Lenskart shares have a quiet beginning and are listed on the Indian stock market at a 3% discount to their issue price.

Lenskart IPO listing: The largest eyewear retailer in India made a muted debut on Monday, November 10, when shares of Lenskart Solutions listed at a discount, falling short of market expectations. In just one week, Lenskart has become the third consecutive initial public offering (IPO) to experience a subpar listing on Dalal Street.

Lenskart IPO listing: The largest eyewear retailer in India made a muted debut on Monday, November 10, when shares of Lenskart Solutions listed at a discount, falling short of market expectations. In just one week, Lenskart has become the third consecutive initial public offering (IPO) to experience a subpar listing on Dalal Street.

The initial public offering (IPO) price of ₹402 was discounted by 2.99% to ₹390 when Lenskart shares were listed on the BSE. In the meantime, Lenskart shares debuted at ₹395 on the NSE at a 1.74% discount.

The most recent grey market premium (GMP), which suggested a listing pop of more than 2%, indicated that the listing was below expectations. Today's Lenskart IPO GMP was ₹10, a 2.49% premium.

This IPO appears to be more sentimental than structurally appealing in an industry that is still highly price-sensitive and fragmented. Investors seeking listing profits may be in for modest returns, despite the impressive subscriber figures. Prior to the listing, Harshal Dasani, Business Head at INVAsset PMS, said, "The excitement is real — but so are the risks."

Details of the Lenskart IPO

Despite a robust subscription of more than 28 times during the IPO, Lenskart's poor stock market debut coincides with worries about the valuations the business is seeking.

Bids for 281,88,45,629 shares of the ₹7,278-crore IPO were 28.26 times higher than the 9,97,61,257 shares that were offered.

The Qualified Institutional Buyers (QIBs) quota received 40.35 times the subscription rate across the investor categories. Retail investors received 7.54 times as many subscriptions as non-institutional investors, who received 18.23 times.

With a target valuation of ₹69,700 crore at the upper end of the price range, Lenskart IPO shares were sold for between ₹382 and ₹402 each.

The company's promoters and investors offered to sell ₹12.75 crore worth of shares in addition to ₹2,150 crore worth of new shares during the IPO.

The proceeds from the new issuance will be used by Lenskart to finance a number of strategic projects, such as capital expenditures for the establishment of additional company-owned and company-operated (CoCo) stores throughout India and payments for lease, rent, and license agreements for these establishments.

In order to increase brand awareness, the company also intends to invest in cloud infrastructure, technology, brand marketing, and promotional initiatives. Potential inorganic acquisitions and other general corporate uses may potentially be made using the money.

One of the biggest omni-channel eyewear stores in India, Lenskart was established in 2008 and provides a vast selection of contact lenses, sunglasses, and prescription eyeglasses. The company operates internationally in Southeast Asia and the Middle East and is present in metro, tier-1, and tier-2 locations.

The offer's book-running lead managers were Kotak Mahindra Capital Company, Morgan Stanley India Company, Avendus Capital, Citigroup Global Markets India, Axis Capital, and Intensive Fiscal Services.