Shares of Lenskart Solutions Ltd. experienced a 5% decline in Monday's trading session, reacting to news of a substantial block deal by Alpha Wave Ventures LP. The transaction saw trading volumes surge dramatically, reaching 57 times their two-week average as 2.84 crore Lenskart shares changed hands.
Alpha Wave Ventures Offloads Stake
Investment firm Alpha Wave Ventures LP was reportedly aiming to divest up to a 1.6% stake in Lenskart. The block deal was executed at a floor price of Rs 640 per share, which represented a 5.6% discount compared to Friday's closing price. The base offer comprised 1.51 crore shares, equivalent to 0.9% equity, valued at approximately Rs 950 crore. An additional upsize option allowed for the sale of 1.13 crore shares, or 0.7% equity, worth an estimated Rs 724.60 crore.
Analyst Outlook for Lenskart's Performance
Despite the recent stock movement, analysts anticipate a strong performance from Lenskart for the September quarter. Projections suggest a revenue growth exceeding 30% year-on-year. Firms like JM Financial and Elara Securities expect robust growth, driven by both domestic and international markets, alongside improved operating leverage leading to Ebitda margin expansion.
JM Financial forecasts a 30% year-on-year revenue increase, with India contributing 31% growth and international markets 27%. The firm also predicts a 190-basis-point expansion in Ebitda margin. Similarly, Elara Securities projects 34% year-on-year revenue growth, attributing it to volume increases in both key segments and higher realizations.
Kotak Institutional Equities echoed these sentiments, estimating a 34% year-on-year revenue growth for the September quarter, fueled by healthy store additions and strong same-store sales growth. Kotak anticipates a consolidated gross margin of 69.6% and a pre-Ind-AS Ebitda margin of 13.5%, marking a 270 bps year-on-year expansion.