Lenskart Solutions Limited saw a large block deal execute on May 8 as a group of existing investors offloaded 11.22 crore shares, representing 6.46% of the company’s total equity, at ₹473.40 per share, aggregating to approximately ₹5,315.6 crore. The transaction came on the same day that the six-month IPO lock-in period expired for the eyewear company, freeing up as many as 104.74 crore shares — equivalent to 60% of total outstanding equity — for open market trading.
The stock reacted negatively, falling 1.99% to ₹478.30 on BSE during early trade, with the intraday low touching ₹473.65, close to the block deal execution price.
Who sold shares in the Lenskart block deal?
The sellers in the block deal included Birdseye View Holdings, TR Capital Mauritius, ABG Capital, and Kariba Holdings, all of whom were looking to execute clean-out trades by selling their entire remaining stakes. Alpha Wave, another seller in the transaction, will be subject to a 90-day lock-in on any further stake disposal.
The deal size had been revised upward significantly from initial estimates. Earlier reports had pegged the transaction at around ₹3,293.6 crore for approximately 7.2 crore shares, but the final block deal nearly doubled that figure to ₹5,315.6 crore as the transaction was upsized.
What is the significance of the IPO lock-in expiry?
The six-month lock-in for Lenskart’s IPO shares ended on May 8, with 1,047.4 million shares becoming eligible to be traded — accounting for 60% of the company’s outstanding equity. Based on Thursday’s closing price of ₹492.40, the value of shares that became eligible for trading upon lock-in expiry was approximately ₹51,573 crore.
Lenskart was the dominant name in a broader week of lock-in expirations, accounting for nearly 85% of the ₹64,000 crore in total lock-in shares freeing up across six companies between May 4 and May 8. The concentration of supply on a single session created meaningful overhang risk, which the market priced in through two consecutive days of declines — the stock had already dropped 2.2% on Thursday ahead of the event.
How does the block deal price compare to the IPO issue price?
Lenskart shares are currently trading approximately 29% above the IPO issue price of ₹402, meaning sellers executing the block deal at ₹473.40 are still booking a gain relative to their cost basis if acquired at or near listing. The floor price of ₹470 per share represented a discount of approximately 3.6% to Thursday’s closing price of ₹492.40.
The market capitalisation of Lenskart stands at approximately ₹82,800 crore, with the stock trading at a trailing P/E of 160.31. Lenskart is India’s largest vertically integrated, technology-led, omnichannel eyewear platform, and is among Motilal Oswal Financial Services’ top non-Nifty stock picks for the current period, suggesting institutional appetite for the stock remains intact even as early investors exit.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult a registered financial advisor before making any investment decisions. Business Upturn does not hold any position in the securities mentioned.