Lenskart IPO Price Sparks Concern Over Indian Startup Valuations

Lenskart Solutions Ltd.’s $821 million initial public offering was sold out in less than five hours last week. Yet, the eyewear retailer’s pricing has sparked concern over whether Indian startups are being valued too richly as they go public.

DSP Asset Managers Pvt. over the weekend publicly defended its anchor investment in Lenskart after facing social media criticism over the IPO’s valuation. The mutual fund said the company’s business is “strong and scalable,” but conceded the deal was “expensive.”

The share sale opened for bidding on Friday and was fully soldacross investor categories, including retail buyers. However, the ...