Indian eyewear retailer Lenskart has secured approval from the Securities and Exchange Board of India (SEBI) for its draft red herring prospectus (DRHP), a key regulatory step before launching its initial public offering (IPO).
Under the current proposal, Lenskart plans to raise INR 2,150 crore via a fresh issue of shares. In addition, existing shareholders and promoters will sell up to 13.2 crore shares through an Offer for Sale (OFS).
While some media reports mention a larger IPO size in the range of INR 7,500 to INR 8,000 crore, the INR 2,150 crore pertains specifically to the fresh issue component. The total size depends on how many existing shares are sold and at what valuation.
Lenskart is targeting a November 2025 date for its stock market listing, subject to market conditions and final regulatory formalities.
Use of Funds and Business Strategy
The company has outlined how it plans to utilise the funds from the fresh issue. Key allocations include:
- Expansion of new company-owned (CoCo) stores across India
- Covering lease, rent, and licensing costs for its existing network
- Investment in technology, cloud infrastructure, and brand marketing
- Supporting acquisitions and general corporate objectives
The OFS proceeds will allow early investors and promoters to partially exit or reduce their holdings. Among them, co-founder Peyush Bansal is expected to sell about 2.05 crore shares.
Performance and Market Outlook
Lenskart has shown strong financial improvement in its latest fiscal year. In FY25, the company reported a net profit of INR 297.3 crore, turning around from a loss of about INR 10 crore in FY24. Revenue rose by over 22–23% to around INR 6,652.5 crore.
Lenskart operates in both online and offline channels, with more than 2,000 physical stores and a vertical integration model — designing, manufacturing, distributing, and retailing its eyewear products.
Analysts view Lenskart’s upcoming IPO as a test of investor appetite in consumer tech and retail in India. If successful, the listing could galvanise more startups to enter the public markets.
Challenges and Risks
Despite the promising backdrop, Lenskart must navigate several challenges:
- Market volatility: Fluctuations in investor sentiment can affect the valuation and timing of the IPO.
- Competition: The eyewear and fashion accessory sector is crowded, both online and via local retailers.
- Execution risk: Expanding store networks, managing lease burdens, and scaling operations can strain resources.
- Regulatory & compliance matters: As a public company, stricter disclosure and governance norms will apply.
Final Thoughts
As Lenskart moves closer to its public debut, all eyes will be on how well it balances growth ambitions with execution discipline. A successful IPO could mark a milestone not just for the company, but also for India’s consumer-tech sector.
Nitin Konde
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