Lenskart shares slip in early deals after lock-in expires, more details

Shares of Lenskart Solutions fell nearly 2.5% in early deals after as many as 40.7 million shares or 2% of the company's outstanding equity became available for trade after the lock-in ended on Monday. According to Nuvama Alternative & Quantitative Research, the value of these shares, based on Friday’s closing price, stands at Rs 1,701 crore. However, it must be noted that the end of the shareholder lock-in period does not mean all the shares will be sold in the open market, but they only become eligible to be traded. The unlocking of shares may affect market liquidity, but does not necessarily imply an immediate increase in active supply.

Lenskart Solutions shares slipped 2.48% to Rs 406.05 in early deals on Monday. Market cap of the firm fell to Rs 70,574 crore. 

The company operates in the eyewear retail segment, with main competitors including Titan Eyeplus and GKB Opticals. The lock-in expiry is a regulatory milestone but does not require further approvals. Analysts are observing potential effects on stock performance as these shares become eligible for trade, especially in light of the company’s projection for improved financials and expansion.

 Lenskart Solutions, in its first quarterly result since listing, reported a 21% rise in revenue year-on-year, alongside a 45% increase in Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA). The company’s India business grew by 13%, while international operations posted growth of 33% compared to the previous year. Last Friday, shares of Lenskart Solutions ended 3.1% higher at ₹418.05, maintaining a 4% premium over its IPO price of Rs 402 per share. The company expects further improvement in revenue and EBITDA for the third quarter and aims to add over 450 net stores across India.