Lenskart Lists at 3% Discount Despite 28x IPO Subscription Amid Valuation Concerns
Nov, 11 2025
On Monday, November 10, 2025, Lenskart Solutions Pvt Ltd made its stock market debut with a quiet thud — listing at ₹390 on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), nearly 3% below its ₹402 issue price. The underwhelming start came despite a staggering 28-fold subscription during its IPO window from October 30 to November 1, 2025, leaving investors puzzled and analysts scrambling to explain the disconnect between hype and reality. By day’s end, shares clawed back to ₹395, and some reports even noted a 5% recovery, but the damage to investor confidence had already been done. This wasn’t just a minor hiccup — it was a signal that India’s retail investor fervor for consumer-tech IPOs may be cooling, and valuations are no longer immune to scrutiny.
Why the Disconnect Between Subscription and Listing?
The numbers told two stories. On one hand, the IPO was oversubscribed 28 times — a sign of massive retail and institutional enthusiasm. On the other, the grey market premium, which had peaked at ₹108 above the issue price just weeks earlier, evaporated to zero by listing day. That’s not just a drop — it’s a collapse. What happened? Market sentiment shifted. Investors who once saw Lenskart as the next Nykaa began asking harder questions: At ₹402, was this company really worth ₹70,000 crore? And more importantly, could it ever earn its way to that valuation?Valuation Metrics That Raised Eyebrows
According to SBI Securities, Lenskart’s pricing placed it at a jaw-dropping 10.1x FY25 EV/Sales and 68.7x EV/EBITDA. Compare that to Titan Company Limited, trading at roughly 3.5x EV/Sales and 25x EV/EBITDA, or Trent Limited at 4.2x and 28x. Even Nykaa, often cited as India’s most overvalued beauty retailer, sat at 7.8x and 55x — still below Lenskart. These aren’t just numbers; they’re red flags. Analysts pointed out that Lenskart’s profitability remains elusive. Its unit economics, while improving, haven’t yet proven sustainable at scale. And in a post-pandemic world where investors are no longer willing to pay for growth alone, that matters.The Human Face Behind the Numbers: Peyush Bansal
For Peyush Bansal, Lenskart’s co-founder and CEO, the listing day was a moment of quiet tension. He had built the company from a small optical shop in Delhi into a tech-driven eyewear giant with over 1,000 stores and a digital footprint spanning 500+ cities. But the market doesn’t care about vision — it cares about margins. Bansal’s presentation to investors had emphasized innovation, supply chain control, and AI-powered diagnostics. But investors saw a company burning cash to acquire customers, relying on discounts to drive sales, and struggling to convert traffic into consistent profits. The listing price wasn’t a vote against Bansal — it was a vote against the assumption that tech flair alone justifies a ₹70,000 crore price tag.Market Sentiment Shifts: The End of the IPO Frenzy?
Lenskart’s debut comes at a turning point. Two years ago, IPOs like Nykaa and Zomato launched with fireworks. Today, the market is sober. After the 2023-24 rally, investors have learned to look behind the glitter. The consumer-tech sector, once seen as India’s next growth engine, is now under a microscope. Profitability timelines, customer acquisition costs, and operating leverage are the new metrics. Lenskart’s 28x subscription was a relic of the old era — a sign of FOMO, not fundamentals. The fact that the stock didn’t pop on listing day might be the first sign that India’s retail investors are maturing. Or it could be the start of a broader correction.What Happens Next?
Lenskart’s path forward isn’t over — it’s just getting real. The company will need to show, quarter after quarter, that it can reduce its reliance on discounts, improve gross margins, and drive higher average order values. Analysts are watching two things closely: the EBITDA trajectory in FY26 and whether store-level profitability improves beyond Tier-1 cities. If Lenskart can hit 15%+ EBITDA margins by 2027, the current valuation might look cheap. If not, the stock could face further pressure. The recovery to ₹395 on listing day was encouraging, but one day doesn’t make a trend. The real test begins now.Industry Context: How Lenskart Compares
Lenskart isn’t alone in facing valuation scrutiny. The entire Indian consumer-tech space has seen a recalibration. Companies that once traded at 15x sales are now trading at 5x. Even successful players like Nykaa have seen their multiples shrink. What’s different about Lenskart? It’s a physical-digital hybrid — more capital-intensive than pure-play e-commerce, but with higher customer retention potential. If it can turn its 1,000+ stores into profit centers rather than cost centers, it could become the Amazon of eyewear. But that’s a big if.Frequently Asked Questions
Why did Lenskart’s stock list below the issue price despite strong subscription?
Despite 28x subscription, investors pulled back due to valuation fears. At ₹402, Lenskart traded at 10.1x EV/Sales and 68.7x EV/EBITDA — far above peers like Titan and Trent. The grey market premium collapsed to zero days before listing, signaling that retail investors had cooled on the hype. Market sentiment had shifted from growth-at-all-costs to profitability discipline.
How does Lenskart’s valuation compare to Nykaa and Titan?
Lenskart’s 10.1x EV/Sales and 68.7x EV/EBITDA dwarfs Titan’s 3.5x and 25x, and even exceeds Nykaa’s 7.8x and 55x. While Nykaa is a digital beauty platform, Lenskart operates physical stores with higher fixed costs. Investors questioned whether its unit economics could justify such a premium, especially with profitability still uncertain.
What role did Peyush Bansal play in shaping investor expectations?
As co-founder and CEO, Bansal positioned Lenskart as a tech-driven disruptor, emphasizing AI diagnostics and supply chain control. But investors now demand more than innovation stories — they want clear paths to profitability. Bansal’s leadership remains respected, but the market is holding him accountable for translating vision into sustainable earnings, not just growth.
Is Lenskart’s IPO a sign that India’s consumer-tech IPO boom is over?
It’s a strong signal. After the 2023-24 IPO frenzy, investors are now prioritizing cash flow and unit economics over top-line growth. Lenskart’s muted debut, despite heavy subscription, suggests retail investors are becoming more selective. Future IPOs in the space will need to prove profitability timelines — not just market potential — to attract serious interest.
What are the key metrics analysts are watching for Lenskart in 2026?
Analysts are紧盯 two metrics: EBITDA margin expansion beyond 10% and store-level profitability in Tier-2 and Tier-3 cities. If Lenskart can reduce discounting, increase average order value, and improve inventory turnover, its valuation could rebound. Failure to show progress by Q4 2026 could trigger further downgrades.
Could Lenskart’s stock recover and reach its issue price again?
Yes — but only if earnings materialize. The ₹395 closing price on listing day was a technical rebound, not a fundamental recovery. To retest ₹402, Lenskart needs to deliver two consecutive quarters of improving margins and lower customer acquisition costs. Without that, the stock may trade sideways for months. The market isn’t rejecting Lenskart — it’s waiting for proof.