Lens retailer Lenskart submits Draft Red Herring Prospectus to SEBI for IPO initiation; Founders Peyush and Neha Bansal plan to offload shares
Lenskart Solutions Ltd, an omnichannel eyewear retailer based in Gurugram, has taken a significant step towards going public. The company has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an Initial Public Offering (IPO).
The proposed IPO comes with ambitious plans to raise approximately Rs 2,150 crore ($250 million). As part of the offering, existing shareholders, including prominent institutional investors, plan to offload up to 13.2 crore shares through an offer for sale (OFS).
Key Stakeholders and Participants
SoftBank, one of the company's largest external shareholders, holds a 15.04% stake in Lenskart and is the largest institutional seller, offering 2.55 crore shares. Other significant institutional investors participating in the secondary sale include SoftBank, Temasek, Schroders Capital, PI Opportunities Fund, Kedaara Capital, and Alpha Wave.
Among the founders, Peyush Bansal, the CEO, holds a 10.28% stake and will sell 2.05 crore shares. Neha Bansal, another co-founder, holds a 7.74% stake and will divest 57.3 lakh shares. Amit Chaudhary, another co-founder, will sell 28.6 lakh shares.
Financial Performance and Growth
Lenskart reported a 22.5% year-on-year revenue growth in FY25, with revenue from operations rising to Rs 6,652 crore from Rs 5,428 crore in FY24. The company's net profit for FY25 stood at Rs 297 crore, marking a sharp turnaround from a loss of Rs 10 crore in the previous year.
Uses of the Fresh Capital
The fresh capital raised through the IPO will primarily be used for expanding Lenskart's company-operated (CoCo) retail footprint across India, upgrading technology infrastructure, investing in brand marketing and cloud systems, covering rental and licensing costs, and for general corporate purposes.
IPO Details and Management
The IPO is being managed by a syndicate of investment banks, including Kotak Mahindra Capital, Citigroup, Avendus Capital, Axis Capital, Morgan Stanley, and Intensive Fiscal Services. Titan Company Ltd announced the founding of Lenskart Solutions Ltd and will represent the company in the IPO participation.
Lenskart converted into a public limited entity in late May 2025. The total issue size is expected to range between $900 million and $1 billion. Notably, Lenskart chose to forgo the confidential filing route offered by SEBI, opting instead for a traditional DRHP approach.
Competitive Advantage
According to market intelligence firm Redseer, Lenskart's average prices for frames and lenses in India during FY25 were 35-40% lower than industry averages, providing a competitive edge.
The Abu Dhabi Investment Authority holds a 12.45% stake in Lenskart, while PI Opportunities Fund holds a 5.13% stake. These figures, along with the participation of key founders and management team members in the OFS, underscore the confidence of these stakeholders in Lenskart's future growth prospects.
As Lenskart moves towards its IPO, it continues to solidify its position as a leading player in the Indian eyewear market. The company's robust financial performance, strategic growth plans, and commitment to offering affordable products position it well for success in the public market. As of March 31, 2025, Lenskart operated 2,067 stores in India and 656 stores in international markets, totaling 2,723 stores globally.
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