Lenskart IPO Valuation Controversy: How 230x PE Sparks Retail Losses and Mutual Fund Skepticism

Lenskart’s IPO debate is blazing a path between sky-high numbers and real-world risks. The talking point: a claimed 230x PE ratio, pressed on Peyush Bansal during questions about the IPO valuation ^[2]. Experts back-and-forth with a spectrum of pre-IPO value estimates, including $5.5-10 billion using different valuation methods ^[3].

Valuation in the spotlight — The core question is whether a startup-turned-unicorn deserves such lofty multiples. Analysts cite three common methods for early-stage firms: Comparable Company Analysis, VC method, and DCF, with pre-IPO ranges that can stretch into the $5.5-10 billion zone ^[3].

Retail and mutual funds under the lens — Retail participation is capped at 10% of the issue, tied to profit timing from other income rather than core profits ^[4]. Yet big funds are in: SBI Mutual Fund reportedly bought around ₹100 crore in shares, signaling MF participation in the hype ^[4]. The spectrum of backing is wide, with institutional buyers valuing the deal around ₹70,000 crore ^[5], while early insiders extract liquidity—Peyush Bansal’s OFS could push him toward ~₹824 crore, and the offer price sits around ₹402 per share ^[5].

Profitability vs. the IPO story — Lenskart’s balance sheet reportedly shows ₹358 crore from “Other Income,” while the core business remains in the red ^[1]. Critics flag an “absurd valuation,” noting large OFS exits by global investors and cautioning that retail buyers may bear the brunt if the price collapses (Zomato-like dynamics are cited as a cautionary tale) ^[6].

Bottom line: the debate pits chart-topping math against real-world retail risk and mutual-fund participation. Watch how MF commitments and OFS exits shape the listing’s first six months ^[4][5][6].

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