Lenskart sees tepid debut as shares list at discount

Omnichannel eyewear retailer Lenskart saw a muted market debut on Monday after its shares opened at a discount from the issue price on both NSE and BSE, amid concerns about a fair valuation of the company's shares.

Shares of the Peyush Bansal-led company opened at Rs 395 on NSE and Rs 390 on BSE, against an issue price of Rs 402. However, shares on NSE made gains in early trade to reach a high of Rs 404 apiece.

Lenskart's muted performance on listing day comes after its IPO saw robust demand on the final day, with the total issue being oversubscribed 28x by the last day of bidding.

The IPO subscription was led by qualified institutional buyers who oversubscribed their portion 40 times, while the non-institutional investor segment was subscribed 18 times. Retail investor interest in the IPO stood at 7.53 times the allotted size.

Lenskart has joined the ranks of startups that have made their way to the domestic bourses as investors look for exits and founders chase public funds.

Last month, Abhiraj Singh Bhal-led Urban Company saw its shares surge on their stock market debut, listing at more than a 57% premium to the IPO price. The company's Rs 1,900-crore public offering was subscribed 103.63 times between September 10 and 12, making it the most heavily subscribed share sale in India this year, according to Bloomberg estimates.