LensKart IPO: Should You Subscribe? Here Are The Key Risks
The eyewear company's valuation is pegged at Rs 70,000 crore, which analysts found stretched. Not only analysts, LensKart Solutions' RHP also mentioned several risks associated with the company.
LensKart Ltd.'s initial public offer opened for subscription on Friday and will conclude on Tuesday. A day before, its grey market premium plunged because of valuation concerns. The eyewear company's valuation is pegged at Rs 70,000 crore, which analysts found stretched. Not only analysts, LensKart Solutions' red herring prospectus also mentioned several risks associated with the company.
LensKart Solution is dependent on raw materials sourced from China. The raw materials form the bigger pie of the expenses it incurs during production, the RHP said. It gets raw material from Baofeng Framekart Technology Ltd.
The raw material expense was at Rs 467.34 crore or 25.45% of the total expense pie in April–June. In financial year 2025, the expense was at Rs 1,622.97 crore, according to the RHP.
Hence, any disruption in the supply chain will shake up LensKart Solutions' financial performance and operations. Advance in medical procedure to treat refractive errors and sight complications may reduce the demand for corrective eyewear, particularly in emerging markets, the RHP said.
The issue is subscribed 0.02 times so far on first day as of 10:15 a.m.
LensKart 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 of 12.76 crore shares, amounting to Rs 5,128.02 crore.
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.
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.
