Lenskart Solutions Limited IPO – Mainboard
Lenskart Solutions Limited is India’s largest eyewear company, having revolutionized the optical retail market through an innovative omnichannel “Phygital” (physical + digital) model. Founded in 2010 by Peyush Bansal, the company has grown from an online-only platform to a vertically integrated retailer with over 2,700 stores and a significant digital presence across Asia. The company designs, manufactures, and retails eyeglasses, sunglasses, and contact lenses leveraging cutting-edge technology and an asset-light, scalable business model.
READ FULL DRHP HERE: | SEBI DRHP LENSKART SOLUTIONS |
IPO Details:
| Parameter | Details |
|---|---|
| IPO Opening Date | 31 October 2025 |
| IPO Closing Date | 4 November 2025 |
| Allotment Date | 5 November 2025 |
| Listing Date | 10 November 2025 (BSE, NSE) |
| Price Band | ₹382 – ₹402 per share |
| Minimum Lot Size | 37 shares (~₹14,874 at upper band) |
| Face Value | ₹2 per share |
| Issue Size | ₹7,278.02 crore (India’s largest retail IPO of 2025) |
| Fresh Issue | ₹2,150 crore (29.5% of issue) |
| Offer for Sale (OFS) | ₹5,128.02 crore (70.5% of issue) |
| Registrar CLICK HERE |
Consolidated Financials (FY23–FY25)
| Metric | FY23 | FY24 | FY25 | Growth CAGR |
|---|---|---|---|---|
| Revenue (₹ Cr) | 3,927.97 | 5,442.48 | 6,652.00 | 30.1% |
| PAT (₹ Cr) | (63.76) | (10.15) | 297.34 | – |
| EBITDA (₹ Cr) | 259.71 | 672.09 | 971.06 | 93.2% |
| EBITDA Margin (%) | 6.6% | 12.4% | 14.6% | +800 bps |
| PAT Margin (%) | (1.6%) | (0.2%) | 4.5% | – |
Financial Metrics Analysis
| Metric | Interpretation |
|---|---|
| Revenue Growth (30.1% CAGR) | Strong market demand and successful expansion driving consistent sales increase |
| EBITDA Margin Expansion (6.6% → 14.6%) | Significant operational leverage and improved cost management as scale increases |
| Profitability Turnaround | Transition from loss-making to profitable operations indicates business model maturity and operational efficiency |
| ROCE Improvement (5.08% → 13.84%) | Better utilization of capital in generating returns, though still below cost of capital for premium valuation |
| Store Payback Period (8 months) | Highly efficient store economics validating the omnichannel expansion strategy |
Why do some investors like this Mainboard IPO?
- Market Leadership: Dominant position with no close competitor in omnichannel eyewear retail
- Technology-First Approach: Proprietary AI/AR capabilities for personalization and operational efficiency
- Vertical Integration: In-house manufacturing ensures quality control, faster time-to-market, and margin expansion
- Scalability: Proven ability to open 50+ stores monthly with consistent profitability
- Capital Efficiency: New stores achieving breakeven in 8 months vs industry average of 18–24 months
- Brand Recognition: Strong customer loyalty with recurring purchase patterns (vision correction is a regular need)
- Omnichannel Advantage: Seamless online-offline integration drives customer retention and AOV
Point of Cautions:
1. Valuation Risk
- Premium Valuations: IPO priced at 200x+ FY25 earnings—among the highest in retail sector
- Limited margin for error if growth slows or profitability disappoints
- Market cap significantly driven by future growth expectations rather than current fundamentals
2. Regulatory & Compliance Risks
- ED (Enforcement Directorate) Scrutiny: Ongoing inquiry under Foreign Exchange Management Act (FEMA) regarding import-export transaction filing delays
- While the company has complied with notices, future regulatory actions remain uncertain
- Promoter Neha Bansal has appeared before ED; any adverse findings could impact reputation and operations
3. Supply Chain & Geographic Concentration Risk
- Heavy China Dependence: 42.2% of total purchases (₹1,06,243 crore in FY25) directly imported from China
- Joint venture Baofeng Framekart in China creates geopolitical and supply disruption risks
- Manufacturing facilities concentrated in Bhiwadi/Gurugram industrial cluster—facility shutdown/disruption could halt production
- Raw material costs represent 25% of total expenses; price fluctuations directly impact margins
4. Global Expansion & Integration Risks
- Owndays Acquisition Impact: ₹29,276 crore acquisition created ₹18,611 crore goodwill—high synergy expectations
- Integration challenges and underperformance of acquired assets could weigh on consolidated profitability
- International operations still nascent; execution risks remain high
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.