Inside Lenskart’s Upcoming ₹8,000-Crore IPO and Highlighted Risk Factors

New Delhi, October 23: Lenskart is preparing to launch its much-awaited ₹8,000-crore initial public offering (IPO) in early November. The company, led by Peyush Bansal is expected to announce the key details about the IPO next week.

Lenskart One of 2025’s Biggest Public Issues

Lenskart’s IPO will be India’s fourth-biggest IPO of 2025, and will follow top IPOs of Tata Capital, HDB Financial Services, and LG Electronics India. The company will mainly use the proceeds to expand its reach in Tier-2 and Tier-3 markets, while improving its existing business. The IPO will include a mix of fresh issue and an offer for sale (OFS) of up to 13.23 crore shares. The company aims to raise ₹2,150 crore through fresh issue, and the OFS funds will go to selling promoters.

Among the existing shareholders, Peyush Bansal is expected to sell up to 2.05 crore shares. Co-founders Neha Bansal, Amit Chaudhary, and Sumeet Kapahi will also partially sell their shares. Kotak Mahindra Capital, Morgan Stanley, Citi, Avendus, Axis Capital, and Intensive Fiscal Services will manage the IPO.

Lenskart Risks Highlighted in the DRHP

According to the company’s DRHP, potential investors should be aware of several risks. The company relies on importing certain raw materials from China through a joint venture, making it vulnerable to supply chain disruptions. Rising raw material costs are also a concern, as they already make up a significant portion of expenses and could hurt profits if prices increase or supplies are delayed.

Any interruptions at its manufacturing facilities, such as slowdowns or failures, could negatively impact operations and finances. The company’s dependence on its Gurugram manufacturing units creates geographic concentration and logistics risks. There’s also a risk of delays in setting up the planned new Hyderabad facility. Past growth doesn’t guarantee future success, and poor execution in managing expansion could affect profitability.

The company’s international operations expose it to foreign exchange fluctuations, political issues, and varying tax rules. Difficulty in hiring or retaining skilled staff like optometrists could impact its retail business. Technological advancements in eyecare might shift customer preferences away from traditional eyewear.

Lastly, the company’s heavy reliance on Lenskart Gold members for repeat sales poses a risk if customer loyalty decreases.

Outlook Ahead

As a highly recognised consumer-tech brand in India, Lenskart’s upcoming IPO is a major event for the country’s retail and lifestyle sector. The company has strong a large network within India, and is expanding globally. It plans to use the IPO proceeds to expand its position in the eyewear market while managing the potential risks it has disclosed. Both large institutional investors and individual retail investors are keenly waiting for the announcement of the IPO’s price range and subscription dates.

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