Lenskart’s Big Move: SEBI Greenlights ₹2,150 Crore IPO — Here’s What Investors Must Know
Lenskart, India’s leading omnichannel eyewear retailer, is poised to make a strong debut in the public markets. With SEBI’s approval now in hand, the company has cleared a major hurdle in its journey toward going public, targeting a listing likely by November 2025.
This IPO could mark one of the biggest listings from a new-age company in India this year. In this article, we unpack the key details of the proposed Lenskart IPO, assess the growth story, and evaluate risks and opportunities for investors.
Key Details of the Proposed Lenskart IPO
The Securities and Exchange Board of India (SEBI) has cleared Lenskart’s draft red herring prospectus (DRHP) for its IPO.
The IPO will include a fresh issue of equity shares worth ₹2,150 crore.
Alongside the fresh issue, existing investors and promoters plan an Offer for Sale (OFS) of ~13.2 crore shares.
The total IPO size, combining fresh issue plus OFS, is expected to reach ₹7,500–8,000 crore — positioning this among the larger tech-era listings of 2025.
Lenskart aims for a mid-November listing, with merchant bankers such as Kotak Mahindra, Morgan Stanley, Citi, Avendus, and other lead managers onboard.
Use of IPO Proceeds & Strategic Allocation
Lenskart has laid out a thoughtful allocation of the fresh proceeds toward strengthening its core operations and scaling further. Key allocations include:
Brand marketing & promotional spends: ₹320 crore over four years.
Lease, rent & license costs for its company-owned stores: ₹591.4 crore.
Opening new CoCo (company-owned, company-operated) stores: ₹272.6 crore.
Technology & cloud infrastructure investments: ₹213.4 crore.
The remaining portion is earmarked for inorganic acquisitions and general corporate purposes.
This allocation suggests Lenskart is prioritizing both scaling its store footprint and enhancing its digital/tech backbone.
Financials & Recent Growth
Lenskart comes into its IPO window with improved financials and a clearer path to profitability:
In FY25, the company’s revenue from operations rose to ₹6,652 crore, up from ₹5,427 crore in FY24 (a ~22–23% growth).
Importantly, Lenskart turned net profitable in FY25, posting a profit of ₹297.3 crore, compared to a net loss of ₹10.2 crore in FY24.
The company’s EBITDA (excluding other income) also saw healthy expansion, powered by improved operating efficiencies.
According to brokerage Jefferies, Lenskart has demonstrated a strong three-year CAGR in revenues and holds a dominant position in the organized eyewear market in India and Asia.
On the balance sheet, lenders and investors will watch for net debt or cash surplus, as a net cash position is viewed favorably. Jefferies highlighted Lenskart’s net cash status in their note.
Strengths & Investment Merits
1. Market Leadership & Tailwinds in Eyewear
Lenskart is among the largest organized eyewear retailers in India and has already expanded into Southeast Asia, Japan, and the Middle East. The eyewear sector benefits from secular trends: rising screen time, increasing vision correction needs, and growing fashion/aspiration demand.
2. Omnichannel Model & Vertical Integration
By combining a robust offline store network with digital presence, Lenskart offers buyers convenience, trial, and discovery. Its vertical integration (design → manufacturing → distribution → retail) helps optimize margins and control supply chain risks.
3. Turnaround to Profitability
The shift from losses to profit signals operational discipline and perhaps better unit economics. For many high-growth IPOs, the path to sustainable profits is a key differentiator.
4. Strong Backing & Brand Investors
Lenskart counts marquee backers such as SoftBank’s Vision Fund, Temasek, Kedaara, Alpha Wave, and Premji Invest. Their participation in the OFS also provides exit liquidity to early investors.
5. Aggressive Growth Plans
The company is committing significant capital to marketing, store expansion, and tech upgrades, which could drive scale, brand recall, and customer acquisition across India and abroad.
Risks & Challenges to Watch
While the opportunity is substantial, several risks merit investor scrutiny:
1. Execution Risk on Store Expansion
Opening and operating physical stores is cost intensive (leases, staffing, maintenance). If footfall or per-store revenue underperforms, fixed costs can weigh heavily.
2. Marketing Spend Efficiency
₹320 crore over four years toward brand building is significant. The returns on marketing (CAC, LTV) must justify the spending.
3. Competitive Pressure & Pricing Pressure
The eyewear space attracts both online pure-plays and legacy optical chains. Maintaining margins while scaling could be challenging.
4. Governance & Corporate Disclosures
The DRHP discloses a somewhat unusual detail: one of the co-founders, Sumeet Kapahi, has been unable to trace his B.Com (Hons) degree and academic records from the University of Delhi. While this is not necessarily fatal, it reflects the level of transparency that investors would scrutinize.
5. Macroeconomic & Market Sentiment Risks
Given current global volatility, interest rates, inflation, or foreign fund flows can impact IPO valuations and listing performance.
6. Valuation Risk
At a total IPO size of ₹7,500–8,000 crore, investors will demand strong growth visibility to support lofty valuation multiples.
Investor Outlook & Valuation Considerations
Valuation benchmark: Lenskart may seek a valuation in the $800 million to $1 billion+ range (₹6,500–8,000+ crore), aligning it with other unicorn IPOs.
Margin expansion levers: improvement in store-level productivity, higher gross margins via premium products, and scaling tech leverage will be critical.
Longer-term return drivers: international expansion, adoption of premium eyewear/tech eyewear (e.g. AR/VR glasses), and cross-selling (contacts, sunglasses) may unlock further potential.
Listing day performance: As with many marquee IPOs, retail and institutional demand — anchor investors, subscription levels — will influence listing premium or discount.
For investors, Lenskart’s IPO offers a bet on the convergence of tech, retail, and healthcare fashion, with the opportunity for early access to India’s organized eyewear leader. But success will hinge on execution, discipline, and sustained growth momentum.
Team – CreditMoneyFinance.com
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