The Indian IPO market continues to be a space of growing excitement for investors looking to participate in the early stages of strong and emerging companies. With retail and institutional participation on the rise, the grey market—often viewed as an indicator of listing-day enthusiasm—has shown promising trends across several upcoming IPOs. Companies such as Lenskart and Groww have particularly drawn investor attention, as their grey market premiums (GMPs) suggest potential listing gains of up to 21%.
While these numbers attract those chasing quick returns, it’s essential to take a closer look at what’s driving the momentum and whether these trends reflect genuine long-term potential or just short-term sentiment.
The Growing Attraction Toward IPOs
Over the past few years, India’s IPO market has witnessed strong participation from both retail and institutional investors. Companies across diverse sectors—from consumer technology and financial services to renewable energy and manufacturing—are tapping the capital market to raise funds and fuel expansion.
Investor interest is being driven by multiple factors: improving corporate earnings, digital business models gaining traction, and a strong domestic liquidity environment. At the same time, high-profile listings have offered attractive short-term gains in recent months, which has further boosted participation.
The grey market, although unofficial and unregulated, offers an early glimpse into market expectations before a stock gets listed. When premiums rise sharply, it generally reflects bullish sentiment and strong anticipated demand for the shares on listing day.
Lenskart IPO – Eyewear Giant Draws Investor Focus
Among the key names in focus, Lenskart stands out due to its well-established brand and large-scale retail footprint across India. The company, which began as an online eyewear platform, has successfully built a strong omnichannel presence, combining both online convenience and offline experience through its stores.
Lenskart’s business model, focused on affordability, accessibility, and digital-first innovation, has helped it maintain consistent growth. The company has also expanded internationally, especially in the Middle East and Southeast Asia, strengthening its global reach.
According to recent grey market discussions, Lenskart’s IPO is expected to command a premium indicating likely listing gains in the range of 15% to 20%. This reflects investors’ belief in the company’s strong brand equity, recurring demand, and potential for scalable growth. However, as with any consumer-focused business, competition and input costs remain areas to monitor carefully.
Groww IPO – Riding on the Digital Investment Wave
The second major name attracting attention is Groww, one of India’s fastest-growing investment platforms. Known for its user-friendly interface and focus on millennials and first-time investors, Groww has disrupted the financial services landscape by simplifying investment in mutual funds, stocks, and other instruments.
Its IPO comes at a time when the country is witnessing a surge in digital investing, with more individuals using online platforms to build long-term portfolios. The company’s rapid rise in user base and revenue has positioned it as a key player in the fintech space.
The grey market premium for Groww suggests expected listing-day gains in a similar range to Lenskart’s, reflecting investor optimism about the company’s profitability trajectory and digital reach. However, it’s worth noting that fintech valuations tend to be volatile and often depend on user growth, regulatory developments, and the broader market outlook.
Other IPOs Showing Investor Interest
Beyond Lenskart and Groww, the grey market trends highlight enthusiasm for five other IPOs from sectors such as renewable energy, consumer products, and technology. Companies from these industries are benefiting from favorable policy support and sectoral growth trends.
Grey market data indicates that these IPOs could deliver listing gains ranging between 10% and 21%, depending on how subscription levels and market conditions evolve closer to their respective listing dates. However, these estimates remain subject to change, as GMPs fluctuate based on demand and sentiment in the unlisted space.
Understanding the Role and Risks of GMP
While the grey market premium offers a snapshot of investor mood, it should not be viewed as a guaranteed indicator of listing performance. The grey market operates outside official regulatory oversight, and the premiums often fluctuate sharply based on short-term speculation, liquidity, and rumors.
Investors should therefore exercise caution and not rely solely on GMP data to make investment decisions. Evaluating the fundamentals—such as revenue growth, profitability, debt levels, and valuation—remains critical before subscribing to any IPO. It is also important to assess the company’s long-term vision and management quality rather than focusing only on potential listing-day returns.
Market Outlook and Final Take
The broader equity market environment continues to influence IPO activity. Positive foreign institutional inflows, stable economic indicators, and strong domestic consumption trends are keeping investor sentiment positive. However, global uncertainties, rising interest rates, or fluctuations in commodity prices can quickly shift market mood, impacting listing-day performance.
As companies like Lenskart and Groww prepare to enter the market, their performance could set the tone for upcoming IPOs in the months ahead. The grey market premiums currently reflect healthy enthusiasm, but investors should balance short-term opportunities with long-term investment discipline.
In conclusion, the recent surge in IPO GMPs, particularly for names like Lenskart and Groww, signals sustained investor interest in India’s expanding equity market. While the potential for 21% listing gains may appear attractive, prudent investors will look beyond the hype—focusing instead on fundamentals, long-term prospects, and risk management before chasing returns.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
