Sebi green lights Lenskart's ₹8,876 crore IPO: Co to float 3rd biggest IPO of the year
Digital Desk
Eyewear company Lenskart has received Sebi's approval for its Initial Public Offering (IPO). According to reports, Gurugram-based company Lenskart will now file an updated prospectus (DRHP) in the next few weeks. The company plans to list on the stock exchanges in mid-November.
Lenskart, established in 2008, started as an online business in 2010. It opened its first retail outlet in 2013. The company operates one of the largest eyewear retail networks in India. Peyush Bansal and his friend from Kolkata planned to create a company that could change the habit of Indians not wearing glasses.
They found another co-founder Sumeet Kapahi on LinkedIn. Kapahi had just quit his job at an eyewear company a few months ago. Together, the three founded Value Technology in 2010, which had different e-commerce websites. These included Lenskart, Jewelkart, Bagkart and Watchkart websites. After some time, seeing the potential in the eyewear market, the three decided to focus solely on Lenskart.
Lenskart had filed Draft Red Herring Prospectus (DRHP) or draft papers with market regulator Securities and Exchange Board of India (Sebi) in July for the IPO. If everything goes according to plan, Lenskart's IPO will be the biggest among new-age Indian companies this year.
According to the report, the company will raise $1 billion (approximately ₹8,876 crore) at a valuation of $10 billion (approximately ₹88,764 crore). This will be the third-largest IPO this year, coming after Tata Capital and LG Electronics.
The company's IPO is a combination of fresh issue and OFS, through which more than 13.22 crore shares will be issued. In this IPO, the company will issue new shares worth ₹2,150 crore. Along with this, the company's existing shareholders will also sell some of their stake through Offer-for-Sale (OFS). The company's shareholders include Peyush Bansal, Neha Bansal, Amit Chaudhary and others.
Lenskart will use a major portion of the funds raised from this IPO to strengthen its business. The company will open new stores in India with ₹272 crore. Additionally, ₹591 crore will be used for rent, lease and other expenses of the existing 2,700+ stores.
The funds raised through the issue will also be used by the company for strategic initiatives. The company's strategic initiatives include new company-operated company-owned (CoCo) stores, investments in technology, brand marketing and potential acquisitions. Additionally, this fund will also be used for leasing and renting CoCo stores. The company will also use this fund to build tech infrastructure and increase brand awareness.
Lenskart has performed exceptionally well in fiscal year 2025. The company earned a profit of ₹297 crore this year, compared to a loss of ₹10 crore last year (FY24). The company's revenue also increased by 22% from ₹5,428 crore to ₹6,625 crore.
Lenskart launched 105 new collections in FY25
In fiscal year 2025, Lenskart launched 105 new collections worldwide and sold 2.72 crore eyewear units to 1.241 crore customers. The company recorded over 100 million (10 crore) app downloads and 104.97 million (10.49 crore) annual website visitors in fiscal year 2025, and operated 2,723 stores worldwide.
Last June, Lenskart raised $200 million (approximately ₹1,775 crore) at a valuation of $5 billion. Lenskart dominates the eyewear sector. The company's business is also profitable. Meanwhile, the company is rapidly expanding its business in Thailand as well.
Who are the Book Running Lead Managers?
Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Avendus Capital Private Limited, Citigroup Global Markets India Private Limited, Axis Capital Limited and Intensive Fiscal Services Private Limited have been appointed as book running lead managers for the IPO.