Eyewear retailer Lenskart Solutions is preparing for its highly anticipated initial public offering (IPO), targeting ₹7,278 crore through a mix of fresh issue and offer-for-sale (OFS) shares. Founded by Peyush Bansal in 2010, Lenskart has grown rapidly to dominate 50% of India’s organized eyewear market, which is valued at around $6 billion. However, investors are reportedly closely scrutinizing the IPO due to the company’s high valuation.
Lenskart’s IPO opens on October 31 and closes on November 4, with shares priced between ₹382 and ₹402 each. The public issue includes a combination of a fresh issue and an offer-for-sale, where 70% of the IPO comes from existing investors selling their shares. Key sellers include SoftBank, Kedaara Capital, ChrysCapital, KKR, and founder Peyush Bansal himself
The IPO is expected to value the company at around ₹69,741 crore post-issue, and the promoter’s stake is likely to reduce from 19.9% to 17.7% after the listing. Funds from the fresh issue will support store expansion, technology upgrades, brand marketing, and potential acquisitions over the next three years, while proceeds from OFS will go directly to selling shareholders.
Lenskart has shown strong growth in recent years. For FY25, the company reported:
Revenue: ₹6,652 crore
Net profit: ₹297 crore (including a one-time gain)
The company has maintained an annual revenue growth of over 30% and EBITDA growth exceeding 90%, operating more than 2,100 stores, with 40% of revenue coming from international markets.
The IPO has attracted attention because of Lenskart’s high valuation: roughly 230 times its price-to-earnings ratio and 10.5 times sales on trailing numbers. This is considerably higher than typical industry multiples, raising concerns about potential listing gains.
SBI Securities noted that while the valuation seems stretched, Lenskart’s strong business model positions it well to benefit from India’s fast-growing, underpenetrated organized eyewear market. There is also room for profitability improvement as the business scales, especially when compared to international peers with robust margins.
Ahead of the IPO, prominent investors have shown confidence in Lenskart. SBI Mutual Fund invested ₹100 crore, valuing the company at around $7.7 billion, while billionaire investor Radhakishan Damani picked up shares worth ₹90 crore in a separate pre-IPO deal.
Lenskart’s IPO is expected to be closely watched by retail and institutional investors alike. The funds raised will support the company’s growth and expansion plans, while existing investors capitalize on the OFS. Market analysts will particularly focus on how the company balances aggressive expansion with profitability as it transitions into a public entity.
Lenskart’s IPO marks a major milestone for one of India’s fastest-growing consumer tech-driven retailers. While valuation concerns remain, its dominant market position, strong growth, and expansion plans make it a high-profile story in India’s IPO calendar. (Inputs sourced from Indian media reports)
