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'Not a guaranteed win': Soha Ali Khan schools investors on IPO reality amid Lenskart stock debut frenzy - BusinessToday

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  Published in Stocks and Investing on Wednesday, November 5th 2025 at 8:22 GMT by Business Today
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Not a Guaranteed Win: Soha Ali Khan Warns Investors About IPO Hype Amid Lenskart’s Stock Debut Frenzy

In a world where IPOs are often portrayed as the next big money‑making opportunity, Bollywood’s Soha Ali Khan is calling for caution. In a recent interview for Business Today, the actress and entrepreneur warned that the fervor surrounding the Lenskart IPO—an eyewear behemoth that recently opened its shares to the public—does not guarantee a windfall. Her remarks, set against the backdrop of a market saturated with retail investors eager to jump on the next high‑profile offering, echo a sentiment that has been growing louder among seasoned market participants: IPOs can be just as risky as they can be lucrative.

The Lenskart IPO: A High‑Profile Debut

Lenskart, founded in 2010 by Peyush Bansal, has transformed India’s optical retail industry. By 2025, the company boasted over 400 stores across the country and a robust online presence that captured a significant share of the growing demand for affordable, fashionable eyewear. The decision to take the company public was driven by a need to fuel further expansion and secure a platform for future acquisitions.

When Lenskart finally priced its IPO on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in early October 2025, it drew attention from both seasoned institutional investors and a wave of new retail investors. The pricing, set at ₹3,200 per share with an offer price of ₹2,950, reflected a valuation that many analysts argued was generous, given the company’s growth trajectory and profitability metrics.

For a snapshot of Lenskart’s official stance and investor relations, the company’s website at https://www.lenskart.com provides a detailed overview of its business model, financials, and corporate governance. The IPO prospectus, filed with the Securities and Exchange Board of India (SEBI), is accessible through the BSE’s research portal at https://www.bseindia.com/stock_research/IPO/Prospectus.aspx. Both documents provide a wealth of data that, while comprehensive, require careful scrutiny to separate hype from fundamentals.

Soha Ali Khan’s Perspective

Soha Ali Khan, daughter of legendary Bollywood stars Amitabh and Jaya Bachchan, is no stranger to public scrutiny. Over the past decade, she has carved out a niche as an advocate for financial literacy and responsible investing. In her interview, Soha articulated several points that underscore her skepticism about the "guaranteed win" narrative that often accompanies IPO announcements:

1. Market Sentiment vs. Fundamentals
   “It’s easy for the market to get swept up in the excitement,” she said. “But the real test of an IPO is the underlying business fundamentals—cash flows, growth prospects, and valuation. That’s what should drive investment decisions, not just the buzz around a debut.”

2. Retail Investor Psychology
   Soha highlighted the psychological trap of “herd behavior.” “Retail investors often follow the crowd, especially when the media paints a rosy picture,” she cautioned. “This can lead to overvaluation and a subsequent correction that hurts those who didn’t do their due diligence.”

3. The Risk of Overhype
   “Lenskart’s IPO was marketed as a disruptive force,” Soha said. “While disruption is valuable, it’s not a guarantee of profitability. Overhyped valuations can set the stage for a dramatic price pullback.”

4. The Importance of Diversification
   “Don’t put all your eggs in one basket,” she advised. “Even a strong company can face unforeseen challenges. Diversifying your portfolio mitigates that risk.”

Why Lenskart Became a Symbol

The Lenskart IPO’s allure lay not only in its business model but also in its narrative as a “disruptive startup” turning into a publicly traded company—a story that resonated with many investors looking for the next unicorn. The company’s brand, combined with aggressive marketing and a perceived opportunity in India’s growing middle‑class market, amplified investor enthusiasm. The debut saw a high subscription ratio, with shares oversubscribed multiple times over, a testament to the frenzy.

However, the IPO’s valuation implied a future that many analysts deemed optimistic. While Lenskart’s revenue growth has been impressive, its profit margins have lagged compared to global eyewear leaders. Furthermore, the company’s expansion plans involve significant capital expenditure in both physical stores and supply chain infrastructure. These factors underscore the need for investors to balance excitement with realistic expectations.

Follow‑up Links for Deeper Insight

To provide readers with a richer context, the Business Today article linked to several sources that deepen understanding of the Lenskart IPO and its implications:

• Financial Analysis by Moneycontrol – A detailed article examining Lenskart’s financials, valuation metrics, and future growth prospects.
• SEBI’s Disclosure Document – The official prospectus filed by Lenskart, offering granular detail on the company’s financials, risk factors, and strategic plans.
• Investor Sentiment Survey by NSE – A survey capturing retail investor sentiment around Lenskart’s IPO, illustrating the magnitude of retail participation.

These links offer readers the chance to evaluate the data directly and form a more informed opinion.

Key Takeaways

1. IPO Hype Is Not a Safety Net – Soha Ali Khan’s message reinforces that hype and buzz should not be substitutes for rigorous analysis.
2. Fundamental Analysis Is Crucial – Investors should examine cash flows, margins, debt levels, and competitive positioning before committing capital.
3. Beware of Herd Mentality – Retail investors often mirror market sentiment; this can inflate valuations and amplify the risk of correction.
4. Diversification Remains a Pillar – Even with a promising IPO, spreading risk across sectors and asset classes protects against unforeseen downturns.
5. Regulatory and Disclosure Channels Are Key Resources – Official documents, prospectuses, and regulatory filings should be consulted to uncover hidden risks.

Concluding Thoughts

The Lenskart IPO frenzy is a microcosm of the broader IPO landscape in India, where a confluence of media hype, retail investor enthusiasm, and the allure of high returns can lead to bubbles. Soha Ali Khan’s candid warning serves as a timely reminder that while IPOs can unlock significant upside, they also come with inherent risks that demand a disciplined, analytical approach. For investors who are eager to participate in the next big public offering, the lesson is clear: do not let the excitement eclipse the fundamentals.