When Lenskart Solutions shares debuted on the Bombay Stock Exchange on Monday, November 10, 2025, investors braced for a rout. The stock opened at ₹390 — a 3% discount to its ₹402 IPO price — and briefly plunged to ₹355.70 before staging a dramatic recovery. By close, it settled at ₹404.55, up 3.5% for the day. On the National Stock Exchange, it opened at ₹395, down 1.74%. The wild ride came after a stunning 90% collapse in its grey market premium, which had fallen from a peak of ₹108 to just ₹10 per share just days before listing. This wasn’t just a hiccup — it was a market verdict.
From Frenzy to Freeze: The IPO That Burned Hot, Then Fizzled
Lenskart’s ₹7,278 crore IPO, which opened on October 31, 2025, and closed on November 4, was one of the most hyped consumer offerings of the year. It drew over 32.56 lakh applications and was subscribed 28.26 times overall. Qualified Institutional Buyers (QIBs) snapped up 40.35 times the shares offered, while retail investors subscribed 7.54 times. The lot size — 37 shares — meant retail buyers had to commit ₹14,874 upfront. Even employees got a ₹19-per-share discount, a sign of internal confidence. But behind the numbers, cracks were forming.By Friday, November 7 — just three days before listing — the grey market premium (GMP) had cratered from ₹108 to ₹10. That’s not just cooling. That’s panic. Traders who’d bet big on listing-day gains started bailing. Why? Because the valuation didn’t match reality. Lenskart’s price-to-earnings (P/E) ratio for FY25 stood at a jaw-dropping 235x. Compare that to Trent (107x) or Metro Brands (88x). For a company selling eyewear, not luxury handbags, that’s a stretch.
“Too Expensive, Too Soon” — Analysts Sound the Alarm
Vakar Javed Khan, Senior Analyst at Angel One, put it bluntly: “Lenskart has a strong brand and leads India’s organized eyewear market. But this valuation? It’s a gamble. You’re paying for future dreams, not current profits.” He pointed out that despite a sharp turnaround — from a ₹10 crore loss in FY24 to ₹297 crore profit in FY25 — the market was pricing in explosive growth that hasn’t yet been proven sustainable.Angel Broking’s post-listing report was even more direct: “If you got allotted, exit. Don’t buy fresh.” It wasn’t just caution — it was a warning. The stock’s intraday high of ₹413.75 felt like a trap. The rebound wasn’t confidence. It was short-covering.
The CEO’s Counterpoint: “Market Sets the Price”
Piyush Bansal, CEO of Lenskart Solutions, remained calm. “Growth is strong. The Indian eyewear market is massive. Long-term value will follow,” he told CNBC-TV18. He added, “Valuation is set by the market.” Fair enough. But markets don’t always get it right — especially when they’re driven by hype, not fundamentals.Lenskart’s story is compelling. Founded in 2010, it now runs 2,137 stores across India and 669 overseas. Revenue hit ₹6,625 crore in FY25, up 22%. Profit jumped from a loss to nearly ₹300 crore. That’s real progress. But scaling fast doesn’t automatically justify a 235x P/E. Not when your competitors trade at half that multiple.
What Happens Next? The Next 90 Days Will Decide
The real test isn’t today’s closing price. It’s the next earnings call. Investors are watching three things: Can Lenskart maintain its gross margins? Will operating expenses stay in check? And can it grow revenue without burning cash? If the next two quarters show margin expansion — not just revenue growth — the stock could stabilize. But if costs keep rising and customer acquisition remains expensive, the 235x P/E will look even more absurd.Some analysts compare this to the 2021 IPO of Paytm — another consumer darling that surged on hype, then collapsed under valuation pressure. Others see parallels with Nykaa, which also faced a rocky debut but later found its footing. The difference? Nykaa had clearer path to profitability. Lenskart still doesn’t.
What’s clear: this isn’t over. The stock’s recovery on day one was a technical bounce, not a fundamental reset. Retail investors who bought at ₹402 are still underwater. Those who got lucky with allotment are sitting on a small gain — but the market is telling them: don’t get greedy.
Background: Why Lenskart Matters Beyond Eyewear
Lenskart isn’t just selling glasses. It’s digitizing a fragmented ₹1.2 trillion Indian eyewear market — 85% of which is still unorganized. Its omnichannel model — online + physical stores + AI-powered diagnostics — is innovative. But innovation doesn’t pay dividends. Profitability does.India’s retail sector has seen multiple IPOs in recent years — Mount Blue, Reliance Retail, Urban Ladder — and most struggled post-listing. Investors are tired of paying for “future potential.” They want proof. And Lenskart’s proof? Still pending.
Frequently Asked Questions
Why did Lenskart’s grey market premium collapse before listing?
The grey market premium (GMP) fell 90% because investors realized the IPO price of ₹402 was unsustainable. With a P/E of 235x — nearly double competitors like Trent and Metro Brands — traders feared a post-listing crash. The initial GMP of ₹108 was speculative; when reality set in, the market corrected itself before the exchange opened.
Should new investors buy Lenskart stock now?
Most analysts say no. Angel Broking explicitly advised against fresh buys. With the stock trading at 235x earnings, it’s priced for perfection. Until Lenskart shows sustained margin improvement and stable growth over 2-3 quarters, it’s too risky for long-term investors. Short-term traders might see volatility, but this isn’t a buy-and-hold candidate yet.
How does Lenskart’s valuation compare to its peers?
Lenskart’s FY25 P/E of 235x dwarfs peers: Trent trades at 107x, Metro Brands at 88x, and even online retailers like Nykaa hover around 150x. While Lenskart has faster growth and broader reach, its profitability is still nascent. Investors are paying a premium for scale, not proven returns — a dangerous mix in today’s market.
What’s the significance of Lenskart’s IPO size and subscription?
The ₹7,278 crore IPO and 28x subscription reflect massive retail and institutional interest — but also extreme speculation. High subscription doesn’t mean good investment. It means hype. Compare it to Zomato’s IPO in 2021: it was oversubscribed 77x but still dropped 10% on listing. Subscription volume measures demand, not value.
Did Lenskart’s employee discount impact the IPO’s success?
Yes. Offering ₹19-per-share discounts to employees signaled confidence internally, but it also diluted the IPO’s pricing discipline. Employees got shares at ₹383 — well below the IPO price — which raised eyebrows. While common in tech startups, it’s unusual in retail IPOs and hinted at pressure to retain talent amid a sky-high valuation.
What’s the outlook for Lenskart’s stock in the next six months?
The next two quarterly results will be decisive. If operating margins improve beyond 8-9% and revenue growth slows to a sustainable 15-18%, the stock could stabilize. But if costs rise again or customer acquisition spikes, the 235x P/E will come under renewed pressure. Analysts expect volatility — not a steady climb — in the near term.