Due to its massive subscription numbers and the abrupt decline in its grey market premium (GMP), the eagerly awaited Lenskart IPO has garnered a lot of attention in recent weeks. The market is now watching to see if the weak GMP portends a muted launch for Lenskart’s initial public offering (IPO), with the allocation finalization set for November 6 and the listing date set for November 10.
Subscription to Lenskart’s IPO: A Good Beginning
When the subscription period for the Lenskart IPO opened on October 31, it was greeted with tremendous excitement. It attracted strong demand from both institutional and retail investors, achieving an impressive total subscription of 28.27 times by the close on November 4. In particular, Qualified Institutional Buyers (QIBs) made 40.36 subscriptions, Non-Institutional Investors (NIIs) made 18.23 subscriptions, and retail investors made 7.56 subscriptions. This strong reaction demonstrates Lenskart’s strong brand equity and dominant market position in India’s rapidly expanding eyewear industry.
GMP Decline Sends Warning Signs
However, despite the impressive subscription figures, the Lenskart IPO story has taken a different turn in the unofficial market. The IPO’s grey market premium — a key sentiment gauge among traders — witnessed a sharp fall, sliding to just Rs 42 as of November 5. This is a substantial drop from earlier highs, reflecting waning investor enthusiasm and prompting speculation of only a modest listing gain. Based on the Lenskart IPO price band of Rs 382–402 per share, the current GMP implies an estimated listing price around Rs 444, which would mean a gain of just about 10.45% — a far cry from earlier expectations.
Reasons Behind the GMP Slide
Market analysts attribute the Lenskart IPO GMP decline to several factors. First among them is valuation concern — Lenskart IPO is seen as aggressively priced, with little room for error. Additionally, broader stock market volatility and a cautious outlook given global uncertainties have also made grey market traders more conservative. Experts warn that high oversubscription numbers don’t always guarantee strong listing gains. Market participants may be shifting focus from short-term speculation to underlying company fundamentals.
Details of the Lenskart IPO
The Lenskart IPO is a book-built issue worth Rs 7,278.02 crore. It consists of a fresh issue of Rs 2,150 crore (5.35 crore shares) and an offer-for-sale of Rs 5,128.02 crore (12.76 crore shares) by existing shareholders. The IPO price band is set between Rs 382 and Rs 402. The minimum lot size is 37 shares, with a minimum investment threshold of Rs 14,874 for retail participants. The IPO will list on both BSE and NSE, with the listing date scheduled for November 10.
Is a Weak Debut Likely?
With its GMP having fallen to less than half of its previous level, a weak debut for the Lenskart IPO cannot be ruled out. The present GMP trend signals reduced enthusiasm and muted upside prospects at listing. That said, Lenskart remains a recognized omni-channel eyewear leader, and its long-term prospects will depend on continuing execution, profitability, and how well its rich IPO valuation can be justified in the market.
In summary, while the Lenskart IPO saw a spectacular subscription and remains a growth story to watch, its sharp GMP drop on the eve of listing has tempered expectations for immediate post-listing gains. Investors should remain alert to further market signals as the listing date approaches.
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