LENSKART SOLUTIONS LIMITED IPO

India’s largest eyewear retailer raising ₹7,278 cr (₹2,150 cr fresh + ₹5,128 cr OFS). Price: ₹382-402. Lot: 37 shares (₹14,874). Lead: Kotak, Morgan Stanley, Citi, Axis. Competes with Titan Eye+, ClearDekho. Founder exits ₹824 cr.

IPO DETAILED INFORMATION

Issue Details

Parameter	Details
IPO Type	Mainboard
IPO Open Date	31 October 2025 (Friday)
IPO Close Date	4 November 2025 (Tuesday)
Anchor Investor Bidding	30 October 2025 (Thursday)
Allotment Date	6 November 2025 (Thursday) – Expected
Credit to Demat	7 November 2025 (Friday) – Expected
Refund Initiation	7 November 2025 (Friday) – Expected
Listing Date	10 November 2025 (Monday) – Tentative
Price Band	₹382 – ₹402 per share
Face Value	₹2 per share
Lot Size	37 shares
Min Investment (Retail)	₹14,874 (1 lot of 37 shares at upper band)
Max Investment (Retail)	₹2,04,400 (13 lots of 481 shares)
sHNI Investment	₹2,08,236 (14 lots / 518 shares)
bHNI Investment	₹10,11,432 (68 lots / 2,516 shares)
Issue Size	₹7,278.02 crore total
Fresh Issue	₹2,150 crore (29.5%)
Offer for Sale (OFS)	₹5,128.02 crore (70.5%)
Total Shares Offered	1,80,94,527 equity shares (approx)
Listing	BSE & NSE (Mainboard)
Post-Issue Market Cap	₹69,726.83 crore (at upper price band)

Issue Break-up

Category	Allocation
QIB (Qualified Institutional Buyers)	Up to 50% of Net Offer
NII (Non-Institutional Investors)	Not less than 15% of Net Offer
Retail Individual Investors	Not less than 35% of Net Offer (10% retail allocation confirmed)

Selling Shareholders (OFS Contributors – ₹5,128.02 crore)

Promoters:

1. Peyush Bansal (Chairman, MD & CEO) – Selling 2,05,00,000 shares (₹824 crore)
   • Post-IPO stake: 8.78%
   • 2,061% return on investment
2. Neha Bansal
3. Amit Chaudhary (Co-founder)
4. Sumeet Kapahi (Co-founder)

Major Investors:

1. SoftBank (through SVF II Lightbulb (Cayman)) – Partial exit
2. Schroders Capital Private Equity Asia (Mauritius) – Complete exit (~1.9 crore shares)
3. Kedaara Capital
4. Alpha Wave Ventures
5. PI Opportunities Fund
6. MacRitchie Investments
7. Other institutional investors

Objects of the Issue

Fresh Issue Proceeds (₹2,150 crore) will be used for:

1. Expansion of Company-Owned (CoCo) Stores – Opening new retail outlets pan-India
2. Investment in Technology & Cloud Infrastructure – Upgrading platforms, AR/AI capabilities, data analytics
3. Brand Marketing & Advertising – Building brand awareness and customer acquisition
4. Lease Agreements for CoCo Stores – Securing premium retail locations
5. Strategic Acquisitions & Investments – Potential inorganic growth opportunities
6. General Corporate Purposes – Working capital and business operations

OFS Proceeds (₹5,128.02 crore):

• Goes entirely to selling shareholders (promoters and investors)
• Company receives ZERO funds from OFS
• Provides liquidity and partial/complete exit to early backers

Lead Managers & Registrar

Book Running Lead Managers (BRLMs):

• Kotak Mahindra Capital Company Limited
• Morgan Stanley India Company Private Limited
• Avendus Capital Private Limited
• Citigroup Global Markets India Private Limited
• Axis Capital Limited
• Intensive Fiscal Services Private Limited

Registrar:

• MUFG Intime India Private Limited (Link Intime India Private Limited)
• Address: C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli West, Mumbai – 400 083
• Phone: +91-22-4918 6270 / +91-22-4918 6000
• Website: https://in.mpms.mufg.com/Initial_Offer/public-issues.html

Key Promoters & Founders:

• Peyush Bansal – Chairman, Managing Director & CEO
  • Former Microsoft employee
  • Founded Lenskart in 2010 after IIM Bangalore entrepreneurship diploma
  • Also known for Shark Tank India appearances
• Neha Bansal – Co-founder
• Amit Chaudhary – Co-founder
• Sumeet Kapahi – Co-founder (joined later)

Company Contact:

• Registered Office: Plot No. 151, Okhla Industrial Estate Phase III, New Delhi – 110020
• Corporate Office: 20th Floor, Vipul Tech Square, Golf Course Road, Sector 43, Gurugram – 122009, Haryana
• Phone: +91-124-429 3191
• Website: www.lenskart.com

LENSKART SOLUTIONS LIMITED – COMPANY OVERVIEW

Establishment & Background:

• Founded in 2010 by Peyush Bansal, Amit Chaudhary, and Sumeet Kapahi
• Industry: Eyewear Retail & Manufacturing (Omnichannel Model)
• Headquarters: Gurugram, Haryana
• 15+ years of operations revolutionizing India’s eyewear market
• Founder Peyush Bansal (former Microsoft employee) left cushy tech job to create accessible eyewear solutions

Business Model:

• Technology-led omnichannel eyewear company designing, manufacturing, branding, and retailing eyewear products
• Product portfolio: Prescription eyeglasses, sunglasses, contact lenses, and eyewear accessories
• Operates through integrated digital channels (apps, websites) and extensive physical store network
• Vertically integrated “design-to-delivery” model controlling entire value chain
• In-house brands: Vincent Chase (affordable fashion), John Jacobs (premium aspirational), Lenskart Air, OJOS
• Contract manufacturing for global brands
• Services: Home eye checkups, AR-based virtual try-ons, AI-driven frame recommendations, 3D face scanning

Market Position:

• India’s largest seller of prescription eyeglasses by volume in FY 2025 among organized retailers (Redseer Report)
• One of Asia’s two largest organized eyewear retailers by B2C sales volume in FY 2025
• 45% market share in India’s organized eyewear segment
• Served nearly 10 million customers in India during FY 2025
• Sold approximately 23 million eyewear units in FY 2025
• Daily sales volume: 2.3 million units (as of June 2025)
• Apps downloaded 100+ million times cumulatively

Operations:

• 2,723 stores globally (as of March 2025): 2,067 in India, 656 internationally
• India stores: 1,831 company-owned (CoCo), 306 franchises
• International presence: Japan (through Owndays acquisition), Southeast Asia, Middle East (Singapore, UAE, Saudi Arabia, Bahrain, Oman, Philippines, Thailand)
• Manufacturing: Bhiwadi (Rajasthan) – world’s largest automated eyewear facility (75% automated), Gurugram, Singapore, UAE
• Joint venture manufacturing in China (PRC)
• Next-day delivery in 40 Indian cities, 3-day delivery in 69 cities for single-vision prescription eyewear
• Tech team: 532 members
• Design team: 109 members creating 105+ new collections annually
• Centralized supply chain ensuring quality and cost control

Company Strengths

1. Omnichannel Market Leadership & Scale:
   • 45% market share in India’s organized eyewear segment
   • Largest prescription eyeglasses seller in India by volume (FY25)
   • 2,723 stores globally providing extensive physical touchpoints
   • Seamless integration of online discovery and offline purchase/service
   • First-mover advantage in online-to-offline eyewear retail model
2. Vertically Integrated Manufacturing & Supply Chain:
   • World’s largest automated eyewear manufacturing facility in Bhiwadi (75% automated as of June 2025)
   • In-house frame and lens engineering capabilities
   • Robotic techniques delivering glasses accurate to 3 decimal places
   • 60% manufacturing in India vs competitors like Titan Eye+ (40%)
   • Centralized supply chain reducing costs, ensuring quality, enabling fast turnaround
   • Control over entire value chain from design to delivery
3. Technology & Innovation Prowess:
   • Proprietary tech platform with 532-member engineering team
   • AR-based virtual try-on technology
   • AI-driven frame recommendations and inventory planning
   • 3D face scanning for perfect fit
   • Mobile apps with 100+ million cumulative downloads
   • Home eye checkup services
   • Contactless shopping experience
   • Data-driven personalization enhancing customer experience
4. Strong Brand Portfolio & Product Innovation:
   • Multiple in-house brands catering to different segments:
     • Vincent Chase: Affordable fashion eyewear
     • John Jacobs: Premium aspirational segment
     • Lenskart Air: Ultra-light frames
     • OJOS: Stylish collections
   • 105 new eyewear collections launched in FY25
   • Celebrity and brand collaborations
   • Continuous product innovation maintaining market relevance
   • Strong brand recall and consumer trust
5. Impressive Financial Turnaround & Growth:
   • Revenue CAGR: 32.52% (FY23-FY25) growing from ₹3,788 cr to ₹6,652 cr
   • Turned profitable in FY25 with PAT of ₹297 cr (vs loss of ₹10.15 cr in FY24)
   • PAT growth: 3028% (FY24 to FY25)
   • EBITDA margin improved from 6.86% (FY23) to 14.60% (FY25)
   • Debt reduced from ₹917.2 cr (FY23) to ₹345.9 cr (FY25)
   • Demonstrated path to profitability and operational leverage
6. Global Expansion & International Footprint:
   • Operations across 14 countries
   • 656 international stores (24% of total store count)
   • Strategic acquisitions: Owndays (Asia’s largest optical chain in Singapore, Japan, Malaysia)
   • 40% of FY25 revenue from international markets (20.6% according to some reports)
   • Export markets reducing dependence on domestic growth
   • Proven ability to scale globally
7. Marquee Investor Backing:
   • Backed by SoftBank, Abu Dhabi Investment Authority (ADIA), KKR, Kedaara Capital, Alpha Wave Ventures, Schroders Capital
   • Credibility from institutional investors
   • Access to capital for expansion
   • Strategic guidance from experienced investors
   • Radhakishan Damani (DMart founder) among investors
8. Customer-Centric Service Model:
   • “Buy 1 Get 1 Free” Gold Membership creating loyalty
   • Value-based pricing starting from ₹199
   • Free home eye checkups
   • Easy returns and warranties building trust
   • Pick-up-from-store service for online orders
   • Multi-touchpoint customer engagement
9. Industry Tailwinds:
   • India’s eyewear market projected to reach ₹28,000 crore by FY30
   • Growing at 5.26% CAGR (Statista)
   • Rising screen time and digital eye strain
   • Increasing fashion consciousness
   • Shift from unorganized (70% market) to organized retail
   • 400 million strong middle class with rising disposable incomes
   • Low penetration offering significant growth runway

Key Risks & Challenges

1. Extremely High Valuation – 228x P/E:
   • IPO priced at P/E of 228x FY25 earnings (at ₹402 upper band)
   • Paying ₹228 for every ₹1 of current earnings
   • Significantly higher than Titan Company (80x PE) and global eyewear leader EssilorLuxottica (35-40x)
   • Even higher than Warby Parker valuations
   • Future growth heavily priced in leaving no margin for error
   • 56% of FY25 earnings from one-time accounting gains (Owndays acquisition adjustments, mutual fund investments)
   • Core profitability may be overstated
   • Valuation premium difficult to justify on current fundamentals
2. Heavy Dependence on China for Manufacturing & Raw Materials:
   • Significant raw material imports from China
   • Joint venture manufacturing in People’s Republic of China (PRC)
   • Vulnerability to currency fluctuations (INR-CNY)
   • Geopolitical tensions and trade policy changes
   • Supply chain disruption risks
   • Rising costs from China affecting margins
   • Dependency concentration risk
3. Intense Competition from Established & Emerging Players:
   • Titan Eye+ (backed by Tata Group) with strong offline presence and brand trust
   • Global giants: EssilorLuxottica, Warby Parker eyeing India
   • D2C competitors: ClearDekho (ultra-affordable ₹200-600 eyewear targeting Tier 3-4 cities), Specsmakers, Coolwinks, Eye My Eye
   • Unorganized sector (70% market share) offering cheaper alternatives
   • Private labels in modern retail
   • Low switching costs for customers
   • Price-based competition pressuring margins
4. Capital-Intensive Store Expansion Model:
   • Operating 2,067 stores in India with aggressive expansion plans
   • High capex for store setup, inventory, and maintenance
   • Real estate lease commitments creating fixed cost burden
   • Store profitability varies by location
   • Omnichannel model expensive to scale
   • Significant marketing spend needed (₹294 cr in FY23, up 25% YoY)
   • Cash burn during expansion phase
5. Low Repeat Purchase Frequency:
   • Eyewear not an impulse category
   • Customers buy glasses once every 2-3 years typically
   • Sunglasses seasonal and discretionary
   • Limited revenue from existing customer base
   • Need for continuous new customer acquisition
   • Contrast with FMCG or apparel with frequent repeat purchases
   • Customer lifetime value constrained
6. Promoter Exit Signal – Mixed Issue (29.5% Fresh, 70.5% OFS):
   • Total issue size: ₹7,278 crore
   • Fresh issue: Only ₹2,150 crore (29.5%)
   • OFS: ₹5,128 crore (70.5%)
   • Founder Peyush Bansal cashing out ₹824 crore (~$100M USD)
   • Post-IPO Bansal stake reduces to 8.78%
   • Major investors exiting: Schroders Capital (complete exit ~1.9 cr shares), SoftBank, Kedaara, Alpha Wave
   • Large OFS signals insider confidence concerns
   • Limited capital infusion for company growth relative to issue size
7. Regulatory & Compliance Complexities:
   • Operating across 14 countries with varying regulations
   • Import-export compliance burdens
   • Health standards and safety certifications
   • E-commerce regulations evolving
   • Data privacy laws (customer health data)
   • GST litigation ongoing
   • Tax disputes and potential liabilities
   • Cross-border operational challenges
8. Dependence on Key Management:
   • Heavy reliance on founder Peyush Bansal’s vision and execution
   • Loss of key executives could disrupt operations
   • Franchisee management challenges
   • Talent retention in competitive tech/retail landscape
   • Leadership depth concerns
9. Operational Risks – Store Network & Franchisees:
   • Managing 2,723 stores globally requires robust systems
   • Franchisee disputes potential
   • Quality consistency across company-owned and franchise stores
   • Inventory management complexity
   • Supply chain vulnerabilities
   • Store-level profitability variations
10. Technology & Cybersecurity Risks:

• Platform dependent on IT infrastructure
• Cybersecurity threats to customer data (health, payment)
• System downtime affecting sales
• Continuous tech upgrade costs
• AR/AI features need ongoing investment
• Competition from better tech platforms

11. Economic Sensitivity & Discretionary Spending:

• Fashion eyewear highly discretionary
• Economic downturns reduce non-essential spending
• Fuel price volatility affecting consumer budgets
• Competition from necessity spending categories
• Slowdown in urban consumption affecting premium segments

12. Trademark Disputes:

• Past litigation with Titan Company over metatag usage
• Settled but raised questions about competitive practices
• Potential future IP disputes
• Brand reputation risks from legal issues

Financial Performance Overview (₹ in Crore)

Particulars	FY 2023	FY 2024	FY 2025
Revenue (₹ crore)	3788.03	5427.70	6652.52
Profit (₹ crore)	-63.76	-10.16	297.34
Total Assets (₹ crore)	9528.28	9531.02	10471.02

Revenue

• FY 2023: ₹3,788.03 crore
• FY 2024: ₹5,427.70 crore
• FY 2025: ₹6,652.52 crore

Analysis:
Revenue has shown consistent and strong growth over the last three financial years. It rose by 43.3% from FY 2023 to FY 2024 and further increased by 22.5% in FY 2025. This steady rise indicates robust business expansion, better demand, and possibly a wider product or service reach.

Profit

• FY 2023: ₹-63.76 crore (Loss)
• FY 2024: ₹-10.16 crore (Near breakeven)
• FY 2025: ₹297.34 crore (Profit)

Analysis:
The company’s profitability has improved dramatically. After consecutive losses in FY 2023 and FY 2024, it turned profitable in FY 2025 with a sharp turnaround of ₹307.5 crore compared to the previous year. This improvement reflects better cost control, higher operational efficiency, and stronger revenue realization.

Total Assets

• FY 2023: ₹9,528.28 crore
• FY 2024: ₹9,531.02 crore
• FY 2025: ₹10,471.02 crore

Analysis:
Total assets have grown marginally from FY 2023 to FY 2024, followed by a notable rise of around 9.9% in FY 2025. This indicates that the company has made fresh investments or expanded its asset base to support its growing operations.