Lenskart Shares Bounce Back, Close Above IPO Price

Lenskart Shares Recover from Tepid Start, Close Slightly Above IPO Price Lenskart, the Indian eyewear retailer, saw its shares recover from a soft start to finish slightly above the offer price on Monday, following its highly anticipated 72.8 billion (821 million) IPO. The company's stock opened at 395, below the IPO price of 402, and fell as much as 11 to 356.10 during the session before recovering to close at 404.55. This closing price valued Lenskart at about 702 billion (around 8 billion). The IPO was heavily oversubscribed, with bids coming in at about 28 times the shares available, primarily led by institutional investors. Lenskart's vertically integrated model, which controls everything from manufacturing to retail stores, was a key selling point for investors. This model is expected to outpace legacy optical chains and online rivals, according to the company's pitch to investors. However, the 15-year-old company faces significant competition across price points from established players like Titan Eye and new direct-to-consumer players. This raises questions about how quickly Lenskart can scale profitably in India and overseas. Despite these challenges, the company reported a profit in the fiscal year 2025, with revenue rising 23% year-over-year to 66.53 billion (about 750 million). Net profit came in at 2.97 billion (around 33 million), boosted by a 16% increase in gross margin. Lenskart's IPO has significant implications for the Indian retail industry, which is expected to continue growing in the coming years. The company's vertically integrated model is seen as a key differentiator, allowing it to control costs and improve efficiency. However, the company's ability to scale profitably will be closely watched by investors and analysts. As Lenskart looks to expand its operations in India and overseas, it will face intense competition from established players and new entrants. The company's ability to innovate and adapt to changing consumer preferences will be critical to its success. With a strong brand and a proven business model, Lenskart is well-positioned to capitalize on the growing demand for eyewear in India and beyond. In terms of product details, Lenskart offers a wide range of eyewear products, including prescription glasses, sunglasses, and contact lenses. The company's online platform allows customers to browse and purchase products from the comfort of their own homes, while its retail stores provide a more personalized shopping experience. With its strong online presence and expanding retail network, Lenskart is well-positioned to become a leading player in the Indian eyewear market.