Lenskart sets up ESOP trust for its employees before IPO

Lenskart, which has been readying for an Initial Public Offering or IPO in the coming fiscal, has set up an ESOP trust for its employees before listing. 

The company has passed a special resolution to set up an ESOP trust for its employees, regulatory filings show. According to Fintrackr’s estimates, the newly set up trust will constitute 3,173,037 equity shares worth in the range of Rs 550-612 crore.  

 According to the filings, the maximum quantum of option per optionee shall not exceed 10% of the total paid-up equity capital during the tenure of the plan.

Lenskart has clarified that ESOP granted under the new plan shall be vested only between two to four years from the date of grant of such options. According to the resolution, an employee will be allowed to vest 40% of ESOP granted after completing two years and 25% after three years. During the fourth year, an employee can vest up to 35% of the ESOP granted.

The company also outlined that upon the occurrence of liquidity or monetization event, an option will be given to employees for selling the shares at a determined price. In case an employee opts for the same, the trust will sell the shares and the amount will be transferred to the employee after deduction of taxes and other charges.

Last year, the SoftBank-backed company had expanded its ESOP pool by Rs 45 crore. The company’s overall ESOP pool was approximately estimated at Rs 216 crore during the expansion.

The omnichannel eyewear retailer company has become a rare unicorn to hit profitability in the last fiscal. The company has managed to improve its financials in the last three years from incurring a loss of Rs 118 crore in FY18 and Rs 31.6 crore in FY19 to Rs 6.32 crore of profits in FY20. It has also doubled its revenue to Rs 963.7 crore in the last fiscal year.

Backed by the likes of SoftBank, Chiratae Ventures, TPG, PremjiInvest and Unilazer Ventures, Lenskart has raised $459.6 million across equity and debt round to date.