Lenskart shares in focus ahead of block deal, lock

Lenskart shares in focus ahead of block deal, lock-in of equity worth ₹51,000 crore

Sources told CNBC-TV18 on Thursday evening that some existing investors are planning a clean-out trade in Lenskart, by looking to sell up to 70.2 million shares worth nearly $350 million via a block deal on Friday.

Shares of eyewear manufacturer Lenskart Solutions Ltd. will be in focus on Friday, May 8, for two factors. One, its shareholder lock-in ends today, and on the same day, two existing investors are planning to sell stake through a block deal.

Lenskart Lock-In Ends Today

According to Nuvama Alternative & Quantitative Research, the six-month lock-in for Lenskart ends today, with as many as 1,047.4 million shares becoming eligible to be traded. The number of shares that get freed up amount to 60% of the company's outstanding equity.

Based on Thursday's closing price, the value of the shares that get freed up once the lock-in ends is worth ₹51,573 crore.

It must be noted that the end of the shareholder lock-in does not mean all shares will be sold in the open market. They only become eligible to be traded.

Lenskart Block Deal Likely

The sources also added that there is also an upsize option to the deal, in case of high demand.

Birdseye view holding, Tr Capital Mauritius, ABG Capital, and Kariba Holdings are planning to sell their entire stake, while another seller, Alpha Wave, will have a 90-day lock-in to sell any further stake, as per the sources.

Price for the block deal is said to be fixed at ₹470 apiece, a 3.6% discount to Thursday's close of ₹492.4.

Based on Lenskart's March quarter shareholding, Alpha Wave has close to 7% stake in the company, while Birdseye View Holdings has 1.92%. The names of other sellers do not feature in the shareholding list, as their stake may be less than 1%.