ADIA Set to Sell Rs 1,944 Crore Stake in Lenskart Following SoftBank’s Exit

The Abu Dhabi Investment Authority (ADIA) plans to reduce its stake in Lenskart, an eyewear retail company, by conducting a block deal valued at up to Rs 1,944 crore (approximately $204 million). This decision follows a recent stake divestment by SoftBank that raised around Rs 2,873 crore. The transaction, set to feature the sale of up to 4 crore shares at a floor price of Rs 486, represents about 2.3% of Lenskart’s outstanding equity. This price indicates a slight discount of 2.8% to Lenskart’s most recent closing price, illustrating a strategic entry point for potential investors. The sale process officially commenced on June 10, with anticipated closure on the morning of June 11 and settlement due by June 12.

Despite the backdrop of recent stake reductions, brokerage firms remain optimistic about Lenskart’s long-term growth trajectory. Elara Capital has initiated coverage with a “Buy” recommendation and a target price of Rs 615, suggesting an approximate potential upside of 22% from the current valuation of Rs 504. Analysts have characterized Lenskart as one of India’s most unique retail enterprises, noting the strength of its integrated business model which encompasses eye testing, manufacturing, distribution, and retailing. This model, coupled with strong store economics—evidenced by revenue productivity averaging Rs 25,000-30,000 per square foot and gross margins nearing 69%—underpins a compelling investment case.

Lenskart is projected to achieve a robust revenue Compound Annual Growth Rate (CAGR) of 25% along with an EBITDA CAGR of 38% between FY26 and FY29. Originally positioned as an online platform, Lenskart has effectively transformed into a comprehensive vision-care entity with a substantial physical retail presence. Notably, the company facilitates approximately 600 eye tests per store monthly and aspires to scale its annual eye testing volume to 100 million, highlighting its commitment to growth and service enhancement. Additionally, Lenskart has broadened its international footprint through strategic acquisitions, contributing to a significant shift where international operations now account for about 42% of total revenue.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)