Recent reports suggest that Lenskart Solutions Limited’s shares have traded at ₹510 apiece in the unlisted market, pushing its implied valuation to around $10 billion.
This valuation is especially notable because in 2024, Lenskart’s private valuation was around $5 billion.
As Lenskart moves closer to its planned IPO, this grey market valuation is being viewed as a leading indicator of what public markets might value the company at.
What’s Driving the Jump
Several factors appear to be contributing to Lenskart’s valuation surge:
- Strong financial momentum: Lenskart has reported better profitability metrics and increased revenues, making investors more bullish. NewsBytes
- Scarce supply & high demand in grey market: As it nears IPO, demand for early access shares tends to push unlisted prices upward.
- Positive IPO expectations: With regulatory approvals in place and the company getting closer to a public listing, investor anticipation is high.
- Brand strength & market leadership: Lenskart is India’s largest organized eyewear retailer, with both online and offline presence growing.
Risks & Caveats
- Grey market valuations can be volatile: These are not formal shares traded on exchanges; they reflect sentiment, scarcity, and speculative demand, not guaranteed value.
- Valuation gap vs public reality: The $10B grey market price may not translate to that exact valuation when Lenskart lists publicly.
- Regulatory & market risks: IPO timing, regulatory scrutiny, macroeconomic factors, and investor sentiment can alter valuations drastically.
- Overvaluation concerns: If execution falters post-listing, the company might face downward pressure on its stock.
What It Means for the IPO & Investors
- Strong pricing signal for public offering: A $10 billion grey market valuation gives Lenskart and bankers confidence about what demand may look like at listing.
- Investor interest confirmation: High valuation in the unlisted market indicates there’s appetite among pre-IPO investors.
- Benchmark for peer startups: Lenskart’s surge could influence valuations of other D2C, retail, or health-tech companies preparing IPOs.
- Expectations management: Lenskart will need to justify this valuation through strong execution, margins, growth, and governance.
