Lenskart IPO Opens October 31: Rs 7,278 Crore Offering at Rs 72,719 Crore Valuation
Eyewear retailer Lenskart Solutions, backed by marquee global investors including SoftBank, ADIA, Temasek, and Kedaara Capital, will launch its maiden public offering on October 31 with an estimated total size of Rs 7,278 crore at a valuation of Rs 72,719 crore. The technology-driven eyewear company, claiming to be India's largest seller of prescription eyeglasses among organized retailers, will raise Rs 2,150 crore through fresh share issuance while promoters and investors offload 12.75 crore equity shares via offer-for-sale.
IPO Timeline and Key Dates
Lenskart has finalized a comprehensive schedule for its much-anticipated public offering:
- Anchor Book Opening: October 30 (one-day window)
- Public Subscription Opens: October 31
- Public Subscription Closes: November 4
- Share Allotment Finalization: November 6
- Trading Commencement: November 10 on BSE and NSE
The timeline provides investors with a five-day subscription window following the anchor investor allocation, with listing expected within approximately ten days of subscription closure.
IPO Structure: Fresh Issue and OFS
Fresh Issue Component
- Amount: Rs 2,150 crore
- Purpose: Funding company growth initiatives
- Use: Store expansion, technology, marketing, acquisitions
Offer-For-Sale Component
- Shares: 12.75 crore equity shares
- Sellers: Promoters and existing investors
- Revised Down: From 13.22 crore shares in DRHP
- Reduction: 47.26 lakh shares cut by founder Neha Bansal
Valuation and Pricing Reference
The estimated IPO size and valuation are based on Rs 402 per share—the price at which billionaire investor Radhakishan Damani recently acquired a pre-IPO stake:
- Expected Issue Price: Rs 402 per share (reference point)
- Total Offer Size: Rs 7,278.01 crore
- Company Valuation: Rs 72,719.26 crore
The final price band will be disclosed closer to the IPO opening, though the Rs 402 reference provides indication of likely pricing range.
Radhakishan Damani's Pre-IPO Investment
In a significant endorsement, Shrikanta R Damani, wife of DMart founder Radhakishan Damani, acquired 22,38,806 equity shares (0.13% stake) in Lenskart at Rs 402 per share on October 23, 2025, from promoter Neha Bansal. The transaction valued at Rs 90 crore demonstrates high-profile investor confidence in Lenskart's prospects.
The Damani family's investment provides important validation given Radhakishan Damani's legendary track record in value investing and retail sector expertise through DMart.
Selling Shareholders and Exit Strategies
Multiple stakeholders will partially or fully exit through the OFS:
Promoters
- Peyush Bansal (co-founder)
- Neha Bansal (co-founder, reduced OFS by 47.26 lakh shares)
- Amit Chaudhary (co-founder)
- Sumeet Kapahi (co-founder)
Institutional Investors
- SoftBank's SVF II Lightbulb (Cayman): Partial exit
- Schroders Capital Private Equity Asia Mauritius: Complete exit of 1.9 crore shares (1.13% stake)
- PI Opportunities Fund: Partial exit
- MacRitchie Investments: Partial exit
- Kedaara Capital Fund: Partial exit
- Alpha Wave: Partial exit
Schroders Capital's complete exit represents the most significant individual shareholder liquidation in the offering.
Current Shareholding Pattern
At the time of RHP filing, Lenskart's ownership structure reflects diverse stakeholder base:
- Promoters: 19.85%
- Public Shareholders: 79.72%
- Employee Trusts: 0.43%
The relatively low promoter holding and high public shareholding reflects multiple previous funding rounds diluting founder stakes while bringing in institutional capital.
Reservation and Allocation Structure
Lenskart has structured its IPO to balance institutional, non-institutional, and retail participation:
Employee Reservation
- Amount: Rs 15 crore worth of shares
- Purpose: Employee participation in company ownership
Category-wise Allocation (Excluding Employee Portion)
- Qualified Institutional Buyers: Up to 75% of net offer
- Non-Institutional Investors: 15% allocation
- Retail Investors: 10% allocation
The QIB-heavy allocation reflects expectation of strong institutional demand given Lenskart's brand strength and growth trajectory.
Use of Fresh Issue Proceeds
The Rs 2,150 crore fresh capital will be deployed across strategic growth initiatives:
Store Expansion
- New CoCo Stores: Rs 272.6 crore for establishing company-owned, company-operated stores in India
- Lease/Rent/License Payments: Rs 591.4 crore for CoCo store agreements
- Total Retail Expansion: Rs 864 crore (40% of fresh issue)
Technology and Infrastructure
- Technology & Cloud Infrastructure: Rs 213.4 crore
- Purpose: Digital platform enhancement, AI capabilities, customer experience
Brand Building
- Marketing & Promotion: Rs 320 crore
- Focus: Brand awareness, customer acquisition, market expansion
Strategic Flexibility
- Inorganic Acquisitions: Unidentified amount for M&A opportunities
- General Corporate Purposes: Working capital and operational requirements
Business Overview and Market Position
Lenskart operates as a technology-driven eyewear retailer claiming leadership in prescription eyeglasses volume among organized retailers. The Gurugram-based company has established comprehensive omnichannel presence combining online platform with extensive physical retail network.
Geographic Presence
- Primary Market: India (largest revenue contributor)
- International Expansion: Japan, Southeast Asia, Middle East
- Strategy: Selective international market entry based on opportunity assessment
Competitive Landscape
In India's organized eyewear retail sector, Lenskart competes with:
- Titan Company: Eyecare division of diversified conglomerate
- Eyegear Optics India: Established optical retailer
- Gangar Opticians: Traditional optical chain
- GKB Opticals: Regional player
- Lawrence and Mayo (India): Heritage optical brand
- Specsmakers Opticians: Growing retail chain
Financial Performance: Turnaround Story
Full Year FY25 Performance
- Net Profit: Rs 297.3 crore (versus Rs 10.1 crore loss in FY24)
- Revenue: Rs 6,652.5 crore (22.6% growth from Rs 5,427.7 crore)
- Milestone: Turned profitable after years of losses
Q1 FY26 Performance (June Quarter)
- Net Profit: Rs 61.2 crore (versus Rs 11 crore loss in Q1 FY25)
- Revenue: Rs 1,894.5 crore (24.6% growth from Rs 1,520.4 crore)
- Trend: Sustained profitability with accelerating revenue growth
The impressive turnaround from losses to profitability, combined with sustained revenue growth exceeding 20%, demonstrates improving unit economics and operational leverage as the business scales.
Book Running Lead Managers
Lenskart has appointed a consortium of leading investment banks:
- Kotak Mahindra Capital Company
- Morgan Stanley India Company
- Avendus Capital
- Citigroup Global Markets India
- Axis Capital
- Intensive Fiscal Services
This diverse bank consortium brings expertise across domestic and international institutional investors, supporting strong placement.
Investment Considerations
Positive Factors
- Market leader in organized eyewear retail by volume
- Recent profitability turnaround with sustained momentum
- Strong revenue growth exceeding 20% annually
- Omnichannel model combining online and offline presence
- Marquee investor backing and Damani family endorsement
- Technology differentiation in customer experience
- Expanding international presence
Considerations
- Valuation at Rs 72,719 crore reflects high growth expectations
- Large OFS component (12.75 crore shares) means no dilution benefit
- Competitive eyewear retail market
- Capital intensity of store expansion model
- Recent profitability requires sustainability demonstration
- International expansion execution risks
Grey Market Premium Watch
As the IPO opening approaches, investors will monitor grey market premium indicators for demand signals. The Damani family's Rs 90 crore investment at Rs 402 per share provides important anchor pricing reference.
Conclusion
Lenskart's October 31 IPO represents a significant opportunity for investors to participate in India's leading organized eyewear retailer's growth story. The Rs 7,278 crore offering at an estimated Rs 72,719 crore valuation reflects the company's transformation from loss-making startup to profitable market leader achieving 20%+ revenue growth.
The Rs 2,150 crore fresh capital will fund aggressive store expansion (Rs 864 crore), technology enhancement (Rs 213 crore), and brand building (Rs 320 crore), supporting continued market share gains. Marquee investor backing and the Damani family's recent Rs 90 crore investment provide credibility, though the Rs 402 reference price will face market validation during the subscription period.
With anchor book opening October 30 and public subscription from October 31-November 4, investors have a narrow window to evaluate this high-profile consumer retail IPO. The November 10 listing will reveal market appetite for eyewear retail at premium valuations, testing whether strong fundamentals justify rich pricing in India's competitive IPO market.
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