Eyewear giant Lenskart Solutions Limited is making waves in the financial markets as its share price touched Rs 510 per share in the grey market, indicating a potential valuation of $10 billion just weeks before its highly anticipated initial public offering (IPO).
A grey market is where shares of a company trade before they are officially listed on the stock exchanges, giving investors an early peek into market sentiment. According to sources familiar with the matter, Lenskart’s latest valuation is nearly double its $5 billion valuation in 2024, highlighting strong investor confidence.
“The company is expected to file its red herring prospectus (RHP) in the week of October 22 and aims to list on the stock exchanges no later than November 12”, a source told Moneycontrol.
Lenskart has not immediately responded to queries regarding its IPO and market valuation.
Strong Financial Performance Driving Investor Confidence
Lenskart’s growth story is backed by impressive financials. The company reported a net profit of Rs 297.3 crore in FY25, a significant turnaround from a loss of Rs 10.2 crore in FY24.
Revenue also surged 23% year-on-year to Rs 6,652.5 crore, with a compound annual growth rate (CAGR) of 33% over the last two years. The company’s gross margins improved by over 500 basis points to around 69%, reflecting improved operating efficiencies and scale.
This financial performance has been a key factor driving confidence among investors ahead of the IPO.
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Expansive Offline and Global Presence
Lenskart’s offline footprint is equally impressive. According to its draft red herring prospectus (DRHP), the company operates 2,723 stores globally, including 2,067 in India and 656 overseas, with expansions fueled by acquisitions in Japan and Europe.
Currently, 60% of Lenskart’s revenue comes from India, while the remaining 40% is generated internationally, showcasing the company’s strategic diversification across geographies. The retailer plans to add 450 new stores in FY26, further strengthening its market presence.
IPO Plans and Fund Utilization
Lenskart received regulatory approvals for its IPO earlier this month. The company plans to raise Rs 2,150 crore in fresh proceeds, along with an Offer for Sale (OFS) of up to 13.2 crore shares by existing investors and promoters, totaling an IPO size of around Rs 8,000 crore.
The fresh proceeds will be deployed strategically:
Rs 272.6 crore for 620 new company-owned stores in India by FY29
Rs 591.4 crore for lease deposits for existing outlets
Rs 213.4 crore for technology and cloud infrastructure, focusing on AI-led fulfillment and robotic lens labs
Rs 320 crore for brand marketing and business promotion
The company’s investment in robotic lens labs, centralized supply chain, and AI-led fulfillment has enabled Next Day Delivery in 40 cities, demonstrating its technological edge.
Backed by Top Global Investors
Founded in 2008, Lenskart is backed by leading global investors including SoftBank, ADIA, Temasek, KKR, Alpha Wave, TPG, and Kedaara Capital, giving it strong financial credibility ahead of its IPO.
With this public market debut, Lenskart joins a growing list of Indian startups such as Meesho, PhysicsWallah, and Groww that are going public amid improving investor sentiment in the country.
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