In the list of upcoming IPOs, the Lenskart issue is another much-anticipated offer. From Peyush Bansal’s pitch on Shark Tank to becoming one of the most popular retail eyewear provider, its come a long way. The company co-founded by Peyush Bansal had filed its DRHP with SEBI in late July. Though the IPO dates haven’t been announced yet, it plans to raise Rs 2,200 crore via the issue. Leading brokerage house, Jefferies sees growing opportunities for the organised retail eyewear segment.
According to the international brokerage house, the Indian eyewear market is on track for double-digit growth over the next five years, and India is the key market for Lenskart, accounting for 60% of revenues and 75% of stores. They believe under-penetration offers long-term growth opportunity.
Lenskart IPO details: Issue size
Lenskart intends to raise Rs 2,200 crore via a combination of fresh issue and offer for sale comprising of 132 million shares. Some of its marquee current shareholders include Softbank, ADIA and Alpha Wave Ventures.
Lenskart IPO objective
The primary objective of the IPO is to use the proceeds from the fresh share issuance for capex towards setting up of CoCo stores and on leased stores. Some amount will also be used for branding & marketing initiatives.
Jefferies On Lenskart IPO: Business dynamics
Lenskart is an omnichannel retailer with a strong presence through stores, its own website and mobile app. With 2,067 stores, Jefferies pointed out that the company is the largest organised eyewear retailer in India.
Tracking the growth for the eyewear retailer, Jefferies detailed out that the company is “growing in low teens. International business forms 40% of revenues but enjoys better margins.”
They further added that “Lenskart is vertically integrated with strong back-end facilities in India, Singapore, Dubai & JV in China. The company turned profitable in FY25.”
Jefferies On Lenskart IPO: India opportunity
Jefferies pointed out that the Indian eyewear market is “valued at Rs Rs 78,800 crore ($9 bn) in FY25 and is expected to grow at a 13% annuallised rate over the next five years.” They believe that it will be mainly driven by the shift from unorganised to organised retail (23%).
Prescription eyeglasses are the largest segment by volume as well as value, but penetration remains low at 35%. According to Jefferies, “rising refractive errors and expanding insurance coverage are key growth drivers,” and opportunities for Lenskart to optimise on.
Jefferies On Lenskart IPO: Global opportunities
Lenskart is present in over 10 countries across Southeast Asia, Middle East and Europe. The international business accounted for 40% of revenue in FY25 despite havingonly 25% share of the total stores.
As per Jefferies’ calculation, the eyewear market in its international geographies was $17 billion in FY25, roughly twice that of India and is expected to grow at 3-7% CAGR across different countries.”
As a result, Jefferies sees that also as an important growth driver for Lenskart going forward.
Lenskart IPO: Financials
Lenskart’s revenue grew at 33% CAGR over the last three years. The FY25 revenue is at Rs 6,700 crore and the consolidated gross margin has come in at 68%.
The international margin is significantly higher at 74%. The company turned profitable in FY25, and the balance sheet has Rs 1,500 crore in net cash.