Why Lenskart Shares Fell — Understanding Block Deals and IPO Lock-in Expiry
A group of early investors in Lenskart are looking to sell shares worth ₹5,650 crore through block deals as the company's IPO lock-in period ends. The deal involves up to 7 crore shares at a floor price of ₹470 per share a discount of around 3.6% to Thursday's closing price of ₹492.4. Investors likely participating include Birdseye View Holding, TR Capital Mauritius, ABG Capital and Kariba Holdings.
When a company lists on the stock exchange, early investors like VCs and pre-IPO backers are restricted from selling their shares for a fixed period usually 6 months. This is called the lock-in period. Once it ends, these investors are free to exit their positions.
A block deal is a large transaction where a significant number of shares are bought or sold between two parties at an agreed price usually before market hours. It allows big investors to exit without causing panic in the open market.
Deal size → ₹5,650 crore (raised from earlier estimate of ₹3,293 crore)
Floor price → ₹470 per share
Discount to last close → ~3.6%
Shares involved → Up to 7 crore shares
Upsize option available if demand is strong
When the market senses a large block deal is coming, it creates what is called a supply overhang meaning a large chunk of shares is about to hit the market. This worries existing shareholders and triggers selling pressure even before the deal happens. Lenskart stock fell 2.2% on Thursday and was down around 7% over the last five sessions ahead of this deal.