India’s eyewear giant, helmed by Peyush Bansal, has crossed an important milestone in Lenskart’s IPO Journey. The Securities and Exchange Board of India (SEBI) has approved its Draft Red Herring Prospectus, opening the doors for the company’s long-awaited initial public offering (IPO). With this, the homegrown brand is preparing to step into the spotlight of the stock exchanges, marking one of 2025’s most anticipated listings.
Structure of the Offer
The IPO is designed to include both a fresh issue and an Offer for Sale (OFS).
- Fresh Issue: Lenskart will raise around ₹2,150 crore, which will go directly to the company.
- OFS Component: About 13.2 crore shares will be sold by existing promoters and investors. Early stakeholders such as SoftBank, Temasek, Alpha Wave Ventures, Kedaara Capital, and others are expected to partially offload their holdings. Even Bansal himself, along with co-founders and family members, will participate in the OFS.
Why the Capital Matters
The money from the fresh issue isn’t just about balance sheet strength; it has targeted uses:
- Retail Expansion: More Lenskart stores across India and upgrading current ones.
- Operational Costs: Lease payments, rentals, and related infrastructure spends.
- Tech & Cloud Upgrades: Investing in back-end systems, platforms, and AI-driven personalization.
- Branding & Marketing: Stronger campaigns to reinforce its position in the eyewear and lifestyle segment.
- Acquisitions: Funds have also been earmarked for potential inorganic growth opportunities.
Financial Health Snapshot
Recent numbers show why Lenskart feels confident about going public. In FY25, the company reported a profit of about ₹297 crore, a sharp turnaround from the previous year’s loss. Revenue surged past ₹6,600 crore, reflecting healthy demand growth across channels. Gross margins also improved, supported by economies of scale and operational efficiency.
This financial progress gives Lenskart a solid foundation to pitch its IPO to both institutional and retail investors.
Strategic Moves Before Listing
Ahead of the SEBI nod, Peyush Bansal made headlines by buying back a 2.5% stake — roughly worth ₹222 crore — from existing investors. This boosted his personal and promoter group holding just in time for the IPO. The move not only signals confidence in the business but also reassures investors of the promoter’s commitment.
Interestingly, the DRHP disclosures included an unusual note: co-founder Sumeet Kapahi disclosed that he could not trace his Delhi University graduation documents. While this doesn’t affect operations, it highlights the level of scrutiny companies face when preparing to list.
Valuation and Timeline
Market estimates suggest the total IPO size, including the OFS, could fall in the ₹7,500–8,000 crore bracket, making it one of the largest consumer-tech listings in India this year. Analysts expect Lenskart’s market capitalization to hover around $800 million to $1 billion post listing, depending on final pricing.
The company is reportedly eyeing a November 2025 debut on the bourses, subject to market conditions and final approvals.
Why This IPO Matters
- Consumer-Tech Benchmark: It could re-ignite investor appetite for consumer and retail tech IPOs after a relatively quiet period.
- Growth Capital: The funds will help Lenskart accelerate store openings, invest in supply chain, and scale its digital ecosystem.
- Partial Exits for Early Investors: Institutions like SoftBank will find liquidity, while continuing to stay invested in part.
- Increased Governance: Public markets will test the company’s ability to maintain transparency and consistent financial performance.
Risks to Watch
- Rising Costs: Retail and supply chain expansion could weigh on margins.
- Competition: India’s eyewear market is increasingly competitive, both online and offline.
- Execution Hurdles: Rolling out new stores and maintaining quality at scale require flawless execution.
- Market Sentiment: The IPO’s success will depend on overall investor appetite and valuations in late 2025.
Closing Thoughts
Lenskart’s SEBI approval sets the stage for a significant new chapter in the company’s journey. What began as a disruptive online eyewear startup is now preparing to enter the demanding world of public markets. With profitability achieved, a growing retail presence, and strong brand recall, the company is well-positioned.
However, the real test will come once shares start trading. If Lenskart balances its ambitious expansion plans with sustained profitability, its IPO could not only strengthen its market position but also set a new benchmark for India’s consumer-tech listings.
