Lenskart IPO: Subscriptions, PR, and Mutual Funds — The Indian Retail Debate on IPOs

Lenskart’s IPO saga is a useful barometer for how Indian retail thinks about valuation, hype, and access. Some investors even applied for the IPO, signaling a contrarian tilt amid the chatter around valuations ^[1]. The stock’s subscription tone mattered too: it got subscribed 1.13x, fueling debate about whether listing gains are a money-making glitch or a real signal ^[3].

Subcriptions and listing pulse - Retail sentiment alternates between fear and thrill as the market trades on hype. The buzz around listing gains and the fear of a repeat Paytm-like outcome echoes across threads and posts ^[3].

PR push and influencer footprint - Peyush Bansal’s media moves are read as a PR spark. Critics point to podcast appearances as a signal of marketing effort rather than pure fundamentals ^[2].

MF access and the “you scratch my back” game - Mutual funds are said to take tiny allocations in overheated IPOs to preserve access for future deals, a dynamic that fuels debate on where the real value lies ^[4]. - The dynamic pits institution-driven access against retail risk, with pundits asking who really benefits when funds get slots in high-profile floatations ^[4].

Profit quality and the valuation puzzle - A deeper look into the numbers shows a valuation around ₹70,000 crore but reported profit of ₹297 crore in FY25, with ₹356 crore coming from “other income” ^[5]. - The breakdown (₹73 crore from MF units, ₹58 crore from FD withdrawals, ₹167 crore from a one-time Owndays adjustment) suggests accounting entries rather than core business strength, raising questions about promoter selling and listing outcomes ^[5].

Closing thought: the Lenskart debate isn’t just about this IPO; it’s about whether hype, MF access, and accounting tricks will crowd out rational prioritization in future IPOs. Keep an eye on how MF participation evolves and how listings are priced next ^[5].

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