Lenskart IPO opens at this time: Test GMP, brokerages evaluation, subscription and different particulars
Lenskart IPO GMP
The gray market premium (GMP) for the difficulty is at the moment round Rs 67, indicating an estimated itemizing achieve of about 16% over the higher worth band, suggesting near-term enthusiasm.
Enterprise overview
Lenskart has reworked from a web-based eyewear startup right into a full-fledged omnichannel retail participant. The corporate sells prescription eyeglasses, sun shades, and phone lenses by means of its web site, app, and an increasing offline community of over 2,800 shops throughout 14 nations, together with 2,137 shops in India. It additionally owns worldwide manufacturers akin to Owndays (Japan) and Meller (Spain), giving it a robust foothold in Asia and Europe.
The corporate reported FY25 income of Rs 6,653 crore, up 23% year-on-year, and a web revenue of Rs 296 crore, marking a turnaround from losses in FY24. Its EBITDA margin improved sharply to 14.7%, pushed by higher value management, sturdy branding, and premiumization.
Lenskart manufactures most of its merchandise in-house at services in Bhiwadi and Gurugram, attaining provide chain integration that helps preserve affordability whereas making certain high quality. The corporate can be constructing the world’s largest eyewear manufacturing facility in Hyderabad, which is predicted to additional strengthen its value effectivity and scalability.
Valuations and Financials
On the higher worth band of Rs 402, the difficulty is valued at a price-to-earnings (P/E) a number of of 235x FY25 earnings and an EV/EBITDA a number of of 68x, making it probably the most costly retail listings in recent times. Analysts say that whereas the valuations are wealthy, the corporate’s long-term progress prospects stay sturdy.
The Indian eyewear market—at the moment valued at Rs 78,800 crore—is projected to double to Rs 1.48 lakh crore by FY30, rising at a 13% CAGR. Rising digital adoption, higher healthcare entry, and better trend consciousness are key drivers of demand.
Use of Proceeds
The web proceeds from the contemporary difficulty might be used for organising new company-owned shops (Rs 272 crore), lease and rental funds for shops (Rs 591 crore), funding in expertise and cloud infrastructure (Rs 213 crore) and model advertising and enterprise promotion (Rs 320 crore).
Brokerage Suggestions
SBI Securities has given a “Subscribe for long run” score, citing Lenskart’s sturdy enterprise mannequin and management in an underpenetrated market. The brokerage notes that whereas the itemizing positive factors could possibly be restricted, the corporate’s built-in provide chain, enhancing profitability, and model energy present a protracted runway for progress.
Ventura Securities has additionally really helpful “Subscribe”, calling Lenskart a visionary progress story. It highlights the corporate’s excessive return potential from its technology-driven growth, AI-based buyer interface, and retailer payback interval of underneath one yr. The brokerage expects profitability to develop additional as the corporate scales and enters new geographies.
In distinction, Nirmal Bang acknowledged that the IPO appears to be like costly at first look, however believes valuations are justified when in comparison with different fashionable retailers like Trent and Metro. The agency additionally maintained a Subscribe with long-term view score, noting Lenskart’s sturdy model fairness, premium portfolio, and worldwide progress plans.
Outlook
With a GMP of Rs 67, buyers expect modest itemizing positive factors, however analysts imagine Lenskart’s story is much less about short-term pop and extra about long-term potential. The corporate’s dominance in India’s organized eyewear market, fast worldwide growth, and enhancing financials make it a strategic shopper play for affected person buyers.
(Disclaimer: Suggestions, strategies, views and opinions given by the specialists are their very own. These don’t symbolize the views of Financial Occasions)
