Lenskart has joined a growing list of Indian companies that performed weakly on their stock market debut. This appears to be becoming a steady phenomenon: despite hype and lofty grey‑market premiums (GMP), the actual stock market showing of several IPOs is modest. The GMP — once considered a reliable predictor of listing performance — is proving less accurate. Is India’s IPO landscape shifting from irrational exuberance to investor scrutiny?<h2>LIC’s blockbuster IPO that turned into a dud</h2>Back in May 2022, the pandemic‑era investor euphoria ran into a reality check. LIC, the state‑owned insurance giant, listed at around ₹867 on the BSE — about 8.6 per cent below its issue price of ₹949. By the end of the trading day, shares settled at roughly ₹875. Earlier, its GMP had been quoted as high as ₹85, suggesting a possible listing at a premium — an expectation that was sharply reversed.Also read: <a href="https://www.wionews.com/business-economy/boat-gets-regulatory-nod-for-ipo-aman-gupta-s-offer-for-sale-revealed-report-1761733594231">Boat gets regulatory nod for IPO, Aman Gupta's&nbsp;offer for sale revealed: Report</a><h2>The Lenskart IPO and flat returns</h2>Three years since the LIC shocker, Lenskart, backed by investor giants such as SoftBank, listed on November 10, only to emerge as a cautionary tale. The eyewear retailer had strong credentials going into the IPO: a 28.3× subscription, FY25 revenue of ₹66.53 billion (up 23 per cent), and a GMP that had peaked around ₹108. But, just before listing, the GMP collapsed to roughly ₹10. Lenskart’s shares opened at ₹395 on the NSE — 1.75 per cent below the ₹402 issue price — and closed the day at ₹404.55, barely +0.6 per cent. As of now, its share price hovers around ₹405, just 0.7 per cent above issue, a far cry from the earlier GMP-driven optimism.<a href="https://www.wionews.com/videos/inside-india-s-ipo-boom-what-s-driving-record-breaking-listings-1762417418183/embed">https://www.wionews.com/videos/inside-india-s-ipo-boom-what-s-driving-record-breaking-listings-1762417418183/embed</a><h2>What Lenskart IPO tells us about Indian stock market</h2>Lenskart’s flat debut raises a stark question: is the IPO boom over, or are investors simply waking up? Compared with the frenetic market of 2021–22, when GMP often converted into 50 per cent+ listing gains, recent IPOs suggest a more cautious, measured investor mindset. In Lenskart’s case, despite aggressive bidding during subscription, the grey market cooled markedly before listing — implying that speculative FOMO - fear of missing out - may be waning.Also read: <a href="https://www.wionews.com/business-economy/lg-electronics-to-bring-ipo-in-india-5-points-on-south-korean-giant-s-planned-offering-1757316356342">LG Electronics to bring IPO in India: 5 points on South Korean giant's planned offering</a><h2>Not all IPOs are disappointing, because…</h2>In spite of the waxing and waning, some IPOs have done well. For example, IREDA — the government-backed renewable energy financier — saw GMP near +37.5  per cent and went on to list at a 56.25  per cent premium from its ₹32 issue price. Since then, its shares have steadily moved, up to 365 per cent from issue price. This suggests that if fundamentals align — especially in policy-driven or growth sectors — patient, long-term investors can be rewarded.Also read: <a href="https://www.wionews.com/business-economy/india-s-ipo-market-holds-firm-in-h1-2025-despite-global-jitters-says-ey-report-1752990788054">India’s IPO market holds firm in H1 2025 despite global jitters, says EY report</a><h2>GMP failed to translate into real gains</h2>Analysts had warned that Lenskart’s business model was capital-intensive and that returns on capital might remain modest. That caution seems justified now, as GMP failed to translate into real gains, reinforcing the idea that grey‑market premiums are poor proxies for long-term profitability.In short, GMP may no longer be a sign of long-term strength of a company, with recent listings proving the clear disconnect. Investors — both retail and institutional — now appear to be focusing more on metrics such as revenue growth, cash flows, and profitability, rather than just hype.<h2>So, is the Indian IPO market dead?&nbsp;</h2>Not at all. But the era of “get-rich-quick” IPO plays, driven purely by GMP and marketing hype, seems to be fading. We may be entering a phase of greater market maturity, where capital flows are more discerning. Companies will need to price their IPOs more sensibly, and investors will need to exercise more discipline.The Lenskart episode is not the death knell of IPOs, but it is a wake-up call.&nbsp; &nbsp;

India’s IPO market is maturing as GMP hype fades. Lenskart IPO resulted in modest listings, while IREDA's IPO soared. These mixed market response signals a shift from speculative frenzy to disciplined investing.

Lenskart has joined a growing list of Indian companies that performed weakly on their stock market debut. This appears to be becoming a steady phenomenon: despite hype and lofty grey‑market premiums (GMP), the actual stock market showing of several IPOs is modest. The GMP — once considered a reliable predictor of listing performance — is proving less accurate. Is India’s IPO landscape shifting from irrational exuberance to investor scrutiny? LIC’s blockbuster IPO that turned into a dud Back in May 2022, the pandemic‑era investor euphoria ran into a reality check. LIC, the state‑owned insurance giant, listed at around ₹867 on the BSE — about 8.6 per cent below its issue price of ₹949. By the end of the trading day, shares settled at roughly ₹875. Earlier, its GMP had been quoted as high as ₹85, suggesting a possible listing at a premium — an expectation that was sharply reversed. Also read: Boat gets regulatory nod for IPO, Aman Gupta's offer for sale revealed: Report The Lenskart IPO and flat returns Three years since the LIC shocker, Lenskart, backed by investor giants such as SoftBank, listed on November 10, only to emerge as a cautionary tale. The eyewear retailer had strong credentials going into the IPO: a 28.3× subscription, FY25 revenue of ₹66.53 billion (up 23 per cent), and a GMP that had peaked around ₹108. But, just before listing, the GMP collapsed to roughly ₹10. Lenskart’s shares opened at ₹395 on the NSE — 1.75 per cent below the ₹402 issue price — and closed the day at ₹404.55, barely +0.6 per cent. As of now, its share price hovers around ₹405, just 0.7 per cent above issue, a far cry from the earlier GMP-driven optimism. https://www.wionews.com/videos/inside-india-s-ipo-boom-what-s-driving-record-breaking-listings-1762417418183/embed What Lenskart IPO tells us about Indian stock market Lenskart’s flat debut raises a stark question: is the IPO boom over, or are investors simply waking up? Compared with the frenetic market of 2021–22, when GMP often converted into 50 per cent+ listing gains, recent IPOs suggest a more cautious, measured investor mindset. In Lenskart’s case, despite aggressive bidding during subscription, the grey market cooled markedly before listing — implying that speculative FOMO - fear of missing out - may be waning. Also read: LG Electronics to bring IPO in India: 5 points on South Korean giant's planned offering Not all IPOs are disappointing, because… In spite of the waxing and waning, some IPOs have done well. For example, IREDA — the government-backed renewable energy financier — saw GMP near +37.5  per cent and went on to list at a 56.25  per cent premium from its ₹32 issue price. Since then, its shares have steadily moved, up to 365 per cent from issue price. This suggests that if fundamentals align — especially in policy-driven or growth sectors — patient, long-term investors can be rewarded. Also read: India’s IPO market holds firm in H1 2025 despite global jitters, says EY report GMP failed to translate into real gains Analysts had warned that Lenskart’s business model was capital-intensive and that returns on capital might remain modest. That caution seems justified now, as GMP failed to translate into real gains, reinforcing the idea that grey‑market premiums are poor proxies for long-term profitability. In short, GMP may no longer be a sign of long-term strength of a company, with recent listings proving the clear disconnect. Investors — both retail and institutional — now appear to be focusing more on metrics such as revenue growth, cash flows, and profitability, rather than just hype. So, is the Indian IPO market dead? Not at all. But the era of “get-rich-quick” IPO plays, driven purely by GMP and marketing hype, seems to be fading. We may be entering a phase of greater market maturity, where capital flows are more discerning. Companies will need to price their IPOs more sensibly, and investors will need to exercise more discipline. The Lenskart episode is not the death knell of IPOs, but it is a wake-up call.

India’s IPO market is maturing as GMP hype fades. Lenskart IPO resulted in modest listings, while IREDA's IPO soared. These mixed market response signals a shift from speculative frenzy to disciplined investing. &nbsp;

LIC to Lenskart: Is India’s IPO party over, or are investors growing up? Lessons and cautionary tales

A Bloomberg report quoting sources showed the valuation of India's biggest equity-derivatives bourse, the National Stock Exchange (NSE), has surged 60 per cent. This comes on hopes the bourse will go in for IPO soon.&nbsp;The valuation of NSE in private markets has reached $58 billion, with demand far outstripping the supply of the bourse's unlisted shares.&nbsp;Institutions and wealthy individuals have been purchasing the unlisted shares at a rapid pace in anticipation of an IPO. The share sale is expected as early as this year.&nbsp;Recent trades have seen prices of the bourse jump up to ₹2,000 or $23 per share. That is a reflection of the stock's high demand relative to supply.&nbsp;IPO bets boost NSE's valuation&nbsp;NSE's perceived value jumped to $36 billion in September last year, more than doubling in just four months.The latest rally coincides with the exchange's efforts to settle a longstanding legal dispute with the SEBI. The legal battle had held up NSE's listing plans for nearly a decade.&nbsp;The NSE, backed by large investors like LIC of India and Canada Pension Plan Investment Board, first filed papers for an IPO in 2016.&nbsp;Sebi's investigation into allegations that some high-speed traders gained unfair access to its co-location servers not only derailed the listing but also led to a six-month ban from capital markets.&nbsp;Currently, the NSE has almost 2.5 billion shares outstanding in private markets. A potential IPO would place NSE’s $58 billion valuation above that of NASDAQ and would narrow the gap with Deutsche Börse's $62 billion market value.

The valuation of NSE in private markets has reached $58 billion, with demand far outstripping the supply of the bourses unlisted shares.

A Bloomberg report quoting sources showed the valuation of India's biggest equity-derivatives bourse, the National Stock Exchange (NSE), has surged 60 per cent. This comes on hopes the bourse will go in for IPO soon. The valuation of NSE in private markets has reached $58 billion, with demand far outstripping the supply of the bourse's unlisted shares. Institutions and wealthy individuals have been purchasing the unlisted shares at a rapid pace in anticipation of an IPO. The share sale is expected as early as this year. Recent trades have seen prices of the bourse jump up to ₹2,000 or $23 per share. That is a reflection of the stock's high demand relative to supply. IPO bets boost NSE's valuation NSE's perceived value jumped to $36 billion in September last year, more than doubling in just four months. The latest rally coincides with the exchange's efforts to settle a longstanding legal dispute with the SEBI. The legal battle had held up NSE's listing plans for nearly a decade. The NSE, backed by large investors like LIC of India and Canada Pension Plan Investment Board, first filed papers for an IPO in 2016. Sebi's investigation into allegations that some high-speed traders gained unfair access to its co-location servers not only derailed the listing but also led to a six-month ban from capital markets. Currently, the NSE has almost 2.5 billion shares outstanding in private markets. A potential IPO would place NSE’s $58 billion valuation above that of NASDAQ and would narrow the gap with Deutsche Börse's $62 billion market value.

The valuation of NSE in private markets has reached $58 billion, with demand far outstripping the supply of the bourse's unlisted shares.

Top Indian exchange’s valuation jumps 60%

India's online beauty, cosmetics and wellness e-commerce company Nykaa opened to a blockbuster valuation on Wednesday after it floated its initial public offering (IPO).

Nykaa's shares surged 89 per cent on Wednesday to Rs 2,129 after it opened at Rs 2,018 in pre-trade. Last week the company had offered bids worth $32.55 billion as the market lapped it up and it was oversubscribed nearly 82 times.

<a href="https://www.wionews.com/world/jeff-bezos-reclaims-worlds-richest-person-title-by-overtaking-elon-musk-364274">Also Read:&nbsp;Jeff Bezos reclaims world's richest person title by overtaking Elon Musk</a>

The new online product is targeted at the tech-savvy Indian women who are active on the net and mostly buy products online. The company also began selling clothes and household products in a bid to increase its portfolio for customers.&nbsp;India's new internet giant was widely accepted by Indians with top-line celebrities endorsing the brand.

<a href="https://www.wionews.com/business-economy/ex-teacher-who-became-one-of-the-worlds-richest-is-not-even-a-billionaire-now-400745">Also Read:&nbsp;Ex-teacher who became one of the world's richest is not even a billionaire now</a> 
&nbsp;&nbsp; 
The massive opening made Nykaa’s founder and chief executive Falguni Nayar, 58, India's richest self-made woman&nbsp;billionaire. According to Bloomberg, Falguni Nayar's net worth rose $6.5 billion.

Nykaa's boss had left Kotak Investment Banking back in 2012. Nayar passed out from the Indian Institute of Management (IIM), Ahmedabad.

<a href="https://www.wionews.com/world/richest-1-per-cent-of-americans-now-own-more-wealth-than-the-entire-middle-class-419838">Also Read:&nbsp;Richest 1 per cent of Americans now own more wealth than the entire middle class</a>

Reports say Nayar is now the only woman to lead the country's newest unicorn as her net worth zoomed.&nbsp;

As the company's shares shot up in the first five minutes of trade, Nayar said: "I hope the Nykaa journey -&nbsp;an Indian-born, Indian-owned and Indian-managed dream-come-true -&nbsp;can inspire each of you."

Nayar along with her husband and twin children own half of the Nykaa shares even as the company has increased its sales by 35 per cent to $330 million this year, according to Bloomberg. Her son and daughter manage different units of the company.

(With inputs from Agencies)

India's online beauty, cosmetics and wellness e-commerce company Nykaa opened to a blockbuster valuation on Wednesday after it floated its initial public offering (IPO).

India's online beauty, cosmetics and wellness e-commerce company Nykaa opened to a blockbuster valuation on Wednesday after it floated its initial public offering (IPO). Nykaa's shares surged 89 per cent on Wednesday to Rs 2,129 after it opened at Rs 2,018 in pre-trade. Last week the company had offered bids worth $32.55 billion as the market lapped it up and it was oversubscribed nearly 82 times. Also Read: Jeff Bezos reclaims world's richest person title by overtaking Elon Musk The new online product is targeted at the tech-savvy Indian women who are active on the net and mostly buy products online. The company also began selling clothes and household products in a bid to increase its portfolio for customers. India's new internet giant was widely accepted by Indians with top-line celebrities endorsing the brand. Also Read: Ex-teacher who became one of the world's richest is not even a billionaire now The massive opening made Nykaa’s founder and chief executive Falguni Nayar, 58, India's richest self-made woman billionaire. According to Bloomberg, Falguni Nayar's net worth rose $6.5 billion. Nykaa's boss had left Kotak Investment Banking back in 2012. Nayar passed out from the Indian Institute of Management (IIM), Ahmedabad. Also Read: Richest 1 per cent of Americans now own more wealth than the entire middle class Reports say Nayar is now the only woman to lead the country's newest unicorn as her net worth zoomed. As the company's shares shot up in the first five minutes of trade, Nayar said: "I hope the Nykaa journey - an Indian-born, Indian-owned and Indian-managed dream-come-true - can inspire each of you." Nayar along with her husband and twin children own half of the Nykaa shares even as the company has increased its sales by 35 per cent to $330 million this year, according to Bloomberg. Her son and daughter manage different units of the company. (With inputs from Agencies)

Meet Nykaa's Falguni Nayar, India's richest self-made woman billionaire after blockbuster IPO

india-ipo

India Ipo, News on India Ipo, stories on India Ipo, articles on India Ipo, India Ipo stories at Wion, India Ipo news, India Ipo latest news

india ipo

LIC to Lenskart: Is India’s IPO party over, or are investors growing up? Lessons and cautionary tales

Top Indian exchange’s valuation jumps 60%

Meet Nykaa's Falguni Nayar, India's richest self-made woman billionaire after blockbuster IPO