Lenskart IPO: Peyush Bansal-led firm likely to announce price band, dates next week; 10 key risks to know

The Lenskart IPO price band and key dates are expected to be announced early next week, according to market sources. Eyewear retailer is all set to launch its IPO valued at ₹8,000-crore in early November, as per media reports.

This will mark the fourth-largest IPO of 2025, following Tata Capital, HDB Financial Services, and LG Electronics India. The main book-running managers for this offering include Kotak Mahindra Capital, Morgan Stanley, Citi, Avendus, Axis Capital, and Intensive Fiscal Services. According to reports, the firm supported by Temasek and KKR, plans to further develop its presence in Tier-2 and Tier-3 cities while enhancing its omnichannel strategy.

The Lenskart IPO will consist of a mix of new share issuances and an offer for sale of up to 13.23 crore shares. The company intends to generate up to ₹2,150 crore through the new share issuance. Co-founded by Peyush Bansal, the Lenskart IPO will be a fully book-built issue, with Bansal set to sell up to 2.05 crore shares. Co-founders Neha Bansal, Amit Chaudhary, and Sumeet Kapahi will also be selling stakes through the IPO.

Here are some of the key risks listed by the company in its Draft Red-Herring Prospectus (DRHP):

Lenskart IPO - Key Risks

1. The company produces some of its frames domestically while importing certain raw materials from the People’s Republic of China, including through their joint venture with Baofeng Framekart Technology Limited. Any delays, interruptions, or reductions in the supply of these frames or raw materials could negatively impact their business, financial position, operational results, and cash flow.
2. The expenses associated with raw materials constitute a large portion of the company's total expenditures (amounting to ₹16,229.74 million, or 24.52% of overall expenses in the Financial Year 2025), and any delays, interruptions, or changes in the supply of these materials needed for their prescription eyeglasses, or fluctuations in raw material prices could adversely influence their business, operational results, financial condition, and cash flow.
3. Any slowdowns, failures, or shutdowns at their manufacturing sites could negatively affect their business, operational outcomes, financial health, and cash flow.
4. The company's dependence on manufacturing facilities situated in the Gurugram industrial cluster poses concentration risks related to production and logistics, which could adversely impact their business, operational results, financial condition, and cash flow.
5. The company has signed a memorandum of understanding with the Government of Telangana to establish a new manufacturing plant in Hyderabad, Telangana, and may face delays regarding the planning, construction, and operationalization of this facility, which could negatively affect their business, operational results, financial condition, and cash flow.
6. The company's past performance may not necessarily reflect their future growth or financial results, and if they do not effectively manage their growth or execute their growth strategies, it could adversely impact their business, financial health, operational results, and cash flow.
7. Their global operations introduce various risks related to management, legal matters, taxation, politics, economics, and foreign exchange, and failing to address these risks could detrimentally affect their business, operational results, financial condition, and cash flow.
8. If the company is unable to recruit and retain vision care professionals (including optometrists and opticians) for their retail stores, it could negatively impact their business, operational results, financial condition, and cash flow.
9. Advancements in medical technology within the eyecare sector might negatively influence the demand for their eyewear products.
10. The company significantly relies on sales of its eyewear products to Lenskart Gold members in India. Any failure to retain these customers could lead to a decrease in their product sales, adversely affecting their business, operational results, financial condition, and cash flow.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.