Lenskart Solutions made a muted trading debut on Monday as stretched valuations clouded the outlook for shares of India's largest eyewear retailer.
The stock was at Rs 392.3 as of 10:07 a.m. IST, valuing the eyewear retailer at Rs 676.25 billion rupees ($7.69 billion). Rival Titan commands a valuation of $37.7 billion.
Lenskart's $828 million IPO, one of the largest in India this year, was lapped up by investors on the first day of bidding, with total bids - including the so-called anchor book - surpassing $13 billion.
Its trading debut comes in a busy primary market, with other technology-driven companies like stock broker Groww, edtech company PhysicsWallah and fintech firm Pine Labs in the process of listing their shares.
Lenskart's shares, which were issued at Rs 402, fell as much as 11% to Rs 356.1.
"Lenskart looks good from a business model perspective, but at the right valuation which is much lower than the current levels," said Ambareesh Baliga, an independent market analyst.
Lenskart turned profitable in financial year 2025 and reported a 23% rise in revenue to Rs 66.53 billion.
"The (weak) listing shows the importance of looking at the valuation and not to go blindly by grey market premium or oversubscription to apply for an IPO," Baliga said.
The premium for company's shares in the grey market was as high as 108 rupees ahead of the IPO.
Baliga added that this sort of listing, especially after strong subscription, could affect retail investor participation in upcoming IPOs.
Lenskart's IPO comprised of a fresh issue of Rs 21.5 billion and an offer for sale of Rs 51.3 billion.
