Lenskart Shares List at 3% Discount: Should You Sell or Hold After the Muted Debut?

Eyewear major Lenskart made a muted debut on Dalal Street, disappointing investors who had expected a blockbuster listing after a highly subscribed IPO. The stock opened at ₹395 on NSE, about 1.7% below its issue price of ₹402, and ₹390 on BSE, marking a 2.98% discount.

This underwhelming listing comes despite the company’s strong fundamentals and overwhelming investor response during the IPO phase, signalling a mismatch between investor expectations and market sentiment.

IPO Recap: Strong Demand, But Grey Market Signals Weakness

The ₹7,278-crore IPO, open between October 31 and November 4, drew significant attention across investor categories. The issue was subscribed over 28 times, reflecting robust demand from both institutional and retail participants.

• QIB (Qualified Institutional Buyers): 45.2 times

• Non-Institutional Investors (NIIs): 18.23 times

• Retail Investors: 7.54 times

• Employee Quota: 4.96 times

However, in the days leading up to the listing, the grey market premium (GMP)—which initially hovered around ₹95—fell sharply, indicating waning optimism. Analysts attribute this to concerns over valuation, short-term profit booking, and overall market caution.

Why Did Lenskart’s Listing Disappoint?

Despite the excitement surrounding the IPO, valuation concerns weighed heavily on sentiment. With a post-listing market capitalisation near ₹70,000 crore, analysts argue that Lenskart’s pricing left limited room for immediate upside.

Moreover, traders who had bet on listing gains exited early, adding selling pressure. Market watchers also pointed out that the collapse in GMP suggested that expectations had overshot fundamentals.

“The issue was aggressively priced. The company has strong fundamentals but investors were looking for near-term listing gains, which did not materialise,” said a market analyst from Mumbai.

Company Fundamentals Remain Strong

Analysts remain optimistic about Lenskart’s business model and growth potential, even if the stock’s debut lacked sparkle.

According to Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, the company’s strengths lie in its vertically integrated structure, in-house production capabilities, and deep market penetration.

“Lenskart’s premium brand positioning, subscription-based revenue model through Lenskart Gold, and focus on Tier-II and Tier-III markets make it a category leader in India’s organised eyewear space,” Nyati said.

She added that while short-term sentiment is weighed down by high valuation and competition, institutional confidence remains strong due to expectations of international expansion and margin improvement.

Sell or Hold? What Investors Should Consider

Market experts are divided, but the consensus leans towards holding for the medium to long term if investors believe in the company’s growth story.

For long-term investors, the company’s focus on innovation, technology, and retail expansion makes it a promising bet in India’s rapidly growing eyewear segment, which still remains underpenetrated.

Short-term traders, however, may find limited upside in the near term due to valuation pressure and profit booking.

Analysts recommend:

• Hold for the medium to long term, supported by growth visibility.

• Maintain a stop-loss around ₹350 to manage downside risk.

• Short-term traders can consider exiting positions and re-entering at lower levels once the stock stabilises.

“The stock’s muted listing doesn’t undermine its long-term story. Lenskart remains well-placed to grow its market share in India and abroad. Investors should stay patient and let the fundamentals play out,” said another equity research analyst.

The Bigger Picture

Lenskart’s IPO adds to the growing list of consumer-tech listings in 2025, reflecting investor appetite for digital-first, asset-light businesses. However, its debut highlights the cautionary mood of the broader market amid global economic uncertainty and inflation concerns.

The company plans to use the IPO proceeds to expand retail operations, enhance technology infrastructure, and boost marketing, reinforcing its position in both Indian and international markets.

Bottom Line

While Lenskart’s market debut may have underperformed expectations, its business fundamentals remain solid. For investors willing to ride short-term volatility, the company’s brand strength, omnichannel strategy, and growth runway make it a long-term contender in India’s consumer-tech landscape.

In short, hold if you’re patient — sell only if you came for quick listing gains.