New Delhi, Nov. 4 -- At a valuation of Rs.70,000 crore-roughly ten times its sales and 230 times its projected FY25 earnings-Lenskart's initial public offering (IPO) is testing the limits of investor optimism. Yet mutual funds and alternate investment funds lined up in its Rs.7,278 crore book-building issue, betting that the eyewear retailer's profitability turnaround and category dominance justify the premium.

The IPO, which opened on 31 October and closes on 4 November, comprises a fresh issue of Rs.2,150 crore and an offer-for-sale of Rs.5,128 crore. Lenskart raised Rs.3,268 crore from 147 anchor investors ahead of the offer, including foreign institutions such as the Government of Singapore, T Rowe Price, BlackRock, Fidelity, Goldman...