Author: Aditya Pareek | EQMint | Market News

Lenskart, one of India’s most prominent consumer-tech unicorns, made its long-awaited entry into the public markets today—only to face an unexpectedly weak response. Despite being one of the largest IPOs from the retail-tech segment in recent years, the stock listed at ₹395 per share, a 3% discount to its issue price of ₹407. What was expected to be a celebratory debut for the eyewear giant turned into a volatile and cautious trading session.

The stock’s initial weakness immediately drew attention from analysts and investors. Within the first few minutes of trade, Lenskart shares slipped nearly 10%, reflecting nervousness around valuation, global market cues, and the recent mixed performance of new-age tech IPOs. Although the stock showed signs of stabilizing later in the session, the early slide highlighted the market’s preference for profitability and predictable cash flows over growth-led narratives.

A Highly Anticipated Listing Falls Short of Expectations

Lenskart’s IPO has been among the most talked-about public issues of the year, backed by marquee global investors and riding on the company’s strong brand presence across India and international markets. The company had built significant buzz with its technology-driven retail model, hybrid store strategy, and aggressive global expansion into Southeast Asia and the Middle East.

Despite the hype, the muted listing signals that the market was not entirely comfortable with the valuation at which the shares were priced. Analysts had warned earlier that Lenskart’s premium pricing left little room for short-term upside unless the company delivered exceptionally strong quarterly performance post-listing.

The broader market environment also played a role. With global cues turning cautious and investors shifting toward safer, more value-driven stocks, new-age consumer-tech companies faced selling pressure. Lenskart’s debut reflected this broader sentiment.

Volatile Trade: Sharp Slide, Followed by Mild Recovery

After the opening bell, trading in Lenskart shares was marked by sharp swings. The stock fell almost 10% shortly after listing, hitting intraday lows in a matter of minutes. The pressure came primarily from retail investors and short-term traders booking quick losses, sensing weak listing momentum.

However, institutional buyers and long-term investors stepped in later, helping the stock recover marginally from its steep early dip. By late morning, Lenskart was trading with reduced losses, though still below its issue price.

Market observers described the session as a “classic case of valuation stress meeting cautious sentiment.” While investors acknowledged Lenskart’s dominant position in the eyewear category, they remained mindful of its global expansion costs, rising competition, and the need for consistent profitability.

Company Response: “A Long-Term Journey Begins”

Following the lacklustre opening, Lenskart’s management issued a measured response, reiterating confidence in the company’s long-term direction. The company highlighted its strong domestic footprint, rapid international expansion, and investments in manufacturing and technology.

According to the leadership team, the listing marks the start of a new chapter rather than an end goal. “Today’s debut is a milestone, but the journey ahead is what truly matters. Our focus remains on scaling responsibly, building global supply chains, and continuing to innovate in the eyewear category,” the company stated.

Lenskart emphasized that its vertically integrated model—covering manufacturing, logistics, retail, and after-sales—will help maintain pricing power and better margins in the future.

Why the Debut Was Softer Than Expected

Market experts have cited several factors behind the subdued listing:

1. Valuation Concerns

Lenskart was priced at a premium compared to traditional retail companies. Investors were hesitant to enter at high valuations without clarity on near-term profitability.

2. Mixed Sentiment for Tech IPOs

Recent listings in the consumer-tech and D2C space have shown inconsistent performance. This has made investors more selective and risk-averse.

3. Global Market Softness

Weak global cues, including concerns about tech spending and inflationary pressures, influenced domestic investor sentiment.

4. Profitability Pressure

While Lenskart has seen strong revenue growth, its international expansion plans require heavy CAPEX, raising questions about margin stability.

Analysts: Long-Term Potential Remains Strong

Despite the poor debut, analysts believe Lenskart’s fundamentals remain robust. The company controls a large part of its supply chain, operates more than 2,000 stores globally, and continues to dominate India’s eyewear market—one that has historically been underserved and largely unorganized.

Its technology-first approach, including virtual try-ons, AI-driven lens customization, and home eye tests, sets it apart from traditional optical retailers. Many market watchers believe that once the initial volatility settles, Lenskart could become a strong long-term story—provided it executes well on profitability and expansion.

What Happens Next?

In the coming weeks, investors will closely track:

• • Lenskart’s Q3 and Q4 results

• • Margin improvements and cost efficiency

• • Store expansion strategy

• • Growth in international markets

• • Management commentary on profitability timelines

If the company demonstrates steady financial performance, the stock may regain momentum. For now, the cautious listing serves as a reminder that even celebrated startups must win investor trust through numbers, not just brand power.

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Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.