Get ready for one of 2025’s most anticipated public offerings! Lenskart Solutions Limited has filed its Draft Red Herring Prospectus (DRHP) with SEBI, aiming to raise ₹2,150 crore through its much-awaited IPO. With backing from global investment banking giant Jefferies and heavyweight investors like SoftBank, this eyewear unicorn is set to revolutionize India’s public markets.
The company’s remarkable transformation from loss-making startup to profitable powerhouse has caught the attention of institutional investors and retail participants alike. Lenskart reported a 22.5% year-on-year growth in revenue, rising to ₹6,652 crore in FY25 from ₹5,428 crore in FY24, swinging into profitability with a net profit of ₹297 crore.
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Lenskart IPO Structure & Key Details
The Lenskart IPO combines strategic growth capital with investor exits, making it an attractive proposition for multiple stakeholder categories. The offering consists of ₹2,150 crore in new shares and the sale of up to 132.3 million existing shares by current investors and company founders.
| IPO Component | Details |
|---|---|
| Fresh Issue | ₹2,150 crore |
| Offer for Sale (OFS) | Up to 132.3 million shares |
| Lead Managers | Jefferies, Morgan Stanley, Kotak Mahindra Capital |
| Current Valuation | ~$5 billion (targeting $10 billion post-IPO) |
| Key Selling Shareholders | SoftBank, Temasek, ADIA, founders |
Three Compelling Reasons Jefferies Champions This IPO
1. Proven Profitability Turnaround The company reported a profit of ₹297.3 crore for the financial year ended March 2025, after cutting losses by 84% to ₹10.15 crore in FY24 from ₹63.7 crore in FY23. This dramatic financial transformation demonstrates management’s execution capabilities and market positioning strength.
2. Dominant Omnichannel Market Position Lenskart stands out because it makes and sells its own eyewear, keeps customers coming back through loyalty programs, and has turned itself around from making losses to being profitable and efficient. The company’s integrated manufacturing and retail approach creates significant competitive moats.
3. Massive Growth Runway The proceeds will fund new CoCo store expansions, technology upgrades, marketing initiatives, and potential acquisitions, with Lenskart building a strong online-to-offline (O2O) presence as one of India’s fastest-growing consumer internet companies.
Heavyweight Investor Backing
The IPO features an impressive roster of institutional investors looking to realize gains from their early bets. SoftBank is the primary external investor with a 15.04% stake, while Abu Dhabi Investment Authority (12.45%), PI Opportunities Fund (5.13%) and Temasek (4.86%) are key external shareholders.
This blue-chip investor backing provides credibility and suggests strong institutional confidence in Lenskart’s long-term prospects.
Market Opportunity & Competitive Edge
India’s eyewear market remains significantly underpenetrated compared to global standards, presenting massive growth opportunities. Lenskart’s tech-first approach, combined with its omnichannel strategy, positions it perfectly to capture this expanding market.
The company’s vertically integrated model – from manufacturing to retail – allows for better margins, quality control, and customer experience compared to traditional retailers. For Indian retail sector investors, this represents a unique play on consumer discretionary spending growth.
Financial Performance Highlights
Lenskart’s recent financial performance showcases the strength of its business model:
- Revenue Growth: 22.5% YoY to ₹6,652 crore in FY25
- Profitability: ₹297 crore net profit in FY25 vs losses in previous years
- Market Leadership: Dominant position in India’s organized eyewear market
- Technology Integration: Strong digital-first approach driving customer acquisition
Risk Factors to Consider
While the growth story is compelling, potential investors should note some challenges. Lenskart faces tax disputes (₹19.22 crore in income tax, ₹13.7 crore in GST and Customs as of March 2025) and some pending legal cases, including an FIR filed against its top leaders in October 2024.
However, these appear to be manageable operational issues rather than fundamental business concerns.
Timeline & Market Context
With India’s IPO market showing renewed momentum after a record 2024, Lenskart’s timing appears strategic. India’s IPO market is set for a blockbuster run in 2025-26 with Reliance Jio IPO, Tata Capital IPO, Lenskart IPO, and LG Electronics IPO among the most awaited listings.
For IPO investment strategies in India, Lenskart represents a mature unicorn with proven financials rather than a speculative growth bet.
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Frequently Asked Questions
Q: What makes Lenskart’s IPO different from other recent tech listings in India?
A: Unlike many tech IPOs that are still loss-making, Lenskart has achieved profitability with ₹297 crore net profit in FY25. The company operates an asset-heavy, vertically integrated model with physical manufacturing and retail presence, making it fundamentally different from pure-play digital companies. Its omnichannel approach combines online convenience with offline experience, creating a sustainable competitive advantage in the eyewear market.
Q: Is the ₹2,150 crore fresh issue size justified given Lenskart’s current business scale?
A: Yes, the fresh issue size aligns well with Lenskart’s expansion plans. With revenue of ₹6,652 crore in FY25, the ₹2,150 crore raise represents about 32% of annual revenue, which is reasonable for funding store expansion, technology upgrades, and potential acquisitions. The company’s profitable operations and strong cash generation capabilities support this capital requirement for accelerated growth in India’s underpenetrated eyewear market.
