Eyewear retailer Lenskart’s IPO, valued at nearly ₹70,000 crore (approx. $8 billion), has stirred intense debate among market analysts and investors. Although the issue sold out within five hours due to strong demand, experts caution that the stock’s valuation metrics may be excessively stretched.
Concerns About High Valuation Lenskart IPO
At the top of the price band (₹402 per share), Lenskart’s P/E ratio stands between 230 and 285 times. This number is much higher than global peers.
Analysts question whether the company’s future profits can justify such a large premium. They recall similar issues with Zomato and Paytm, which struggled after their IPOs because of limited profits and high valuations.
Many mutual funds are now under scrutiny for investing in startups with thin profit margins. Experts warn that paying high prices for loss-making tech firms could hurt investor returns over time.
Why Investors Still Believe in Lenskart
Even with concerns, Lenskart holds a dominant position in India’s eyewear market. The company runs 2,800 stores and operates both online and offline.
Its revenue grew 22.6% year-on-year in FY25, backed by investors like SoftBank, TPG, and Radhakishan Damani. CEO Peyush Bansal, known from Shark Tank India, continues to drive the brand’s global growth.
Analysts believe India’s eyewear market still has room to expand. Lenskart’s technology-driven business model supports long-term growth. However, they caution investors to stay patient and focus on long-term value rather than quick gains.
Impact on India’s Startup Market
The IPO has reignited talk about overpriced startup listings. Analysts compare it to Paytm’s IPO, which dropped 27% on debut.
Data shows that half of India’s startups listed since 2021 now trade below their issue price. This trend could push investors and companies to use more realistic pricing for future IPOs.
Conclusion
Lenskart’s IPO marks a landmark in India’s consumer-tech sector but also highlights growing investor anxiety over overvalued tech listings.
While the company’s growth story remains compelling, analysts urge investors to stay focused on long-term fundamentals rather than short-term listing excitement.
