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Lenskart shares fell nearly 2% on Friday, 8 May, amid the expiry of the company’s 6-month shareholder lock-in and reports of a large block deal by existing investors. However, Lenskart shares recovered from the day's low and jumped by more than 2%.
According to Nuvama Alternative & Quantitative Research, the six-month shareholder lock-in for Lenskart ends today, making nearly 1,047.4 million shares eligible for trading. These shares account for around 60% of the company’s outstanding equity and are valued at approximately ₹51,573 crore based on Thursday’s closing price.
Nonetheless, experts noted that the end of the lock-in period does not necessarily mean that all eligible shares will be sold immediately in the open market. It simply gives shareholders the option to trade their holdings.
Lenskart shares fell due to the expiry of the company's 6-month shareholder lock-in period, which made a significant number of shares eligible for trading. This coincided with reports of a large block deal by existing investors looking to exit.
The end of the six-month shareholder lock-in period means that approximately 1,047.4 million shares, representing about 60% of the company's outstanding equity, became eligible for trading. However, it does not guarantee an immediate sale of all these shares.
Around 11.22 crore shares of Lenskart, equating to 6.46% of the equity, were traded in a block deal at ₹473.4 per share, with a total transaction value of approximately ₹5,315.6 crore.
Investors including Birdseye View Holding, TR Capital Mauritius, ABG Capital, and Kariba Holdings were reportedly planning to sell their entire stakes, while Alpha Wave was expected to remain subject to a 90-day lock-in for any additional stake sale.
Lenskart shares opened lower but recovered from their day's low, jumping by more than 2%. Analysts noted aggressive activity and potential transfer into stronger hands, with the stock heading towards resistance in the 510–515 zone.
Further, according to a CNBC-TV18 report, around 11.22 crore shares of Lenskart, representing 6.46% equity, changed hands in the block deal window at ₹473.4 per share, taking the total transaction value to approximately ₹5,315.6 crore.
Earlier, a CNBC-TV18 report, citing sources, said that some existing investors are looking to exit through a block deal involving up to 70.2 million shares, valued at nearly $350 million.
The report added that the transaction also includes an upsizing option in the event of strong investor demand.
According to the report, investors, including Birdseye View Holding, TR Capital Mauritius, ABG Capital, and Kariba Holdings, are planning to sell their entire stakes. Meanwhile, Alpha Wave is expected to remain subject to a 90-day lock-in for any additional stake sale.
Lenskart share price today opened at 486.10 apiece on the BSE. The stock touched an intraday high of ₹498.90 per share and an intraday low of ₹473.65 apiece.
According to Anshul Jain, Head of Research at Lakshmishree, Lenskart has swept the previous swing low near 482, accompanied by a block deal and a sharp rise in volumes, indicating aggressive activity and potential transfer into stronger hands. The liquidity sweep below support suggests a possible bear trap, especially as the price quickly stabilised post the move.
“The stock is now heading toward the moving average resistance cluster in the 510–515 zone, which will act as the immediate hurdle for bulls. Price behaviour around this band will determine whether the move evolves into a broader reversal or remains a short-covering bounce. Sustained strength above 515 could trigger further momentum, while rejection may lead to renewed consolidation near recent lows,” said Jain.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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