Why Has SEBI Cleared Lenskart IPO and What Should Investors Watch?
The Securities and Exchange Board of India (SEBI) has given its nod to the much-awaited initial public offering (IPO) of Lenskart, the eyewear retail major founded by Peyush Bansal. The company is set to raise Rs 2,150 crore through a fresh issue, marking one of the largest consumer-tech IPOs in recent years. Let’s decode what this means for investors and how the numbers stack up.
About Lenskart and Its Business Model
Lenskart has built a strong presence in India’s eyewear market by integrating technology, design, and affordability. Founded in 2010, it has rapidly expanded across metros and Tier-II cities, supported by its omni-channel strategy — combining e-commerce, mobile app, and over 2,000 offline stores. Its key edge lies in vertical integration, controlling design, manufacturing, and distribution under one umbrella.
IPO Structure and Fund Utilization
The IPO will comprise a fresh issue worth Rs 2,150 crore and an Offer for Sale (OFS) of up to 13.2 crore shares by existing investors and founders. The total IPO size is expected to be around Rs 8,000 crore.
According to the draft red herring prospectus (DRHP), proceeds from the fresh issue will be used for expansion and operational enhancement:
| Purpose | Amount (Rs crore) |
|---|---|
| Opening new company-owned, company-operated (CoCo) stores | 272.6 |
| Lease, rent, and license expenses | 591.4 |
| Technology and product innovation | 400.0 |
| Working capital and general corporate purposes | Remaining balance |
Key Shareholders and OFS Details
Major shareholders participating in the OFS include co-founders Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi, alongside institutional investors such as SoftBank’s SVF II, Alpha Wave Ventures, Temasek affiliates, Premji Invest, and Kedaara Capital.
The presence of long-term institutional backers indicates strong investor confidence, though partial exits are common in mature startup IPOs.
Valuation and Peer Comparison
Lenskart’s pre-IPO valuation is expected to be around Rs 45,000–50,000 crore. Analysts estimate that this places it at a premium compared to listed peers like Titan Eye+ (via Titan Company) and smaller optical players such as GKB Opticals. However, its technology-driven supply chain and online reach justify a valuation premium.
On a price-to-sales basis, the company’s ratio might still appear stretched, suggesting investors should monitor subscription demand and retail interest carefully before committing funds.
Grey Market Premium (GMP) and Subscription Outlook
While the IPO’s official date is yet to be announced, early grey market activity suggests mild optimism with an unverified GMP of Rs 40–50 per share. Such early enthusiasm often depends on market conditions and investor liquidity at the time of opening.
Investors are advised to monitor subscription data closely, particularly Qualified Institutional Buyer (QIB) and Non-Institutional Investor (NII) segments before making a final call.
Traders who actively follow the market often check daily Nifty Tip and BankNifty Tip updates to align their strategies with sectoral trends ahead of major IPOs like this.
Risk Factors Investors Should Note
⚠️ High marketing spends and aggressive offline expansion could strain margins in the short term.
💡 Dependence on discretionary spending means sales could be cyclical during economic slowdowns.
✅ The brand’s strong recall and omnichannel footprint remain its key strengths, ensuring long-term scalability.
Investor Takeaway
Lenskart’s IPO signals growing maturity among Indian D2C startups transitioning to public markets. Its solid fundamentals, coupled with investor confidence, make it a strong contender. However, given its premium valuation, investors may prefer to evaluate subscription trends and consider applying on the final day to gauge overall demand. Explore more detailed market insights and trading ideas at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
