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Lenskart IPO Set for Monday Debut as Grey-Market Premium Craters and Ambit Issues Sell Call

Valuation worries now overshadow the issue’s strong subscription.

Overview

  • Lenskart’s Rs 7,278.76 crore IPO, priced at Rs 402 per share, was oversubscribed about 28.3 times across categories.
  • The grey market premium has plunged from roughly Rs 108 to single-digit levels, pointing to little or no listing pop signal.
  • Ambit Capital initiated coverage with a sell rating and a Rs 337 target, citing stretched valuation, heavy capex of about Rs 2,000 crore through FY2028, and free cash flow turning positive only by FY2028.
  • Other brokerages are more constructive for the long term but flag near-term risks, with SBI Securities highlighting lofty metrics of ~10.1x FY25 EV/Sales, ~68.7x EV/EBITDA, and a P/E near 230x despite margin gains to 14.7% in FY25.
  • The stock is slated to list on the BSE and NSE on Monday, November 10, with the OFS enabling sizable exits including about Rs 823 crore for Peyush Bansal and a reported 5.4x return for SoftBank.