Lenskart’s IPO Success and Strategic Expansion Plans

New updates have been reported about Lenskart (PC:LNSKT)

Lenskart’s recent IPO, valued at ₹72.8 billion ($821 million), concluded with shares closing slightly above the offer price, despite an initial dip. The stock opened at ₹395, below the IPO price of ₹402, and briefly fell to ₹356.10 before recovering to ₹404.55, valuing the company at approximately ₹702 billion ($8 billion). The IPO was notably oversubscribed, with demand from institutional investors reaching 28 times the available shares. Lenskart’s vertically integrated business model, which spans manufacturing to retail, is a key selling point as it aims to outpace traditional optical chains and online competitors. However, the company faces significant competition across various price points, raising questions about its ability to scale profitably both domestically and internationally.

In the fiscal year ending March 2025, Lenskart reported a 23% increase in revenue to ₹66.53 billion ($750 million), with a net profit of ₹2.97 billion ($33 million), bolstered by a one-time accounting gain from its acquisition of Owndays. Excluding this gain, core profit stood at ₹1.30 billion ($15 million). The IPO valuation, which implies 230 times core net profit and 10 times revenue, has sparked debate among retail investors. Despite this, DSP Asset Managers, a pre-IPO investor, defended the valuation, highlighting the company’s strong and scalable business model. CEO Peyush Bansal emphasized the fair pricing of the IPO, with plans to use the proceeds for expansion, including new store openings, supply chain enhancements, and potential acquisitions. The IPO aligns with a broader trend of Indian startups entering public markets amid tightening venture funding and growing domestic investor interest.