Lenskart IPO – A Deep Dive into India’s Big Eyewear Listing

By Prashant for PuneriPages.in

The Lenskart IPO marks a significant moment for India’s consumer tech and retail sector. With a price band set at ₹382–402 per share and the issue opening for subscription on October 31, the eyewear leader aims to raise ~₹2,150 crore via fresh issue, alongside a large offer-for-sale component. Backed by major investors including SoftBank, ADIA and Temasek, the company is targeting a valuation close to $8 billion (~₹70,000 crore) on listing.

Company Profile & Business Model

Lenskart Solutions Limited (founded in 2010) began as an online eyewear platform and expanded rapidly into physical retail. By FY25 it operated over 2,067 stores in India and 656 internationally. The firm designs, manufactures and retails eyewear under its omnichannel model, controlling key costs and improving margins. Its FY25 revenue hit ₹6,652.5 crore with profit of ₹297 crore, a welcome return to black after years of losses.

Key IPO Details: Structure, Dates & Pricing

• Subscription dates: Oct 31–Nov 4, 2025.
• Price band: ₹382 to ₹402 per share (face value ₹2).
• Issue size: Fresh issue ~₹2,150 crore + Offer-for-Sale ~12.75 crore shares.
• Allocation: QIB 75%, NII 15%, Retail investors 10%.
• Listing: Expected on both NSE & BSE around early November 2025.

Strategic Use of Funds & Growth Agenda

Lenskart will deploy IPO proceeds into:

• Expansion of Company-Owned Company-Operated (CoCo) stores across India.
• Lease, rent & licence costs for these retail outlets.
• Investing in technology, cloud infrastructure and marketing.
• Potential acquisitions and general corporate purposes.

This shows that while the business is scaling retail footprint, it is equally emphasising tech, brand, and global expansion—vital for staying competitive.

Strengths & Market Opportunity

• The Indian eyewear market is projected to grow at ~13% CAGR from FY25 to FY30, one of the fastest globally.
• Lenskart’s vertical integration and omnichannel model give it cost and margin advantages.
• Market leader in a category with strong tailwinds: rising vision health awareness, insurance coverage, augmented reality try-ons.
• First purely eyewear company in India to tap public listing; regulatory nod from SEBI obtained.

Risks & Considerations for Investors

• High valuation: At the top end of the band, the implied listing valuation approaches ₹70,000 crore (~$8 billion).
• Retail allocation is only 10%, limiting access for smaller investors and potentially high oversubscription risk.
• Execution risk: Expansion of CoCo stores is capital intensive with long gestation; margin pressure remains.
• Competitive landscape: Threats from traditional retailers, online platforms and new entrants remain.
• Global macro: Supply chain, import duties, currency fluctuations could impact manufacturing and margins.

Valuation and Listing Outlook

Given the price band of ₹382–402 and strong investor interest (reflected in grey market premium near ₹50 over band) for Lenskart, listing performance is expected to be closely watched. The company’s improved profitability and growth trajectory give a positive backdrop, but the high expectations mean any listing-day gap may affect sentiment.

What Does This IPO Signal for Retail & Consumer Tech?

Lenskart’s IPO is not just about one company—it reflects broader themes:

• The maturity of Indian D2C + omnichannel brands moving to public markets.
• Growing investor appetite for profitable consumer plays, not just pure growth-loss stories.
• Valuation benchmarks for retail companies being reset.
  This listing could herald more cross-border retail brands and scale-ups entering India’s capital markets.

Should You Apply? Key Considerations

• Investors comfortable with medium to long-term holding (2-5 years) may benefit from the structural growth story.
• Short-term listing gains are possible, but not guaranteed at such valuation.
• Monitor retail investor demand, subscription levels and anchor investor lock-ins.
• Recheck prospectus details: lock-in of promoters, use of funds, margin outlook.

Conclusion

The Lenskart IPO combines a strong business model, fast-growing market and promising financials—making it one of the marquee listings of 2025. While the valuation is ambitious, the growth potential—both in India and overseas—is significant. Careful investors who understand the retail play and hold with patience may find opportunity. For those expecting instant returns, caution is warranted.

Frequently Asked Questions – Lenskart IPO

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Prashant

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