Lenskart, a popular Indian company that sells eyeglasses, sunglasses, and contact lenses, was all set for a big entry into the stock market on Monday, November 10, 2025. But just before the shares started trading, the excitement died down. The Grey Market Premium (GMP), which shows how much extra people are willing to pay for shares before they officially list, dropped to zero. This wiped out all the buzz that had built up. Investors who hoped for quick profits are now expecting a flat or even disappointing start.
Lenskart is an eyewear company started in 2010 by Peyush Bansal. It sells products online and in over 1,500 stores across India. The company has grown fast, with help from big investors like SoftBank. It makes money from selling glasses and lenses, and it's one of the top players in India's eyewear market. In the last few years, its sales have increased a lot, reaching about ₹6,653 crore in the financial year 2025. But it also reported some losses in the past, though it made a profit of ₹297 crore last year.
An IPO, or Initial Public Offering, is when a company sells its shares to the public for the first time to raise money. Lenskart's IPO was worth around ₹4,200 crore. It included new shares worth ₹2,500 crore and some old shares sold by existing owners for ₹1,700 crore. The price for each share was set at ₹402.
The IPO opened for people to buy shares a few days ago and closed on November 4, 2025. It was a hit—people applied for 28.26 times more shares than available. Big investors like banks and funds showed a lot of interest, applying 40 times over. Regular people also joined in strongly. The shares were allotted on November 6, 2025.
GMP stands for Grey Market Premium. It's like an unofficial market where people buy and sell shares before they officially list on the stock exchange (like BSE and NSE in India). A high GMP means people think the shares will rise in price on the first day, so there's excitement. A low or zero GMP means little or no profit expected right away.
For Lenskart, the GMP started high after the IPO closed. It peaked at ₹108, which meant shares could list 25% higher than the ₹402 price, giving quick gains. But over the weekend, it fell sharply—to ₹50, then ₹30, and finally to zero just before Monday. By early Monday morning, it was only ₹10 in some reports, but mostly zero.
High Valuation Concerns: Lenskart was valued at about ₹70,000 crore during the IPO. That's a lot compared to other similar companies like Titan or Nykaa. Experts said the price was "stretched" or too high for what the company earns. For example, it's trading at 68 times its earnings before some costs, which is more than its competitors. One brokerage, Ambit Capital, even said "sell" the shares with a target of ₹337, meaning they think it's overpriced by 16%.
Profits Look Shaky: The company made ₹297 crore profit last year, but ₹167 crore of that came from a one-time gain when it bought another company called Owndays. Without that, the real profit was only ₹130 crore, which is just 1.9% of sales. In the first quarter of this year, profits were ₹55.6 crore on ₹1,940 crore sales. Experts worry if the company can keep making steady profits without these special boosts.
Market Mood and Tired Investors: The stock market has been up and down lately due to global issues like interest rates and world events. People are getting cautious about new IPOs that seem too expensive. The hype around Lenskart built up fast, but when reality hit, the excitement cooled. Traders in the grey market started selling, causing the premium to drop.The eyewear business is competitive, with rivals like Titan Eyeplus. Lenskart plans to spend a lot (₹20,000 crore) on growth, which might hurt cash flow in the short term.
On Monday, November 10, 2025, Lenskart shares started trading at a small discount. They listed at ₹390 on BSE and ₹395 on NSE, which is about 3% below the ₹402 IPO price. This matched the low GMP predictions. Trading volumes were okay, but there was no big jump. Investors who got shares might hold them for longer-term growth instead of quick sales.
Experts have mixed views. Some, like from SBI Securities, say hold for the long run because Lenskart has a strong brand and can grow in India's eyewear market, which is still small. But others warn it's a "reality check" for overhyped IPOs. Avinash Gorakshkar from Profitmart Securities called it that, saying focus on the company's future rather than day-one gains. CEO Peyush Bansal said the company was built to help people, not chase a high value.
A zero GMP and muted listing mean no instant profits for those who bought in the IPO. But if Lenskart grows its sales (expected 20-30% per year) and improves profits, the shares could rise later. The company is expanding globally and using tech to make custom glasses. For new investors, it might be a good time to buy if the price dips more. Always check with a financial advisor before investing.In short, Lenskart's IPO started with big hype but ended with a quiet debut. It shows how market mood and company value can change fast. Keep an eye on future earnings to see if it bounces back.
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