Lenskart Solutions Ltd., India’s leading omnichannel eyewear retailer founded by Peyush Bansal and team in 2010, has officially submitted its Draft Red Herring Prospectus (DRHP) to SEBI to launch a mega IPO. The company aims to raise ₹2,150 crore through fresh equity and expects the overall issue size—incl. secondary sales—to total ₹6,300–8,500 crore (~$750 million–$1 billion). It is targeting a valuation of $8–10 billion (₹70,000–75,000 crore).
What the IPO Entails
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Fresh Issue: ₹2,150 crore worth of new shares.
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Offer-for-Sale (OFS): Existing investors and promoters to sell ~13.2 crore shares, including stakes from SoftBank, Alpha Wave, Kedaara Capital, Peyush and Neha Bansal, Amit Chaudhary, and Sumeet Kapahi.
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Issue Size: ₹6,300–8,500 crore, depending on OFS finalization.
Valuation & Backing
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Lenskart previously raised ₹1,600 crore (~$200 million) in June 2024 from Temasek and Fidelity at a $5 billion valuation. Fidelity adjusted its internal valuation to $6.1 billion by April 2025.
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For the IPO, the valuation leap to $8–10 billion marks almost a 2× premium over private rounds.
Financials & Business Highlights
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FY24 Revenue: ₹5,428 crore (+43%), with net loss narrowing from ₹63.7 crore to ₹10 crore. In FY25, operating income rose to ₹6,652 crore with profitability reported at ₹297 crore.
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Retail Presence: Over 2,500 stores globally—approx. 2,067 in India and 656 overseas.
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Manufacturing Shift: Frame and lens production consolidated to facilities in Bhiwadi (Rajasthan) and Gurugram, phasing out reliance on Japan and Southeast Asia.
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Market Leadership: The DRHP affirms its pan-India and international footprint across India, Southeast Asia, Middle East, East Asia, Australia, and the US.
Strategic Objectives & Use of Funds
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Establish new company-operated CoCo stores across metro & Tier II/III cities.
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Cover lease obligations for existing outlets.
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Enhance technology and cloud infrastructure, and brand marketing.
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Pursue inorganic acquisitions and cover general corporate needs.
Key Risks & Market Commentary
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Valuation Leap: Analysts note that private valuations ($5–6 B) differ starkly from the IPO target ($8–10 B), raising questions over premium pricing expectations vs. financial discipline.
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Profitability Path: Though net losses have narrowed, Lenskart has yet to deliver sustained profit margin improvements—marketing spend remains significant.
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Oversubscription Risk: With many fintech players filing public DRHPs this year (e.g., Groww, Meesho, Pine Labs), investor appetite may be stretched.
Leadership & Adviser Panel
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Founders: Peyush Bansal (CEO), Neha Bansal, Amit Chaudhary, and Sumeet Kapahi.
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Lead Banks: Kotak Mahindra Capital, Axis Capital, Morgan Stanley, Citi, Avendus Capital, and Intensive Fiscal Services.
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Corporate Transition: Company converted to public limited (name changed in May 2025) and rolled out ESOP 2025 plan including ~7.28 lakh options.
Why It Matters
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India’s IPO Wave: Lenskart’s listing adds to a robust year for public offerings—India expected to generate $6.7 billion in IPO proceeds in H1 2025 alone, second only to the U.S.
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Omnichannel Retail Premium: Its deep offline–online integration, coupled with a growing manufacturing footprint, strengthens investor sentiment in the retail tech space.
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India Stack Era Trend: Lenskart benefits from rising digital infrastructure, financial inclusion trends, and consumer wellness-focused retail shifts.
Conclusion
Lenskart’s IPO is shaping up to be one of the most eagerly watched listings of 2025. With a valuation of up to $10 billion, backed by global giants like SoftBank, Temasek, and Fidelity, and a compelling omnichannel model, it represents both opportunity and risk for investors. While fast-tracking its public debut and showcasing profitability progress, the key will be sustaining margins and delivering on growth promises amidst high expectations.
