India’s eyewear giant Lenskart is making headlines ahead of its much-awaited Initial Public Offering (IPO). While SBI Mutual Fund has invested ₹100 crore in the company ahead of the listing, questions have been raised about the sharp rise in Lenskart’s valuation in recent months.

SBI Mutual Fund Bets Big on Lenskart

According to regulatory filings, SBI Optimal Equity Fund and SBI Emergent Fund together acquired 24.87 lakh shares of Lenskart at a transfer price of ₹402 per share, valuing the company at around $7.7 billion (₹64,000 crore).

The investment comes just as Lenskart gears up for its IPO, expected to raise around ₹7,278 crore. The IPO is reportedly scheduled to take place between October 31 and November 4.

This strategic investment from SBI Mutual Fund indicates strong institutional confidence in Lenskart’s long-term growth potential, especially given the company’s rapid expansion in both Indian and international markets.

Valuation Controversy Sparks Debate

However, the Lenskart IPO has also sparked a wave of criticism and debate among market watchers and investors. Multiple financial influencers, including Nalini Unagar, have raised questions about how Lenskart’s valuation jumped from ₹8,700 crore in July to nearly ₹70,000 crore within just three months.

The sudden valuation leap has prompted calls for greater transparency from SEBI and Lenskart, with analysts urging the company to clarify the reasons behind this sharp surge before the IPO launch.

What It Means for Investors

The contrasting developments — strong backing from major institutional investors like SBI, and growing scrutiny over valuation — paint a mixed picture for potential retail investors.

While the SBI investment may boost market confidence, the valuation concerns highlight the importance of due diligence before subscribing to the IPO. Experts suggest waiting for detailed financial disclosures and SEBI’s observations before making any investment decisions.