Lenskart or Tata Capital: Which is Going to Be the Next Big IPO in India?

India's Next Big IPO: Lenskart or Tata Capital?

The Indian IPO market is buzzing with anticipation for two major players: Lenskart, the tech-savvy eyewear giant, and Tata Capital, a titan in the financial services sector. Both companies are poised to raise significant capital, but which presents the more compelling investment opportunity?

These are two vastly different companies, appealing to distinct investor profiles. Lenskart, with its Gen Z-friendly approach, offers a glimpse into the future of e-commerce, while Tata Capital, backed by the legacy and trust of the Tata Group, represents a stalwart in the financial world. Let's delve into the details:

Lenskart IPO: Revolutionizing Eyewear

Lenskart Solutions Limited filed its DRHP (Draft Red Herring Prospectus) in late July 2025, aiming to raise approximately ₹8,000 crores. This includes a fresh issue of ₹2,150 crores and an offer for sale (OFS) of 13.22 crore shares.

About Lenskart:

• Founded in 2010, Lenskart has rapidly expanded its online and offline presence, boasting 2,067 stores in India by FY25.
• Massive growth, with nearly 10 crore mobile app downloads and over 10 crore yearly website visitors globally.
• A vertically integrated business model, controlling the entire value chain from design to distribution.
• Impressive FY25 results: a turnaround from a ₹10 crore loss in FY24 to a ₹297 crore profit, and a revenue surge from ₹3,788 crores to ₹6,652 crores.

Lenskart IPO: Use of Funds:

• Expansion: Establishing new company-owned and company-operated (CoCo) stores.
• Technology: Investing in cutting-edge technology, software, and cloud infrastructure.
• Marketing: Fueling brand awareness and business promotion.
• Strategic Acquisitions: Potential future acquisitions to enhance its market position.

Tata Capital IPO: A Financial Services Powerhouse

Tata Capital Limited, an upper-layer NBFC (Non-Banking Financial Company), submitted an updated DRHP in early August 2025, planning to raise over ₹17,000 crores through a fresh issue and OFS. This IPO is expected to launch before September 30, 2025, driven by RBI regulations.

About Tata Capital:

• A subsidiary of Tata Sons, Tata Capital has served over 70 lakh customers since 2007, offering a diverse range of financial products.
• Ranked as India's third-largest diversified NBFC (as of March 31, 2025), with total gross loans exceeding ₹2,26,553 crores.
• Strong growth, with a CAGR (Compound Annual Growth Rate) of 37.3% over the past two years.
• Extensive network: 1,496 branches across India.

Tata Capital IPO: Use of Funds:

The fresh issue proceeds will primarily bolster the company's Tier-I capital base, supporting future lending activities.

Tata Capital Financials:

• Net Profit Growth: Increased from ₹3,150 crores in FY24 to ₹3,665 crores in FY25 (16% growth).
• Net Interest Income Growth: Soared from ₹6,798 crores in FY24 to ₹10,690 crores in FY25 (57% growth).
• Asset Quality: A slight increase in GNPA (Gross Non-Performing Assets) ratio from 1.5% to 1.9% warrants attention.
• ROA (Return on Assets): Decreased to 1.8%, indicating some reduction in profitability efficiency.

Conclusion:

Both Lenskart and Tata Capital present intriguing investment opportunities, but with differing risk profiles. Lenskart embodies the dynamism of the new-age D2C market, while Tata Capital offers the stability of a well-established financial institution. Thorough due diligence is crucial before making any investment decisions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.