Lenskart IPO Anchor Book Receives Rs 68,000-Crore Bids: A New Record for Indian IPOs
Lenskart Solutions Ltd.’s IPO anchor book has received bids worth a whopping Rs 68,000 crore, according to sources. This is nearly 10 times the issue size of about Rs 7,300 crore and 20 times the anchor book size of nearly Rs 3,200 crore. The strong demand for the anchor book reflects a high level of interest from foreign institutional investors, who account for 52% of the bids received.
This marks a departure from the domination of domestic institutional investors seen in most major IPOs over the last two years. The leading foreign institutional investors participating in the anchor book include BlackRock, GIC, Fidelity, Nomura, and Capital International. On the other hand, the mutual fund arms of SBI, ICICI Prudential, HDFC, Kotak Mahindra, and Aditya Birla are among the domestic investors.
What is an Anchor Book and Why is it Important?
An anchor book is a list of institutional investors who are allocated shares in an IPO before the issue opens for subscription. The anchor book is important because it helps to gauge the demand for the IPO and sets the tone for the rest of the issue. A strong anchor book can help to boost investor sentiment and increase the chances of a successful IPO.
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Lenskart IPO: Key Details and Dates
Lenskart Solutions is set to open its IPO for subscription on Friday. Investors can bid for shares in the Lenskart IPO between Rs 382 and Rs 402, according to a public advertisement. The IPO allotment will be tentatively finalized on November 6, and shares will be credited into the demat accounts by November 7. Lenskart Solutions will list on the NSE and BSE on November 10.
On the upper price band, the company is valued at nearly Rs 70,000 crore. The Peyush Bansal-led eyewear products maker will raise Rs 2,150 crore via fresh issue of shares, while promoters and investors will be offloading 12.75 crore equity shares via offer-for-sale. The OFS amounts to Rs 5,128, including from the likes of Softbank Vision Fund, Kedaara Capital, TR Capital, and Chiratae Ventures.
Valuation Concerns: Is Lenskart Overvalued?
The IPO has been in focus for quite some time, with a debate on the valuation on the IPO still ongoing. At the upper end of its price band, Lenskart’s market capitalization on listing will be close to Rs 70,000 crore or $7.946 billion, based on financial year 2026 market cap data. The company’s valuation metrics suggest a high premium, which is its price-to-earnings or P/E ratio. This is projected at 236.5 times for financial year 2025 and a massive 202.1 times for financial year 2026.
To understand more about valuation metrics and how to analyze them, visit our valuation metrics for stock market page.
CEO Peyush Bansal’s Take on Valuation
In response to questions about Lenskart’s valuation, Bansal said he does not view determining valuation as part of an entrepreneur’s role. Instead, he emphasized that his responsibility lies in ensuring that customers receive the best-quality spectacles at the lowest possible price. He further added that valuation is something that he understands less and it is largely determined by strong advisers, and as an entrepreneur, ‘It is not our job to decide valuation’.
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