Post by : Badri Ariffin

Lenskart Solutions Ltd, a leader in the eyewear industry, experienced a slow opening on the stock exchange on Monday, as its shares listed below the initial public offering (IPO) price, catching both retail and institutional investors off-guard. This lukewarm reception came despite a robust subscription rate of 28.26 times during the IPO period from October 31 to November 4.

The stock opened at Rs 395 on the NSE, reflecting a decline of 1.74% from the upper price band of Rs 402 for the IPO. Meanwhile, on the BSE, the shares debuted at Rs 390, nearly 3% lower than the IPO price. The company's market capitalization post-listing was approximately Rs 67,659.94 crore.

The IPO, which was pegged at Rs 7,278 crore with a price range of Rs 382-402, initially fueled hopes for a premium listing. However, a grey market estimate suggesting a 2% premium turned out to be overly optimistic, indicating a degree of hesitance among investors.

While Lenskart maintains a commanding presence in the Indian eyewear market, factors such as inflated valuations, recent losses, and rising competition may have led to this lackluster debut. The company plans to utilize the IPO funds for expanding its network of company-operated stores (CoCo stores), enhancing technology, bolstering marketing efforts, and possibly engaging in strategic acquisitions.

Analysts believe that despite the initial trading challenges, Lenskart possesses significant growth potential in the medium to long term, thanks to its established brand, international expansion strategies, and commitment to improving profit margins.

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