Indian eyewear retailer Lenskart Solutions (LENS.NS) made a subdued trading debut on Monday, with investors questioning its stretched valuations. The stock opened at 392.3 rupees, valuing the company at $7.69 billion. This marks a contrast to its rival Titan (TITN.NS) which holds a valuation of $37.7 billion in the market.
The company recently concluded its $828 million IPO, one of the largest offerings in India this year, which received an overwhelming response from investors. The total bids, including the anchor book, surpassed $13 billion. Despite the initial hype, Lenskart's shares dropped by 11% from the IPO price of Rs 402 to Rs 356.1.
Analysts like Ambareesh Baliga, an independent market expert, have highlighted the need for evaluating companies based on their business model and valuation rather than blindly following market trends. Lenskart, which became profitable in the financial year 2025, showed a 23% increase in revenue, reaching 66.53 billion rupees.
The weak listing and the subsequent drop in share price emphasize the importance of prudent investment decisions. Baliga cautioned that such developments could impact retail participation in future IPOs, urging investors to make sound judgments based on company fundamentals.
The company's IPO had a mix of fresh issue and offer for sale, totaling 21.5 billion rupees and 51.3 billion rupees, respectively. Despite the initial market response and high premium in the grey market prior to the IPO, Lenskart's trading debut has raised concerns about the sustainability of its valuation in the long run.
As Lenskart navigates the market fluctuations, the spotlight remains on how the company will chart its course and maintain investor confidence in the midst of evolving market dynamics.
