Lenskart IPO: GMP Falls 70% Before Listing; Analysts Cite High Valuation and Weak Market Mood
Tata Capital IPO Listing Price, Key Risks & Investor Analysis | October 2025
Analysts say high valuation and weak market sentiment may limit listing gains, even as the company reports rising profits and strong growth.
The IPO of Lenskart – among the biggest consumer-sector listings of the year – has seen a sharp drop in its grey market premium (GMP), falling about 70% before its official stock market listing.
Despite strong investor interest in the IPO itself (oversubscription of 28.3 times overall), the steep fall in the GMP shows caution among traders about large listing gains.
Analysts point to Lenskart’s high valuation and soft secondary market conditions as reasons for the muted enthusiasm. One brokerage noted that the firm’s valuations (around 10.1 × EV/Sales and 68.7 × EV/EBITDA) leave little room for big upside at listing.
On the positive side, Lenskart has shown solid business performance: it turned profitable recently, with FY25 revenues up sharply and EBITDA margins improving to 14.7%.
In short: strong business fundamentals, but high valuation and investor caution mean listing gains may be modest.
