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

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and Quantitative Research.ALSO READ | Lenskart CEO clarifies after grooming policy row, says viral document ‘outdated’

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.

ALSO READ | Lenskart shares get the highest target price so far

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