Lenskart Solutions started trading on Dalal Street at a discount to the issue price. The BSE opened the stock with a 2.99% discount to the issue price of Rs 402, which was Rs 390. It began trading in NSE at a discount of 1.74% at Rs 395. The market expectations for the performance were not met; yet, the public issue recorded high subscription rates within the offer period.
The company had provided shares in a range of Rs 382 to Rs 402 and sought to raise 7,278 crore. This encompassed a fresh issue and an offer-for-sale of over 12.75 crore shares and Rs 2,150 crore. The IPO was carried out between October 31 and November 4. Lenskart Solutions is a technology firm that deals in eyewear branding, manufacturing, and retailing.
The stock's poor initial performance matched a steep downward adjustment in its grey market premium before listing. The price fell between Rs 6 and Rs 8, indicating a low listing premium. The grey market had previously shown greater demand sentiment, and the deterioration was an indication of lower expectations among traders before the listing.
The notional loss for retail investors who were allotted one lot of 37 shares was Rs 444 at the opening price. The notional loss incurred by HNI investors who received 14 lots, equivalent to 518 shares, exceeded Rs 6,000. As observed by analysts, the reduced debut led investors to be cautious about business ventures that required large capital.
The IPO registered a total subscription of 28.26 times the offer size. The QIB part was well demanded and closed 40.35 times. The NII category was at 18.23 times, and the retail subscriptions were 7.54 times. There was also high interest in employee participation, and the offer closed at 4.95 times the original amount.
Before the listing, the brokerage perceptions about the stock were divided. Ambit initiated a sell rating and targeted a price of Rs 337. The company mentioned issues related to cost structure and returns expected in the firm. The other lead managers involved in the matter were Kotak Mahindra Capital, Morgan Stanley India, Avendus Capital, Citigroup Global Markets India, Axis Capital, and Intensive Fiscal Services.