Startup Originals Team
India’s leading eyewear retailer, Lenskart, co-founded by entrepreneur Peyush Bansal, has secured approval from the Securities and Exchange Board of India (SEBI) to move ahead with its initial public offering (IPO). This marks a major milestone in the company’s growth journey, with plans for a massive public listing targeted for the coming months.
SEBI Clearance & IPO Structure:
Lenskart’s draft red herring prospectus (DRHP) has been cleared by SEBI, allowing the company to officially file its final prospectus and set the stage for its public market debut.
The IPO will consist of two parts:
- A fresh issue of shares worth ₹2,150 crore, intended to fuel expansion and operations.
- An Offer for Sale (OFS) component where existing shareholders – including founders and institutional investors – will sell up to 13.23 crore shares.
Taken together, the total IPO size is expected to be in the ₹7,500-8,000 crore range, making it one of the year’s biggest offerings by a consumer-tech firm.
Key Players & Shareholders Involved:
Several marquee investors are part of the OFS and equity mix:
- SoftBank, Temasek, Kedaara Capital, Alpha Wave, Premji Invest, and Schroders Capital are among those divesting shares.
- Among the promoters, Peyush Bansal plans to sell over 2 crore shares, while co-founders Neha Bansal, Amit Chaudhary, and Sumeet Kapahi will offload smaller stakes.
The IPO will be managed by a consortium of investment banks, including Kotak Mahindra Capital, Morgan Stanley, Citi, Avendus Capital, and Intensive Fiscal Services.
Financial Turnaround & Growth Metrics:
Lenskart has shown a sharp turnaround in its finances:
- For FY25, it posted a net profit of ₹297 crore, reversing a net loss of ₹10 crore in FY24.
- Its revenue grew 22–23% year-on-year, reaching ₹6,652–6,653 crore in FY25 (from ₹5,428 crore in FY24).
- Margin expansion and operational scale have helped improve overall business health.
Use of IPO Proceeds:
Lenskart has outlined how it plans to deploy the funds from the fresh issue:
- ₹272 crore for opening new company-owned (CoCo) stores across India.
- ₹591 crore toward lease, rental, and other expenses of its existing 2,700 stores.
- The balance will be allocated to technology upgrades, brand marketing, business promotion, and potential acquisitions.
For brand marketing specifically, ₹320 crore is earmarked over a four-year period, with a focused push through digital, media, influencer campaigns, and offline activations.
Timeline & Next Steps:
- Lenskart is expected to file its updated prospectus in the coming weeks following SEBI’s approval.
- The company is targeting a mid-November listing, aiming to launch on India’s stock exchanges.
