Shares of Lenskart bounced back after a slow start, finishing slightly above the offer price on Monday, following the Indian eyewear retailer’s ₹72.8 billion ($821 million) IPO that was quickly sold out but raised questions regarding its valuation.

The stock debuted at ₹395, lower than the IPO price of ₹402, and saw a decline of up to 11% to ₹356.10 during the session, before rebounding to a close at ₹404.55. This closing price gives Lenskart a valuation of approximately ₹702 billion (around $8 billion). The IPO received heavy oversubscription with bids reaching about 28 times the number of shares available, primarily from institutional investors.

Lenskart believes that its vertically integrated model — managing everything from production to retail outlets — can surpass traditional optical chains and online competitors. Nevertheless, the 15-year-old enterprise contends with competition at various price levels from Titan Eye+ to emerging direct-to-consumer brands, raising concerns about its capacity to scale profitably both in India and internationally.

The company reported profitability in fiscal year 2025 (ending in March), with revenue up 23% year-over-year to ₹66.53 billion (approximately $750 million). The net profit was reported at ₹2.97 billion (around $33 million), bolstered by a ₹1.67 billion (around $19 million) accounting gain (not actual cash) related to the Owndays acquisition. Excluding this exceptional item, the core profit was reported at ₹1.30 billion, roughly $15 million.

Lenskart aimed for a valuation of ₹700 billion — about $7.9 billion — at the top of the IPO pricing range, placing it among India’s most highly valued new-age consumer brands, alongside companies like Honasa and BlueStone. This valuation signifies an increase of more than 60% from the approximately $5 billion at which Lenskart shares were traded in a secondary offering last June involving late-stage investors Fidelity and Temasek. Fidelity later raised Lenskart’s valuation by 12% to $5.6 billion in November of the previous year.

The proposed valuation suggested a multiple of around 230 times Lenskart’s core net profit and roughly 10 times revenues, igniting debates among retail investors and on social media platforms. DSP Asset Managers, which invested in the company prior to the listing, defended the valuation despite labeling it “expensive,” asserting in a response to criticism that the business remains “strong and scalable.”

Chief Executive Peyush Bansal, who has gained broader public exposure as a judge on Shark Tank India, stated that the offering was “fairly priced,” referencing positive feedback from institutional investors.

“We didn’t establish Lenskart to hit a valuation,” he remarked during the IPO event in Mumbai. “Our goal was to connect with people, extending from Delhi to the tiniest towns in India.”

Lenskart intends to utilize the funds from the IPO to facilitate growth, which includes launching new retail outlets and enhancing its supply chain and retail framework. The company also plans to invest in technology and marketing, with a portion of the funds potentially allocated for acquisitions and other general corporate uses.

Current investors such as SoftBank, Schroders Capital, Premji Invest, Kedaara Capital, and Alpha Wave Ventures divested shares during the IPO. Co-founders Peyush and Nehal Bansal, Amit Chaudhary, and Sumeet Kapahi also sold a segment of their stakes.

Lenskart’s public listing occurs at a time when numerous Indian startups are transitioning to public markets due to tightening late-stage venture funding and a growing domestic investor interest. Fintech companies Groww and Pine Labs, edtech platform PhysicsWallah, SaaS provider Capillary Technologies, and consumer brand BoAt are among the startups gearing up for their IPOs in India.