Lenskart IPO: A Strategic Move into Public Markets

Lenskart Solutions, India’s largest omnichannel eyewear company, has marked a pivotal moment by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company plans to raise ₹2,150 crore via a fresh issue and facilitate an Offer‑for‑Sale (OFS) of approximately 132.3 million shares by existing investors and promoters—resulting in a total IPO size estimated between ₹7,500 and ₹8,000 crore (US $850–900 million).

Shareholders granted approval in late July 2025, and Lenskart is now expected to submit their public DRHP (rather than via SEBI’s confidential route) imminently.

Size, Valuation, and Offer Structure

• Fresh capital: ₹2,150 crore (≈ US $247 million)

• Offer‑for‑Sale (OFS): ~132.3 million shares sold by marquee investors and promoters.

• Target valuation: ₹70,000–75,000 crore, equivalent to US $8–9 billion.

This proposed size places Lenskart among the largest tech‑consumer listings in India in 2025, alongside Tata Capital and LG Electronics.

Promoter Activity and Pre‑IPO Moves

In an interesting internal transaction, co‑founder and CEO Peyush Bansal acquired ~42.7 million shares at ₹52 each, valuing the company at roughly US $1 billion. This constitutes a roughly 2.5% stake increase ahead of the IPO.

Conversely, he is also selling ~20.5 million shares in the OFS; collectively, founders including Neha Bansal, Amit Chaudhary, and Sumeet Kapahi will offload around 31.8 million shares total.

Financials and Growth Trajectory

• FY25 Revenue: ₹6,652.5 crore, up ~22–23% YoY from ₹5,427 crore in FY24.

• Profitability: Lenskart turned profitable in FY25 with a net profit of ₹297.3 crore, versus a ₹10.2 crore loss in FY24

•  Gross margin stands at ~69–70%; EBITDA margins reported in range of 18–22%

• Cash position: Net cash of ~₹1,700 crore as of H1 FY25 

Revenue contributions are split roughly 60% from India and 40% from international markets such as Southeast Asia, the Middle East, and others.

Use of IPO Funds

According to DRHP disclosures:

• ₹272 crore to open 620 new company‑owned company‑operated (CoCo) stores by FY29.

• ₹591 crore for lease and licence payments relating to existing CoCo outlets.

• ₹213 crore for technology and cloud infrastructure (notably AI‑led fulfilment and robotic lens labs).

• ₹320 crore earmarked for brand marketing and business promotion.

• Remaining funds allocated to general corporate purposes, including inorganic expansion Storyboard18+11Moneycontrol+11ETRetail.com+11.

In FY25, Lenskart opened 366 CoCo stores, with plans for ~50 in FY26 and ~190 each in FY27 to FY29. The company also offers next‑day delivery across ~40 Indian cities and 3‑day delivery across 69 cities ETRetail.com.

IPO Risks and Red Flags

• Academic disclosure: Co‑founder Sumeet Kapahi disclosed in the DRHP that his Bachelor of Commerce (Honours) degree and mark sheets from Delhi University are missing, and alternative certificates were provided for transparency.

• Market volatility: IPO markets in India have seen high activity in 2025 (~US $6.7 billion raised H1), but also liquidity constraints and sensitive listing windows.

• Competitive and operational risks: Economic and operational challenges include maintaining debt covenants (net borrowings ~₹346 crore as of March 2025) and integration of acquisitions or scaling via CoCo store expansion.

• Franchise disputes: Lenskart has faced accusations from franchisees over unfair competition—some legal disputes including a High Court stay on an OEP investigation filed in Karnataka in late 2024/early 2025.

Strategic Significance

The IPO move underscores Lenskart’s ambition to consolidate its leadership in India’s eyewear market and accelerate its omnichannel retail footprint both domestically and internationally. The company’s vertical integration—from manufacturing in its Bhiwadi (Rajasthan) facility to AI/robotics in operations and a network of 2,000+ physical stores—positions it to exploit scale economies and operational efficiency.

With marquee backers like SoftBank, Temasek, ADIA, Premji Invest, KKR and Alpha Wave Ventures, the IPO also serves as a partial exit and value realisation for early investments, while offering retail investors an opportunity to participate in the company’s next phase of growth.

Fair Shareholder Perspective

From an investor standpoint, Lenskart presents a mixed picture:

• Upside potential: Strong growth in physical‑digital retail, improving margins, profitability in FY25, and strategic investments into supply chain and technology.

• Downside risks: Execution on aggressive expansion plans, maintaining debt discipline, handling franchise tensions, and sensitivity to macroeconomic and market sentiment cycles.

Timeline and Outlook

• July 28–29, 2025: Draft DRHP filed; shareholder approval obtained.

• Next few days/weeks: Public filing expected, followed by subscription window likely in Q3/Q4 FY2026.

• Listing: It's expected in late 2025, depending on market conditions. Final issue size and valuation will crystallize closer to the IPO.

Roadmap for Lenskart

Lenskart’s planned IPO marks a defining moment both for the company and for India’s consumer‑tech ecosystem. While it brings opportunity for expansion funding and existing investors, it also places the spotlight on execution capacity and transparency. For investors weighing participation, key considerations will include the final pricing, market sentiment at launch, and Lenskart's ability to scale sustainably.

References

Navbharat Times, Storyboard18, Economic Times, Reuters, Moneycontrol, Mint, Times of India, Fintrackr, ETtech, Livemint—for factual data, DRHP details, valuations, financials, and risk disclosure