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What is the story about?
The initial public offering (IPO) of SoftBank-backed eyewear startup Lenskart Solutions will open for subscription on Friday, October 31, and remain open until November 4. The company is looking to raise up to ₹7,278.02 crore via the IPO.
Lenskart will offer its shares at a price band of ₹382-₹402 apiece, with 10% of the issue reserved for retail investors. One lot will comprise 37 shares, requiring a minimum investment of ₹14,874 at the upper end of the price band.
At this upper price band, the company could be valued at around ₹69,741 crore on a post-issue basis.
The IPO aims to raise fresh capital to fuel business expansion and provide an exit opportunity for early investors.
Should you apply?
Nirmal Bang: Subscribe for long term
Revenue and EBITDA grew at a CAGR of 32.5% and 92.3% (FY23-25). Though the issue looks expensive at a P/E of 235x and EV/EBITDA of 68x (FY25), the valuation appears fair when compared to other retailers like Metro and Trent, and is cushioned by strong future expansion plans.
SBI Securities : Subscribe for long term
The valuation at the upper price band is stretched, which could limit listing gains (10.1x EV/Sales and 68.7x EV/EBITDA on a post-issue basis). However, the company's strong business model and the huge potential of the domestic eyewear market are key positives.
Swastika Investmart: Neutral
Solid business fundamentals but stretched valuations lead to a Neutral rating. P/E >200x and EV/Sales 10x make the IPO valuation extremely demanding with minimal margin for error.
A key point of caution among analysts is the quality of recent profit. The company has become PAT positive in FY25, reporting a profit of ₹297 crore. However, this profit largely stems from a one-time, non-cash accounting gain, leading to high P/E multiples on a normalised basis.
Positive factors cited include the potential of India's vast, under-penetrated eyewear market and the entry of veteran investor Radhakishan Damani, which adds credibility and market confidence.
IPO structure
Lenskart aims to raise ₹2,150 crore through a fresh issue to fund its business expansion. Existing investors will offload 12.76 crore shares through an Offer for Sale (OFS).
The OFS will include stakes from founder and CEO Peyush Bansal, SoftBank's SVF II Lightbulb (Cayman), Kedaara Capital, ChrysCapital's PI Opportunities Fund II, KKR's MacRitchie Investments, and Alpha Wave Ventures.
Ahead of the IPO, SBI Mutual Fund invested ₹100 crore in Lenskart, valuing the company at around $7.7 billion, following a separate pre-IPO transaction where billionaire investor Radhakishan Damani bought shares worth ₹90 crore.
Post-issue, the promoters' stake is expected to fall from 19.9% to 17.7%.
Lenskart anchor book
Ahead of the public issue, Lenskart Solutions has raised ₹3,268.4 crore from anchor investors at ₹402 per share, showing strong institutional interest.
Foreign investors include Government of Singapore, Monetary Authority of Singapore, Government Pension Fund Global (Norway), New World Fund Inc, Fidelity, T Rowe Price, BlackRock, Capital Group, Goldman Sachs, Nomura, and JP Morgan.
Domestic institutional investors include leading mutual funds such as SBI Mutual Fund, HDFC MF, ICICI Prudential MF, Kotak MF, Axis MF, Aditya Birla Sun Life Mutual Fund, and Mirae Asset.
Lenskart IPO GMP
According to market observers, the shares of Lenskart are commanding a premium of around 17% in the unregulated market. Investorgain quoted a GMP of approximately ₹70 for the shares of the company, which indicated a potential listing gain of around 17% (at the upper price band of ₹402).
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.
Financials
Over the past three years, the company's revenue has grown over 30% annually, while EBITDA has surged more than 90% a year.
For FY25, Lenskart reported revenue of ₹6,652 crore and a profit of ₹297 crore, including the aforementioned one-time gain. The company operates over 2,100 stores, with around 40% of its revenue coming from international markets, highlighting its global ambitions.
Founded by "Shark Tank India" judge Peyush Bansal, Lenskart is the latest high-profile name to go public. This IPO is expected to be the fourth-largest in India in 2025, after Tata Capital, HDB Financial Services, and LG Electronics.
Kotak Mahindra Capital, Axis Bank, Avendus Capital, Intensive Fiscal Services, and the local units of Citigroup and Morgan Stanley are advising on the offering.
Lenskart will offer its shares at a price band of ₹382-₹402 apiece, with 10% of the issue reserved for retail investors. One lot will comprise 37 shares, requiring a minimum investment of ₹14,874 at the upper end of the price band.
At this upper price band, the company could be valued at around ₹69,741 crore on a post-issue basis.
The IPO aims to raise fresh capital to fuel business expansion and provide an exit opportunity for early investors.
Should you apply?
Nirmal Bang: Subscribe for long term
Revenue and EBITDA grew at a CAGR of 32.5% and 92.3% (FY23-25). Though the issue looks expensive at a P/E of 235x and EV/EBITDA of 68x (FY25), the valuation appears fair when compared to other retailers like Metro and Trent, and is cushioned by strong future expansion plans.
SBI Securities : Subscribe for long term
The valuation at the upper price band is stretched, which could limit listing gains (10.1x EV/Sales and 68.7x EV/EBITDA on a post-issue basis). However, the company's strong business model and the huge potential of the domestic eyewear market are key positives.
Swastika Investmart: Neutral
Solid business fundamentals but stretched valuations lead to a Neutral rating. P/E >200x and EV/Sales 10x make the IPO valuation extremely demanding with minimal margin for error.
A key point of caution among analysts is the quality of recent profit. The company has become PAT positive in FY25, reporting a profit of ₹297 crore. However, this profit largely stems from a one-time, non-cash accounting gain, leading to high P/E multiples on a normalised basis.
Positive factors cited include the potential of India's vast, under-penetrated eyewear market and the entry of veteran investor Radhakishan Damani, which adds credibility and market confidence.
IPO structure
Lenskart aims to raise ₹2,150 crore through a fresh issue to fund its business expansion. Existing investors will offload 12.76 crore shares through an Offer for Sale (OFS).
The OFS will include stakes from founder and CEO Peyush Bansal, SoftBank's SVF II Lightbulb (Cayman), Kedaara Capital, ChrysCapital's PI Opportunities Fund II, KKR's MacRitchie Investments, and Alpha Wave Ventures.
Ahead of the IPO, SBI Mutual Fund invested ₹100 crore in Lenskart, valuing the company at around $7.7 billion, following a separate pre-IPO transaction where billionaire investor Radhakishan Damani bought shares worth ₹90 crore.
Post-issue, the promoters' stake is expected to fall from 19.9% to 17.7%.
Lenskart anchor book
Ahead of the public issue, Lenskart Solutions has raised ₹3,268.4 crore from anchor investors at ₹402 per share, showing strong institutional interest.
Foreign investors include Government of Singapore, Monetary Authority of Singapore, Government Pension Fund Global (Norway), New World Fund Inc, Fidelity, T Rowe Price, BlackRock, Capital Group, Goldman Sachs, Nomura, and JP Morgan.
Domestic institutional investors include leading mutual funds such as SBI Mutual Fund, HDFC MF, ICICI Prudential MF, Kotak MF, Axis MF, Aditya Birla Sun Life Mutual Fund, and Mirae Asset.
Lenskart IPO GMP
According to market observers, the shares of Lenskart are commanding a premium of around 17% in the unregulated market. Investorgain quoted a GMP of approximately ₹70 for the shares of the company, which indicated a potential listing gain of around 17% (at the upper price band of ₹402).
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.
Financials
Over the past three years, the company's revenue has grown over 30% annually, while EBITDA has surged more than 90% a year.
For FY25, Lenskart reported revenue of ₹6,652 crore and a profit of ₹297 crore, including the aforementioned one-time gain. The company operates over 2,100 stores, with around 40% of its revenue coming from international markets, highlighting its global ambitions.
Founded by "Shark Tank India" judge Peyush Bansal, Lenskart is the latest high-profile name to go public. This IPO is expected to be the fourth-largest in India in 2025, after Tata Capital, HDB Financial Services, and LG Electronics.
Kotak Mahindra Capital, Axis Bank, Avendus Capital, Intensive Fiscal Services, and the local units of Citigroup and Morgan Stanley are advising on the offering.
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