7.2 crore shares worth ₹3,293 crore likely to change hands at ₹470 - CNBC TV18

Lenskart Block Deal | 7.2 crore shares worth ₹3,293 crore likely to change hands at ₹470

The block deal price is at a 3.6% discount to the current market price. Separately, it has been noted that the lock-in period for the IPO ends tomorrow, May 8. Shares of Lenskart Solutions Ltd ended at ₹488.00, down by ₹15.15, or 3.01%, on the BSE.

A block deal has been launched in eyewear major Lenskart Solutions Ltd on Thursday (May 7), with 7.2 crore shares likely to change hands in a transaction worth ₹3,293.6 crore at ₹470 per share, according to sources.

The deal is expected to involve exits by Birdseye View Holding, TR Capital Mauritius, ABG Capital and Kariba Holdings. The block deal price is at a 3.6% discount to the current market price. Separately, it has been noted that the lock-in period for the IPO ends tomorrow, May 8.

Approximately 1,047.4 million shares, representing nearly 60% of the company's total equity, will become eligible for trading on Friday, May 8, according to Nuvama Alternative and Quantitative Research.

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Importantly, the expiry of the lock-in does not necessarily translate into immediate selling, but only makes these shares eligible for trading.

Brokerage firm HSBC had initiated coverage on the stock in March with a 'hold' rating and a target price of ₹513.

The brokerage had said Lenskart's backward-integrated model and direct-to-consumer approach as key strengths, creating a strong competitive moat in the consumer segment. It also sees sustained growth driven by expansion in the total addressable market and market share gains.

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HSBC expects Lenskart's revenue and EBITDA to grow at a CAGR of 23% and 49%, respectively, over FY25-FY28, with improving margins across both domestic and international operations. However, it flagged that elevated valuations relative to peers may cap near-term upside.

According to Bloomberg data, 16 analysts track the stock, of which 12 have a 'buy' rating, three recommend 'hold', and one has a 'sell' call.

Shares of Lenskart Solutions Ltd ended at ₹488, down by ₹15.15, or 3.01%, on the BSE today, May 7.

ALSO READ | Lenskart posts 28% profit jump in Q3 as margins improve, completes multiple stake acquisitions

(Edited by : Shoma Bhattacharjee )