Alpha Wave Ventures Reduces Stake in Lenskart by 2.5% Amid Market Activity
Early Lenskart investor Alpha Wave trims stake by 2.5% in open market
The Economic Times
Image: The Economic Times
Alpha Wave Ventures II LP has reduced its stake in Lenskart, India's leading omnichannel eyewear retailer, by 2.46%, selling 4.3 crore shares in an open market transaction. Their total holding now stands at 4.67%, reflecting a strategic move as the company continues to expand in a growing market.
- 01Alpha Wave Ventures II LP sold 4.3 crore shares, reducing its stake by 2.46%.
- 02Post-sale, Alpha Wave's total holding in Lenskart decreased to 4.67%.
- 03Lenskart is projected to achieve a 25% CAGR in revenue from FY25-28.
- 04Motilal Oswal initiated coverage on Lenskart with a Buy rating and a target price of ₹600.
- 05Lenskart's growth is supported by strong market fundamentals and limited competition.
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Alpha Wave Ventures II LP, an early investor in Lenskart, has sold 4.3 crore shares, representing a 2.46% stake reduction in the company. This transaction occurred after crossing the 2% disclosure threshold on May 8. Prior to the sale, Alpha Wave and its affiliates held 12.37 crore shares or 7.13% of Lenskart, which has now decreased to 4.67%. The direct holding of Alpha Wave Ventures II has dropped from 3.7% to 1.24%, while its affiliate retains 3.43%. Lenskart, recognized as India's largest omnichannel eyewear platform, operates in a market with only 35% penetration among the population. Analysts from Motilal Oswal project a 25% compound annual growth rate (CAGR) in revenue for Lenskart from FY25 to FY28, driven by volume growth and margin improvements. The brokerage has set a target price of ₹600 based on a discounted cash flow model, emphasizing Lenskart's strong growth potential and competitive advantages in the eyewear market.
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Lenskart's continued growth and market presence may lead to increased accessibility and affordability of eyewear for consumers in India.
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