After a Weak Debut, Lenskart Shares Jump 16% Intraday: Buy, Sell or Hold?

Lenskart Shares Jump 16% Intraday After Weak Market Debut — Should You Buy, Sell, or Hold?

Lenskart share price witnessed a rollercoaster ride on its debut trading session, listing at a discount before rebounding sharply to turn positive by the day’s end. The volatility came after the eyewear retailer’s ₹7,278 crore Lenskart IPO, one of the most anticipated public issues of the year, drew robust investor interest with a subscription of over 28 times.

Lenskart Shares Recover After Discounted Listing

Lenskart shares listed at ₹390 apiece on the BSE, nearly 3% below its IPO price of ₹402. However, after hitting an intraday low of ₹355.7, the stock staged an impressive comeback, rising over 16% intraday to ₹413.80, crossing its issue price.

By market close, Lenskart share price settled at ₹403.30, marginally above its IPO level, marking a modest 0.3% listing gain. The company’s market capitalization at the end of the day stood at ₹69,967 crore, reflecting strong interest from institutional investors despite a choppy debut.

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Ambit Capital Issues Rare ‘Sell’ Call Before Listing

In a surprising move, Ambit Capital had issued a Sell recommendation on Lenskart shares even before their market debut. The brokerage set a target price of ₹337 per share — implying a 14% downside from the listing price and nearly 16% below the IPO issue price.

Ambit’s report cited Lenskart’s capex-heavy made-to-order model and delayed free cash flow (FCF) generation, projecting positive cash flows only by FY28. “The model’s high capital intensity could weigh on returns for the foreseeable future,” the brokerage warned.

Analysts’ Take: Valuations a Key Concern Despite Growth Potential

Market experts remain divided on Lenskart’s long-term prospects.
According to Ambareesh Baliga, an independent market analyst, “Lenskart’s business model is impressive, but valuations remain stretched. The weak listing underlines the need for investors to look beyond grey market premiums and focus on fundamentals.”

Baliga added that such underwhelming debuts despite strong subscriptions might dampen retail participation in upcoming IPOs.

On the other hand, Shivani Nyati, Head of Wealth at Swastika Investmart, advised a cautious hold strategy: “Investors who were allotted shares can hold for the medium to long term, supported by Lenskart’s earnings visibility and expanding retail footprint. However, short-term traders may exit and look for better opportunities elsewhere.”

Mixed Sentiment: High Growth Meets Rich Valuation

Despite being one of India’s largest eyewear retailers, analysts are cautious about the Lenskart share price outlook in the near term.
Harshal Dasani, Business Head at INVasset PMS, pointed out that “while the long-term story around omnichannel retail and brand strength remains intact, near-term valuations look steep. The company is still in investment mode — focusing on expansion, marketing, and technology integration — which may cap profitability in the next few quarters.”

He further added, “Given the current setup, investors should consider booking profits where possible and re-enter at lower levels once earnings growth catches up.”

Similarly, Shravan Shetty, Managing Director at Primus Partners, expects Lenskart shares to remain range-bound with a negative bias until the company delivers a positive surprise in its upcoming earnings results. “The next big trigger will be quarterly numbers. Unless the performance significantly beats expectations, sustaining current valuations may be difficult,” he said.

Grey Market Premium Shrinks Ahead of Listing

Interestingly, the discount listing came despite Lenskart IPO’s grey market premium (GMP) indicating mild positivity ahead of debut. Data from Investorgain showed that Lenskart’s unlisted shares traded at a 2.5% premium at ₹412 per share in the grey market before listing.

However, the GMP had sharply fallen from 24–27% levels seen during the IPO bidding phase in late October, reflecting fading enthusiasm among short-term investors. The cooling premium suggested growing caution among traders over valuations amid volatile secondary market conditions.

About Lenskart IPO: A High-Profile Listing

Lenskart’s ₹7,278 crore IPO comprised a fresh issue of ₹2,150 crore and an offer for sale (OFS) of 12.75 crore shares. The price band was fixed at ₹382–₹402 per share, valuing the company at approximately ₹70,000 crore. Investors were required to bid for a minimum of 37 shares, translating into an application amount of ₹14,874.

The IPO saw strong participation from institutional and retail investors, led by optimism around Lenskart’s growth in both online and offline eyewear markets. The company’s expanding presence across India and its global push through acquisitions in Southeast Asia and the Middle East have strengthened its brand recall and market leadership.

Should You Buy, Sell, or Hold Lenskart Shares?

For investors wondering whether to buy, sell, or hold — experts suggest a measured approach. While Lenskart’s strong brand, wide store network, and omnichannel strategy provide long-term potential, the Lenskart share price currently trades at premium valuations that may already factor in future growth.

Short-term traders could use rallies to book profits, while long-term investors may consider accumulating gradually on dips, especially if the company shows improvement in margins and cash flows in the coming quarters.

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