In a move that has stirred debate across India’s capital markets, alternative investment fund Persistence Capital publicly announced its decision to skip participation in the high-profile initial public offering (IPO) of eyewear retailer Lenskart. The fund’s candid disclosure, made via a post on X (formerly Twitter), has added fuel to the ongoing conversation around inflated valuations and shifting investor sentiment in the consumer-tech IPO space.
Lenskart, led by CEO Peyush Bansal, launched its ₹7,278 crore IPO on October 31, 2025, with a price band of ₹382–₹402 per share. The company is seeking a market capitalization of ₹70,000 crore, translating into a price-to-earnings (P/E) ratio of over 230x and a price-to-sales ratio exceeding 10x. These figures have raised eyebrows among analysts and retail investors, many of whom have drawn comparisons to past IPO misfires such as Paytm’s 2021 listing.
📊 Lenskart IPO Snapshot
| IPO Metric | Value |
|---|---|
| Total Issue Size | ₹7,278 crore |
| Fresh Issue | ₹2,150 crore |
| Offer for Sale (OFS) | ₹5,128 crore |
| Price Band | ₹382–₹402 per share |
| Target Valuation | ₹70,000 crore |
| P/E Ratio | ~230x |
| Listing Date | November 10, 2025 |
The valuation has sparked widespread debate about the sustainability of consumer-tech IPOs in India.
🧠 Persistence Capital’s Statement and Market Reaction
| Entity | Response Summary |
|---|---|
| Persistence Capital | “We are proud to say that we also skipped this IPO.” |
| Market Analysts | Mixed views; some call valuation “obscene” |
| Retail Investors | Confused by high multiples |
| Social Media Users | Compared to Shark Tank irony and Paytm IPO |
The fund’s refusal to participate was seen as a symbolic rejection of inflated valuations.
🗣️ Peyush Bansal’s Defense of Valuation
In response to criticism, Lenskart CEO Peyush Bansal stated, “My job is to create value, not just justify numbers. We are building a long-term business.” He emphasized the company’s growth trajectory, omnichannel strategy, and international expansion as key drivers of future profitability.
| Justification Area | Peyush Bansal’s Argument |
|---|---|
| Store Network | Over 2,600 stores across India |
| Global Presence | Expansion into UAE, Singapore, and US |
| Tech Integration | AI-powered lens fitting and supply chain |
| Subscription Model | Lenskart Gold and Vision Plans |
Despite the defense, many investors remain unconvinced about the valuation metrics.
📈 Industry Comparisons and Valuation Benchmarks
| Company | IPO Year | Valuation (₹ Cr) | P/E Ratio | Outcome |
|---|---|---|---|---|
| Nykaa | 2021 | ₹53,000 | ~160x | Mixed performance |
| Paytm | 2021 | ₹1,39,000 | NA | Sharp decline |
| Zomato | 2021 | ₹60,000 | NA | Volatile |
| Lenskart | 2025 | ₹70,000 | ~230x | Under scrutiny |
Lenskart’s valuation exceeds most of its consumer-tech peers, raising concerns about listing-day performance.
🧭 Investor Sentiment and Grey Market Premium Trends
| Date | GMP (%) | Market Sentiment Summary |
|---|---|---|
| October 28 | 27% | Optimism among early traders |
| October 29 | 18% | Valuation concerns begin surfacing |
| October 30 | 16.5% | GMP drops amid scepticism |
| October 31 | 14% | Retail investors cautious |
The falling GMP reflects growing unease about the IPO’s pricing and future returns.
🧠 Broader Implications for Consumer-Tech IPOs
| Concern Area | Industry Impact |
|---|---|
| Valuation Discipline | Push for realistic pricing models |
| Institutional Participation | Funds becoming selective |
| Retail Investor Protection | Need for better disclosures |
| Regulatory Oversight | SEBI may tighten IPO norms |
Persistence Capital’s move may signal a shift toward more conservative investment strategies in India’s IPO market.
📌 Conclusion
The Lenskart IPO has become a flashpoint in India’s consumer-tech investment narrative, with Persistence Capital’s public rejection amplifying concerns over valuation excesses. While Peyush Bansal remains confident in the company’s long-term vision, the market’s response underscores a growing demand for transparency, realistic pricing, and sustainable growth. As the IPO heads toward listing, all eyes will be on how Lenskart performs and whether it can justify its lofty valuation in the public markets.
Disclaimer: This article is based on publicly available financial disclosures, investor statements, and media reports. It is intended for informational purposes only and does not constitute investment advice.
