SoftBank Group, through its affiliate SVF II Lightbulb (Cayman) Ltd, divested a 3.25 per cent stake in eyewear retailer Lenskart Solutions on Wednesday for Rs 2,873 crore. The transaction, executed through an open market deal on the National Stock Exchange (NSE), involved the sale of 56.5 million shares at an average price of Rs 508.55 each.
Context of the Transaction
This divestment marks a significant adjustment in SoftBank’s portfolio regarding its investment in India’s leading omnichannel eyewear brand. Following the sale, the Japanese technology investor’s shareholding in Lenskart has decreased from 13.13 per cent to 9.88 per cent.
The move comes at a time when Lenskart is navigating a complex financial landscape characterized by rapid operational expansion alongside fluctuating profitability metrics. The company recently reported a 7.5 per cent year-on-year decline in consolidated profit after tax (PAT) for the March quarter, which fell to Rs 203.6 crore from Rs 220.1 crore in the corresponding period of the previous year.
Market Participation and Financial Performance
The block deal attracted a wide array of institutional interest, signaling continued confidence in Lenskart’s long-term market position. Buyers included major domestic and foreign institutions, such as WhiteOak Capital Mutual Fund, Mirae Asset MF, Kotak MF, Canara Robeco MF, ICICI Prudential MF, HDFC Life Insurance, Goldman Sachs, and the International Monetary Fund.
Despite the high volume of shares changing hands, the market reaction remained relatively measured. Shares of Lenskart Solutions saw a minor correction, slipping 1.58 per cent to close at Rs 515.90 on the NSE following the announcement of the deal.
While profitability saw a slight dip in the March quarter, Lenskart’s top-line growth remains robust. The company reported a 45.62 per cent surge in revenue from operations, climbing to approximately Rs 2,516 crore compared to Rs 1,728 crore in the year-ago period. Analysts suggest the decline in PAT is primarily attributed to heightened expenditures related to inventory management and rising component costs, rather than a slowdown in consumer demand.
Implications for the Eyewear Sector
For Lenskart, the successful absorption of such a large volume of shares by reputable institutional investors serves as a validation of its business model. As the company continues to scale its physical and digital footprint, the ability to maintain revenue growth despite inflationary pressures on inventory will be critical.
Investors and industry stakeholders will be closely watching Lenskart’s upcoming quarterly results to determine if the company can optimize its cost structure and return to profit growth. The shift in SoftBank’s holdings may also signal a broader trend of early-stage investors seeking liquidity in unicorn-status companies as they look to rebalance their portfolios in the evolving Indian startup ecosystem.
