💼 DSP Mutual Fund Explains Why It’s Betting on Lenskart IPO Despite High Valuations
In a recent post, DSP Mutual Fund clarified its stance on investing in the much-anticipated Lenskart IPO, stating that while the valuation may seem expensive, the fund remains confident in the company’s long-term business potential.
The fund house emphasized that it follows a disciplined investment framework and only participates in IPOs when it holds conviction across four dimensions — a strong and scalable business model, trustworthy promoters, demonstrated execution, and reasonable valuations.
“It’s rare to find all four factors perfectly aligned,” DSP said. “In Lenskart’s case, we strongly like the first three — the business strength, execution capability, and leadership trustworthiness.”
Despite acknowledging that valuations are on the higher side, DSP believes the eyewear and retail e-commerce sector has compelling growth prospects. The fund compared its move to reallocating from slower-growing, similarly expensive holdings to create space for a promising company like Lenskart.
“When valuations are stretched, we size our positions responsibly. There’s nothing unusual in our approach to Lenskart,” the statement added.
The mutual fund reiterated that its core investment philosophy will remain unchanged, and more insights will be shared in its upcoming annual investor letter.
đź‘“ Lenskart IPO Sees Strong Demand on Day 1
Lenskart Solutions, India’s leading eyewear retailer, opened its ₹7,278 crore IPO for public subscription on Friday, attracting robust investor interest right from the start. By the end of Day 1, the IPO was 1.13 times subscribed, according to NSE data.
- Retail Individual Investors (RIIs) subscribed 1.31 times their allotted quota.
- Non-Institutional Investors (NIIs) subscribed 0.95 times.
- Overall, bids were placed for over 10 crore shares against 9.97 crore on offer.
The IPO includes a fresh issue worth â‚ą2,150 crore and an offer for sale (OFS) of â‚ą5,128 crore by existing shareholders, including SoftBank, Kedaara Capital, and Temasek.
The price band has been set between â‚ą382 and â‚ą402 per share, and the subscription window will remain open until November 4.
Lenskart, founded by Peyush Bansal, has become a dominant player in India’s eyewear market, with strong digital and offline integration and an expanding global footprint. Analysts expect the IPO to draw heavy institutional participation in the coming days as confidence in India’s consumer and tech-driven retail stories remains robust.
With DSP’s backing, the Lenskart IPO gains additional credibility in the eyes of investors — marking one of the most closely watched public issues of 2025.