Lenskart's gray market valuation hits $10B ahead of IPO
What's the story
Lenskart Solutions Limited, a leading eyewear retailer, is witnessing a massive surge in its gray market share price. The company's shares recently touched ₹510 apiece in the unlisted market, giving it an impressive valuation of $10 billion. This comes just weeks ahead of its planned initial public offering (IPO). In 2024, Lenskart was valued at $5 billion.
IPO details
Lenskart to file RHP in week of October 22
Lenskart is expected to file its red herring prospectus (RHP) in the week of October 22. The company plans to list on Indian stock exchanges by November 12 at the latest. As per reports, Lenskart will likely maintain its current gray market valuation and debut with a valuation of around $8-10 billion.
Growth trajectory
Financial performance shows strong growth trajectory
Lenskart's financial performance has been impressive. The company posted a net profit of ₹297.3 crore in FY25, compared to a loss of ₹10.2 crore in FY24. Its revenue also jumped 23% year-on-year to ₹6,652.5 crore, with a compound annual growth rate (CAGR) of 33% over the past two years. Gross margins improved by over 500 basis points to around 69%, thanks to operational efficiencies and scale.
Market expansion
Global presence with plans for further expansion
Lenskart has a strong global presence with 2,723 stores, including 2,067 in India and 656 abroad. The company plans to open 450 more stores in the current fiscal year (FY26) to expand its footprint. About 60% of Lenskart's revenue comes from India while the rest comes from international markets, highlighting its diversification strategy.
Fund allocation
Upcoming IPO to raise ₹8,000 crore
Lenskart's upcoming IPO will raise ₹2,150 crore in fresh proceeds. The company will also offer up to 13.2 crore shares for sale by existing investors and promoters, making the total IPO size around ₹8,000 crore. Of the fresh proceeds, ₹272.6 crore will be used for setting up 620 new company-owned stores in India by FY29 while ₹591.4 crore has been allocated for lease deposits of existing outlets.