Investor Shankar Sharma Defends Lenskart IPO, Calling Out ‘Organised Campaign’

Veteran investor Shankar Sharma has ignited a fresh debate surrounding the upcoming Initial Public Offering (IPO) of eyewear giant Lenskart, staunchly defending its valuation against a wave of market skepticism. Sharma took to the social platform X to argue that the company is being unfairly targeted, a sentiment he articulated with the rhetorical Hindi phrase: “Phir aisa kya ghor paap kar raha Lenskart, bhaiya?” (So what grave sin is Lenskart committing?).

The Heart of the Valuation Debate

Lenskart is set to launch a ₹7,278 crore IPO, with a proposed valuation of around ₹70,000 crore. Critics have pointed to the company’s high valuation metrics, including a price-to-sales (P/S) multiple exceeding 10x and a staggering price-to-earnings (P/E) ratio of approximately 230x, which they view as stretched, especially given its relatively short track record of profitability.

Sharma, however, framed Lenskart’s valuation as a “steal” when juxtaposed with the debuts of several other high-profile Indian tech startups in recent years.

• Lenskart’s Valuation: Trading at roughly 10x its annual sales (revenue multiple).
• Past Tech Listings: Companies like Paytm, Nykaa, Zomato, PB Fintech (Policybazaar), and CarTrade went public at significantly higher P/S multiples, often in the range of 25-50x their revenues, despite many of them also registering substantial losses at the time of their IPOs.

Sharma’s core argument is that if the market readily accepted those ultra-high multiples for loss-making or high-burn tech firms, then Lenskart, which has recently turned profitable, is being singled out for a comparatively modest valuation.

Allegations of an ‘Organised Campaign’

In a notable accusation, Sharma alleged that there is an “organised campaign“ being run against Lenskart, suggesting a coordinated effort to undermine investor confidence in the offering. The investor, who clarified that he holds no shares in Lenskart or “any other Kart,” suggested his position is one of objective comparison rather than personal financial interest.

The controversy surrounding Lenskart has been intensified by reports noting a sharp increase in the share price between an internal round and the IPO. Concerns arose after reports indicated that CEO Peyush Bansal acquired shares at around ₹52 in July, using a loan, only for the IPO price band to be set at ₹382–₹402 just a few months later—an approximate 8x jump. Lenskart’s management has sought to counter the overvaluation critique by focusing on its long-term strategy of global expansion and creating value for the customer.

Despite the highly polarized debate, the IPO has attracted significant institutional interest, indicating that not all market participants share the skepticism. As the offering opens for subscription, the public’s appetite for the latest consumer-tech debut will determine whether Sharma’s ‘steal’ assessment or the critics’ ‘overvalued’ tag will ultimately hold true.