Block deals today: Lenskart, PB Fintech see Rs 6,119 crore worth shares changing hands; stocks react

Two NSE-listed companies namely Lenskart Solutions Ltd and PB Fintech Ltd saw a combined Rs 6,119 crore shares changing hands on Friday at a discount of 1-3 per cent. Data available with the stock exchange showed Lenskart witnessed 11,22,42,914 shares worth Rs 5,313.58 crore changing hands at Rs 473.40 apiece, a 2.94 per cent discount to Thursday's closing price. PB Fintech, on the other hand, saw 48,40,439 shares changing hands in block at Rs 1,664 apiece, worth Rs 805.45 crore.  At 9.21 am, Lenskart shares were trading 2.47 per cent lower at Rs 475.70 on NSE. PB Fintech shares were up 0.23 per cent at Rs 1,688.50.

In the case of Lenskart Solutions, there were already reports that Rs 3,300 crore worth of block deals will take place today, as 104.70 crore initial public offer (IPO) lock-in shares, accounting for 60 per cent of the total outstanding stocks, got expired today.  

As per a report earlier, the eyewear major was expected to see 7.2 crore shares changing hands on stock exchanges in a transaction worth Rs 3,293.60 crore for about Rs 470 per share. Selling shareholders were said to be Birdseye View, TR Capital and ABG Capital. These investors were looking to exit the company, CNBC TV 18 reported sources as saying. Business Today could not independently verify the report.

PB Fintech recently came out with strong set of quarterly results. MOFSL said its volume growth in Q4 was above the company's guidance of 30 per cent, driven by GST exemption-led boost in term and health insurance. Strong momentum in the protection segment, along with operational efficiency on the back of productivity improvement, resulted in robust profitability, it said. "We expect PB Fintech to post a strong CAGR of 28%/73%/40% in revenue/EBITDA/PAT, factoring in a strengthening position in the under-penetrated credit and insurance industries. However, the potential risk of commission caps on take rates remains the key monitorable," it said.

Lenskart is India’s largest vertically integrated, technology-led, omnichannel eyewear platform. Analysts said Lenskart has built strong moats in a difficult-to-scale category through a centralised, highly automated manufacturing facility and logistics network. MOFSL, while initiating coverage on the stock in February this year cited the company's strong backward integration through in-house frame and lens manufacturing, which provides significant cost advantage; and large omnichannel presence through its mobile app and a network of 2,439 retail stores across 435 cities in India and 705 international stores.

The stock is among MOFSL's top non-Nifty picks, the brokerage said in its May strategy note. 

MOFFSL said the company is leveraging technology to ease constraints in scaling up eye tests, store expansions and delivering superior store economics. Besides, it cited house-of-brands architecture spanning mass to premium eyewear, which may help achieve goal of making quality eyewear accessible and affordable.