India’s primary market is abuzz with many big-ticket public offers underway and a few marquee names lined up in November, including Groww.
Orkla India, parent of Indian ready-to-eat brand MTR Foods, saw a solid demand for its initial public offering (IPO), which closed for bidding on Friday with 48.7 times bids. Lenskart’s ₹7,278 crore offer also sailed through on the first day amid a strong grey market premium (GMP). Meanwhile, helmet-maker Studds continued to see decent traction for its offer, with 5 times bids as of the second day.
Lenskart IPO vs Studds Accessories IPO: What GMP signals
Amid the two IPOs currently underway — Lenskart and Studds Accessories — the former is enjoying a higher GMP. Here’s a lowdown:
Lenskart IPO GMP
Lenskart IPO GMP today is ₹84. This means shares of Lenskart are trading ₹84 higher than their issue price of ₹402 in the grey market. At the current GMP and considering the issue price, the indicative listing price for Lenskart shares will be ₹486 — a premium of 21%.
The GMP has moderated from ₹95 yesterday and ₹108 ahead of the IPO opening.
Shark Tank judge Peyush Bansal-led company has fixed a price band of ₹382 to ₹402 per share for the IPO, targeting a valuation of over ₹69,700 crore at the upper end.
Lenskart’s public offering has a fresh issue of shares worth ₹2,150 crore and an offer for sale (OFS) of 12.75 crore equity shares by promoters and investors. The last day to apply for the IPO is Tuesday, November 4.
Studds Accessories IPO GMP
Meanwhile, Studds Accessories IPO GMP has stabilised at ₹67 after trending higher over few days. This means Studds Accessories shares are trading ₹67 higher than the issue price of ₹585. At the prevailing GMP and issue price, Studds Accessories IPO listing price could be ₹652, a premium of 11.45%.
The highest GMP for Studds Accessories at one point was ₹85.
Studds Accessories IPO price band has been set at ₹557-585 per share, valuing the company at around ₹2,300 crore at the upper end of the range. The IPO is only an offer for sale (OFS), with the promoter group and other shareholders offloading 77.86 lakh shares.
The company is looking to raise ₹455 crore at the upper end of the price band. Investors have till Monday to apply for the IPO.
Lenskart IPO vs Studds IPO: Which is a better bet?
While the two companies are from different segments and it is difficult to compare them, analysts believe Studds has the scope to offer better returns in the medium-to-long term.
It’s difficult to compare Lenskart and Studds IPO since the market opportunity and sector are completely different, said Vaqarjaved Khan, Senior Fundamental Analyst, Angel One. However, given Studds, he said, offers relatively better upside potential for medium to long-term investors, given its valuations.
“Lenskart has a large addressable market, and eyewear penetration is still low in India. It has an omnichannel presence, own manufacturing and brand control allowed the company to consistently multiply its revenue and EBITDA margins. However, with FY25 PAT at Rs. 297 crore, P/Ex comes in at 285x, which is very high and does create valuation discomfort,” noted Khan.
At the same time, Studds is the world’s largest helmet manufacturer by volume in CY24 and India’s largest by revenue in FY24, with strong financials, said Khan. “The company has strong OEM ties and exports to more than 70+ countries has allowed the company to consistently increase its revenues and profitability. EBITDA Margins for the company have increased 20.3% in Q1 FY26 from 12% in FY23. The company has been able to do this on the back of strong OEM ties and reduction of supply chain risks,” said Khan.
Meanwhile, Abhinav Tiwari, Research Analyst at Bonanza, also believes that Studds stands out for its established market leadership, consistent cash flows, and fairly priced valuation, making it well-suited for investors seeking steady returns with lower risk.
In contrast, he said that Lenskart presents strong growth potential but carries a high valuation and concerns over the quality of its earnings. “Given these factors, a valuation correction in Lenskart after the IPO remains a distinct possibility. Therefore, Studds emerges as the more attractive choice for investors prioritising stability and long-term value,” Tiwari opined.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.