The IPO of leading eyewear manufacturer and marketer Lenskart is scheduled to be listed on the stock market today, but even before that it has raised concerns among investors. The gray market premium for this issue (Lenskart GMP) fell to as high as 90% just before the listing. Amid the fall in the market, there are indications that Lenskart will also list at a discount.
Size of Rs 7278 crore, 28 times subscription
The IPO of Lenskart Solutions opened for subscription on October 31 and investors placed bids till November 4. The total issue size was ₹7,278 crore. It received a total subscription of 28.26 times, involving over 32.56 lakh applications and bids worth over ₹1.13 lakh crore. The QIB category witnessed the highest subscription of 40.35 times. The retail category was subscribed 7.54 times.
This was the price band of shares
For the IPO of Lenskart, the company had fixed the price band of Rs 382-402 per share. The lot size was 37 shares. Under this IPO, the company sold new shares worth Rs 2,150 crore and 12,75,62,573 shares through OFS. Although this IPO had initially shown signs of creating a stir in the gray market, the picture has changed just before the listing.
GMP falls, investors worried
It is noteworthy that despite receiving bids worth more than Rs 1 lakh crore, Lenskart Solutions has seen a sharp decline in the gray market premium. It was trading at Rs 10 on the day of listing, but its GMP had fallen to Rs 6-8. When Lenskart’s IPO opened for subscription, its GMP was Rs 95-100. That means it has declined by 90%. Kotak Mahindra Capital Company, Morgan Stanley India Company, Avendus Capital, Citigroup Global Markets India, Axis Capital and Intensive Fiscal Services were the lead managers of the IPO, while MUFG was appointed the registrar.
The company was established in 2008
Lenskart is a technology-based eyewear company engaged in designing, manufacturing, branding and retailing of prescription eyeglasses, sunglasses, contact lenses and other accessories. Following a direct to consumer model, it offers a wide range of eyewear under its own brands and sub-brands.