Lenskart recovers from tepid open to close first day slightly above IPO price

Core Insights - Lenskart's IPO raised ₹72.8 billion ($821 million) and was oversubscribed by 28 times, but the stock initially opened below the offer price and faced valuation debates [1][2][5]. Company Performance - Lenskart reported a 23% year-over-year revenue increase to ₹66.53 billion (approximately $750 million) for the fiscal year 2025, with a net profit of ₹2.97 billion (around $33 million), aided by a one-time accounting gain [4]. - The company's core profit, excluding the accounting gain, was ₹1.30 billion (roughly $15 million) [4]. Valuation and Market Position - The IPO valuation sought by Lenskart was ₹700 billion (around $7.9 billion), representing a more than 60% increase from a secondary share sale last June, where shares were valued at approximately $5 billion [5]. - The proposed valuation implied about 230 times Lenskart's core net profit and roughly 10 times its revenue, leading to discussions about its high valuation among retail investors [6]. Competitive Landscape - Lenskart's vertically integrated model aims to outperform traditional optical chains and online competitors, but it faces competition from various price points, including established players like Titan Eye+ and new direct-to-consumer brands [3]. - The company's CEO emphasized that the focus is on reaching consumers rather than merely achieving a high valuation [7].