Should investors book profits or hold Lenskart shares post listing?

Synopsis

Lenskart Solutions is set for a modest stock market debut on Monday. Analysts suggest investors who received allotments can book profits upon listing. The grey market premium has declined significantly. Experts recommend exiting the stock even with small gains. The IPO saw strong subscription across investor categories, particularly from qualified institutional buyers.

Mumbai: Investors should brace for a modest debut of Lenskart Solutions on the stock market when it lists on Monday, analysts said. The company had launched one of this year's largest initial public offerings (IPOs) last week. Those who received allotments can choose to book profits on listing, they said.

"Lenskart shares could list at par with its IPO price," said Sunny Agrawal, head of fundamental research at SBI Securities.

As of Sunday afternoon, the unofficial grey market premium (GMP) - the additional price that investors are willing to pay over the IPO price in the grey market before listing - had declined to ₹15, or 3.7% of the IPO price of ₹402, as per data from ipowatch.in. The GMP was ₹71 per share on October 31, the day the issue opened.

Geetanjali Kedia, IPO expert at SPTulsian Investment Advisers, advises those who received allotments to book profits if the shares list at a premium or exit the company even if it doesn't. Kedia had advised participants against applying to the issue.

Lenskart's ₹7,278-crore IPO was subscribed 28.2 times on the final day of bidding on Tuesday. The qualified institutional buyers' (QIBs) portion was subscribed 40.3 times, while the non-institutional investors' (NIIs) or high-net-worth individuals' portion and the retail investors' portion were subscribed 18.2 times and 7.5 times, respectively. The employee reserved portion saw a subscription of 4.96 times.

"For retail holders who received allotments, if there are listing gains, then one should think about booking profit and exiting the stock," said Vaqarjaved Khan, senior fundamental analyst at Angel One.

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