Lenskart IPO Valuation Scrutiny: Do Mutual Funds Lose Discipline to Hype?

Lenskart's IPO has turned valuation into a hot topic, splitting investors on whether to subscribe, wait for listing, or avoid altogether. The chatter centers on a roughly 70k crore market cap at the offer price, a figure many say is hard to justify for an eyewear retailer ^[2]. Critics argue the growth story doesn’t obviously warrant a tech-style premium, given the sector’s competitive, low-margin realities ^[3].

Valuation under the lens: 'Valuation defies logic' is a frequent refrain. Paying double- or triple-digit revenue multiples for a retailer with single-digit margins is more optimistic than grounded ^[3]. Some compare this to Paytm-style exuberance, or contrast with Zomato’s multiples, arguing the two aren’t apples to apples but the risk remains loud ^[3].

Mutual funds' discipline under fire: The debate questions how fund managers can back such lofty valuations without diluting discipline, especially when hype around IPOs runs high ^[3]. The fear is mutual funds could become exit ramps for uneven growth stories rather than engines of long-term value ^[3].

Inside the debate, Peyush Bansal—famed from Shark Tank India—is cited defending the valuation. Critics retort that retail investors are being treated as 'dumb money,' a dynamic that would tilt due-diligence toward listing gains rather than fundamentals ^[4].

The verdict will hinge on long-term growth vs listing hype as Lenskart prepares to list.

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