Indian eyewear retailer Lenskart Solutions Ltd finally hit the market on Monday amidst much fanfare; it turned out to be a low-key first day of trading. The stock started trading on the BSE at Rs. 390, approximately 2.99% below the issue price of Rs. 402 per share, while it began trading on the NSE at Rs. 395, representing a 1.74% discount.
Although it recovered somewhat during the session to close at around Rs. 403.3, just above the IPO price, the performance fell short of the gains many investors had expected. The IPO itself generated strong investor interest: the Rs. 7,278 crore offering was subscribed approximately 28 times overall.
Pre-listing sentiment, as captured by the grey market premium, had hinted at upside but cooled off significantly ahead of the listing. At one point, GMP had suggested gains of as much as ~25 %, but on listing day, this had fallen to around Rs. 10 over the issue price. It's believed that the subdued debut is mainly due to concerns about valuation rather than a lack of investor interest.
Analysts had already flagged the stretched price-to-earnings multiple of more than 230 times and stressed the capital-intensive nature of Lenskart's growth. At the time of listing, the company's market valuation was approximately US$7.6–7.7 billion.
Though the strong business model and growth story of Lenskart remain intact, the listing signals that investors are being more cautious in the current market, especially where valuations are lofty. The modest debut may temper expectations for near‑term gains; long‑term prospects stay intact for those comfortable with risks.