Abhishek Sinha
Eyewear retailer Lenskart, led by Peyush Bansal, is gearing up to announce the price band and key dates for its much-awaited ₹8,000-crore IPO early next week, according to market sources. The public issue, expected to hit the market in early November, is set to be India’s fourth-largest IPO of 2025, following Tata Capital, HDB Financial Services, and LG Electronics India.
The IPO will be managed by a consortium of leading investment banks including Kotak Mahindra Capital, Morgan Stanley, Citi, Avendus, Axis Capital, and Intensive Fiscal Services.
The company, backed by Temasek and KKR, plans to use the proceeds to expand its retail and digital footprint in Tier-2 and Tier-3 cities, while deepening its omnichannel strategy across India and global markets.
IPO Structure
The Lenskart IPO will include a fresh issue and an offer for sale (OFS) of up to 13.23 crore shares. The company plans to raise around ₹2,150 crore through the fresh issue component.
Promoter Peyush Bansal will offload up to 2.05 crore shares, while co-founders Neha Bansal, Amit Chaudhary, and Sumeet Kapahi will also dilute part of their holdings.
Reports suggest that post-listing, the IPO could make Peyush Bansal a billionaire entrepreneur, further cementing his status as one of India’s most successful new-age founders.
Top 10 Key Risks from Lenskart’s DRHP
According to its Draft Red Herring Prospectus (DRHP), Lenskart has highlighted several potential business and operational challenges that investors should note before the IPO:
- Dependence on China for raw materials:
Lenskart imports certain key raw materials and frames from China via its joint venture with Baofeng Framekart Technology Limited. Any disruption or delay in supply could affect production and profitability. - High material costs:
Raw material expenses make up nearly 24.5% of total operating costs (₹16,229.74 million in FY2025). Price volatility could hit margins and cash flow. - Operational risk from manufacturing sites:
Any slowdown or shutdown at its existing facilities could impact business continuity and production capacity. - Production concentration in Gurugram:
The company’s reliance on its Gurugram industrial cluster poses logistical and operational concentration risks. - New Hyderabad facility challenges:
Lenskart has signed an MoU with the Government of Telangana for a new manufacturing plant in Hyderabad. Any delay in planning or execution could affect growth targets. - Uncertain growth projections:
The company cautions that past performance may not guarantee future results if it fails to execute its expansion plans effectively. - Global exposure risks:
Its international operations face risks linked to regulatory, taxation, political, and foreign exchange fluctuations. - Dependence on skilled vision-care professionals:
The company’s ability to recruit and retain optometrists and opticians is crucial for its retail operations. - Technological disruptions in eyecare:
Advances in vision correction technology (like LASIK or smart lenses) could reduce demand for eyewear products. - Reliance on Lenskart Gold members:
A significant share of domestic sales comes from Lenskart Gold members. Losing these loyal customers could hurt revenue and profitability.
Market Outlook
Analysts believe that Lenskart’s strong brand recall, hybrid retail model, and AI-driven lens fitting technology give it a solid foundation for future growth. However, the high competition in the eyewear segment and dependence on imported inputs remain key challenges.
With investors awaiting finer IPO details next week, all eyes will be on how the market values one of India’s most visible D2C success stories.
