Lenskart IPO opens for subscription on October 31: GMP, risk factors to watch

The ₹7,278.02 crore initial public offering (IPO) of SoftBank-backed eyewear startup Lenskart Solutions will be opening for subscription on Friday, October 31. The issue will close for bidding on November 4.

Price band for the issue has been fixed between ₹382 - ₹402 per share, with 10% of the IPO reserved for retail investors. One lot will involve 37 shares and will entail a minimum investment of ₹14,874 per lot.

The eyewear retailer is seeking a valuation of about ₹69,500 crore through its issue.

Here are some key risk factors for investors to know before the issue opens for subscription:

Import risk: The company sources some of its raw materials and frames from China, where it also operates a manufacturing facility via Boafeng Framekart Technology Ltd (JV – company holds 51% stake). The JV was incorporated

in 2018 and is engaged in the production and sale of spectacle lenses, frames and accessories. The supply of raw materials and finished goods from suppliers in China may be disrupted due to factors outside of the control of the company and thus, could adversely affect its operations.

Risk from medical advancements: The company operates in the eyewear industry, which is subject to technological changes and innovations that may affect the demand for its products. In particular, medical advancements in eyecare, such as laser-assisted in situ keratomileusis (LASIK) and small incision lenticule extraction (SMILE) surgeries, may reduce the need for corrective eyewear among potential customers. Refractive error correction through surgical procedures such as LASIK and SMILE is increasingly accessible across emerging markets.

Franchisee-operated retail stores: A portion of the company's retail stores are owned or operated through franchise agreements with third-party entities. As of Jun'25, the company operated 472 franchise stores globally which represented 22% of its total retail store network. Under these franchise agreements, the company provides its franchisees with the right to use brand name, intellectual property (including trademarks, designs, patents, designs, as well as marketing support), and in-turn receives a fixed one-time license fee. However, the company does not have complete operational or financial control over the actions of franchisees. As a result, there lies a risk that franchisees may take actions that are inconsistent with the company’s brand standards, operational policies or strategic objectives.

Lenskart IPO details

According to market observers, the shares of the company are commanding a premium of 19% in the unregulated market today.

However, it is important to note that grey market premiums are just an indicator of how the company's shares are stacked up in the unlisted market and are subject to change rapidly.

Apart from the fresh issue, there would be an offer-for-sale (OFS) component.

The Gurgaon-based company is issuing fresh shares worth ₹2,150 crore in the offering, while existing investors including its founders, SoftBank and Temasek are selling about 12.8 crore equity shares.

Proceeds from the issue will be used for various strategic initiatives, including capital expenditure for setting up new company-operated, company-owned (CoCo) stores in India; payments related to lease, rent, and license agreements for these CoCo stores; investments in technology and cloud infrastructure; brand marketing and business promotion to enhance brand awareness; potential unidentified inorganic acquisitions; and general corporate purposes.

The public issue follows a ₹90 crore pre-IPO funding round from billionaire investor Radhakishan Damani, founder of Avenue Supermarts (DMart).

Lenskart is operating in a market projected to grow at a double-digit pace over the next five years. Its promoters include Japan's SoftBank, Mumbai-based private equity firm Kedaara Capital Advisors and Singapore state investor Temasek.

Promoters' shareholding in the company stood at 19.85% at the time of filing of RHP, while public shareholders held 79.72% stake, and the remaining 0.43% shares are owned by employee trusts.

The company has a presence across metro, Tier-1, and Tier-2 cities, as well as international operations in Southeast Asia and the Middle East. Lenskart operates 2,067 stores in India and 656 overseas.

In FY25, Lenskart posted a net profit of ₹297 crore, marking a sharp turnaround from a loss of ₹10 crore in FY24. The company's revenue surged 22% year-on-year to ₹6,625 crore, driven by rising domestic demand and expanding international operations.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Avendus Capital, Citigroup Global Markets India, Axis Capital, and Intensive Fiscal Services are acting as the book-running lead managers for the Lenskart Solutions IPO.

The allotment for the Lenskart Solutions IPO is expected to be finalised on November 6 and the company will make its debut on the stock exchanges on November 10.