of Rs 297 crore. However, its Rs 70,000-crore valuation at the upper end of the price band implies a steep 237-times price-to-earnings ratio. This has raised concerns among analysts and market experts.

Many experts also outlined that the company, backed by SoftBank, Temasek, KKR and Alpha Wave, was valued at $6.1 billion by Fidelity in its April 2025 portfolio update.

Moreover, a news report from July is circulating online, in which it was suggested that Bansal took a Rs 200 crore loan just three months before the IPO to buy Lenskart shares at a Rs 8,500 crore valuation. Now, in November, he is selling part of his stake to public and institutional investors at nearly nine times that valuation.

The mainboard issue will remain open for subscription from Oct. 31 to Nov. 4. The IPO price band has been fixed at Rs 382 to Rs 402 per share. Each lot size consists of 37 shares, which means that retail investors need to invest at least Rs 14,134 to participate in the IPO.

Similarly, small NIIs can apply for a minimum of 14 lots (518 shares), amounting to Rs 2,08,236 investment at the upper end. Meanwhile, big NIIs can apply for at least 68 lots, requiring an investment of Rs 10,11,432 at the upper price end.

The IPO allotment status is expected to be finalised on Thursday, Nov. 6. The tentative listing date for the IPO has been finalised as Nov. 10. Shares of the company will be listed on the NSE and BSE.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.