Block Deal Executes

Lenskart Solutions shares rose on Monday after a significant block deal saw a 2.6% stake in the eyewear company change hands. As many as 4.5 crore shares, or 2.59% of Lenskart Solutions, were traded in block deals on August 24, according to CNBC-TV18.

The block deal follows a report from CNBC-TV18 on Saturday, August 22, citing sources, that Softbank Vision Fund (SVF) II Lightbulb Cayman was likely to sell up to 2.6% stake in Lenskart Solutions at approximately $300 million, with a floor price of ₹635 per share. The floor price represented a 4% discount to the stock's previous close of ₹661.4.

The official buyers and sellers in the block deal have not yet been identified. Sources added that the selling shareholder would have a 45-day lock-up for any residual stake sale.

Market Reaction

Shares of Lenskart Solutions were up 1.6% at ₹672.25 apiece at 9:16 am on Monday. The stock has gained 20.9% in the past month and 52.9% this year so far. Earlier this month, Lenskart shares crossed the ₹600 mark for the first time.

Ownership and Financials

At the end of the first quarter, promoter entities held an 18% stake in Lenskart, while public shareholding comprised 82%. SVF II Lightbulb Cayman held a 9.86% stake in the company, as per data available on the exchanges.

In the June quarter, Lenskart's profit after tax surged to ₹228.43 crore from ₹61.17 crore in the year-ago period. Revenue increased 43.3% to ₹2,714.18 crore from ₹1,894.46 crore. EBITDA increased 75.1% to ₹588.48 crore from ₹336.08 crore, while margins expanded to 21.7% from 17.7%.

Analysts have been bullish on the stock. Jefferies has maintained a Buy rating on Lenskart and raised its target price to ₹680 from ₹600. Morgan Stanley has an Overweight rating with a target price of ₹666. Goldman Sachs has an Accumulate rating and raised its target price to ₹715.