Lenskart IPO Faces Sharp Drop in Grey Market Premium Ahead of Listing: What Analysts Expect Next

Lenskart’s much-anticipated IPO has taken an unexpected turn as the company’s grey market premium (GMP) saw a sharp 70% plunge ahead of its official listing. The eyewear brand, known for reshaping India’s optical retail landscape, has been in the spotlight as investors weigh its long-term growth story against short-term market volatility. The sudden dip has raised fresh questions about investor sentiment toward upcoming consumer-tech IPOs.

Lenskart, backed by global investors such as SoftBank, Temasek, and KKR, has long been viewed as one of India’s strongest homegrown consumer brands in the eyewear segment. Its rapid expansion through both online and offline channels positioned it as a market leader, drawing comparisons with companies that successfully blended technology with retail. However, as the IPO date approaches, the cooling enthusiasm in the grey market suggests a more cautious stance among retail investors.

The grey market premium (GMP) is often seen as an early indicator of investor confidence before a stock hits the market. Initially, Lenskart’s IPO was trading at a strong premium, reflecting optimism about its business model, profitability trajectory, and growth in Tier 2 and Tier 3 cities. But in recent days, the GMP has reportedly fallen by around 70%, signaling weaker-than-expected speculative demand.

Market analysts believe this correction could be tied to broader concerns in the Indian stock market, where several high-profile IPOs have struggled to sustain listing gains. The recent trend shows that investors are becoming more valuation-conscious, particularly for startups transitioning from heavy-growth phases to profitability-focused operations. Lenskart, despite its brand strength, still operates in a competitive market dominated by price sensitivity and evolving consumer preferences.

According to experts, the drop in GMP doesn’t necessarily reflect poor fundamentals. Many analysts view the decline as a healthy correction, suggesting that overvaluation concerns may have prompted traders to book early profits. The company’s core business — affordable eyewear and quick service through digital integration — remains robust. With over 2,000 stores across India and a growing international footprint, Lenskart continues to expand aggressively, particularly in smaller Indian cities where vision care accessibility is limited.

Investor interest may also hinge on the company’s future financial disclosures. If Lenskart demonstrates consistent revenue growth and improved operating margins, it could regain investor confidence post-listing. The company’s emphasis on vertical integration, from lens manufacturing to home eye-testing services, positions it strongly in a market that still has untapped potential.

In the broader context, Lenskart’s IPO performance will serve as a litmus test for other Indian consumer-tech firms eyeing public listings in 2025. The outcome could influence how the market values tech-enabled retail businesses, especially those with strong consumer brands but moderate profitability.

For now, experts suggest retail investors should approach the IPO with balanced expectations, focusing on long-term fundamentals rather than short-term grey market signals. While the drop in GMP may indicate temporary market hesitation, Lenskart’s proven business model and brand recall continue to make it one of the most closely watched IPOs of the year.

In short, Lenskart’s upcoming listing will not just reflect investor sentiment toward one company — it will reveal how India’s new-age retail startups are being perceived in a maturing capital market environment.