The primary market is active with three mainboard IPOs: Lenskart, Orkla India, and Studds Accessories. The Orkla India IPO, closing today, has notably drawn interest from non-institutional investors. Studds Accessories is fully subscribed, while Lenskart is gaining traction as investors assess its valuations. Trends in grey market premiums and expert insights are also under consideration.
Orkla India IPO GMP is ₹75, suggesting an estimated listing price of ₹805, which is 10.27% higher than the IPO price of ₹730.
Lenskart’s IPO GMP today is ₹70, suggesting an estimated listing price of ₹472 per share, which is 17.41% higher than the IPO price of ₹402.
Orkla India focuses on spices and ready-to-eat foods, launching as a public brand owner and manufacturer. Studds, a major helmet producer, faces limited competition and holds a significant market share despite a few branded rivals. The helmet market benefits from low penetration rates. Studds has a simple business model with modest exports. The IPO price is competitive with the Nifty 50, though it is an Offer for Sale (OFS) and smaller than many others.
For Orkla India, the issue size is approximately 1,600 crores and is entirely an Offer for Sale (OFS), though it may be seen as overpriced in a competitive spices and ready-to-eat food market. In contrast, Lenskart’s IPO faces volatile grey market activity. With a single-digit market share, Lenskart is competing innovatively by emphasizing quality and affordability, featuring a buy one, get one free offer as its unique selling proposition.
Lenskart’s IPO highlights its role as a logistics and tech-enabled eyewear provider. Valued at approximately 70,000 crores, this valuation is considered high, particularly with a revenue multiple near 10.5, supported by its revenue of around 6,500 crores.
Studds Accessories IPO is considered the safest investment option due to its favorable pricing and valuation, along with a straightforward business model that indicates limited risk. This makes potential gains appear reliable, unlike the uncertain prospects for other options, as stated by Arun Kejriwal.
