Lenskart shares jump 27% in gray market ahead of IPO
What's the story
Lenskart, India's leading eyewear brand, is gearing up for its much-anticipated initial public offering (IPO). The company will open its IPO for public subscription on Friday. The move comes as investor interest in consumer-tech stocks continues to grow. Investor interest is surging, as the stock fetches a 27% grey market premium (GMP), pointing to a likely blockbuster IPO. The company has set a price band of ₹382-402 per share.
Issue specifics
Issue size and allocation
The total issue size of Lenskart's IPO is estimated to be around ₹7,278 crore. This includes a fresh issue worth ₹2,150 crore and an offer for sale (OFS) of up to 12.75 crore shares by promoters and existing investors. The latter is expected to fetch around ₹5,128 crore at the upper end of the price band. The company will allocate 75% of its offer to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 10% to retail investors.
Market impact
Fourth-largest IPO of the year
Lenskart's IPO will be India's fourth-largest public issue of 2025, after Tata Capital, HDB Financial Services, and LG Electronics. The company has marquee investors such as SoftBank, Temasek, Kedaara Capital, and Alpha Wave Ventures. Billionaire Radhakishan Damani, founder of DMart, recently invested ₹90 crore in a pre-IPO round for Lenskart. Currently, Lenskart shares are trading at a GMP of around ₹108 over the upper price band of ₹402 per share.
Growth strategy
Financial performance and growth trajectory
Founded in 2008 by Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi, Lenskart has evolved from an online eyewear platform to a retail giant with over 2,500 stores across India, the Middle East and Southeast Asia. The company posted a net profit of ₹297 crore in FY25 after a loss of ₹10 crore in FY24. Revenue also jumped to ₹6,625 crore with a 22% year-on-year growth rate.
Fund allocation
Use of fresh issue proceeds and other key details
The fresh issue proceeds from Lenskart's IPO will be used for store expansion, technology upgrades, and brand-building initiatives. The company plans to strengthen its omnichannel presence in India and abroad. Tentative share allotment is likely on November 6 with listing expected on November 10. Eligible employees will get a discount of ₹19 per share on the issue price.