- The first wave of startup IPOs leaned on Sebi’s 2021 move to sideline the “promoter” concept, reflecting a world of fragmented, venture-backed ownership
- That experiment faltered, as cases like Paytm exposed the risks of founders avoiding accountability
- From 2024 onwards, Sebi reversed course—loosening rules and sweetening incentives, from Esop retention to easier reclassification
- The result is a new equilibrium: founders are paying to re-enter as promoters, and investors are recalibrating their bargains
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In July, Lenskart’s Peyush Bansal did something that would make even the most seasoned investors sit up and take notice.
The founder of India’s most recognisable eyewear brand spent Rs 222 crore to buy more than 40 million shares from marquee backers, including Softbank, Temasek Holdings, and Kedaara Capital. And he paid just Rs 52 a share—implying a valuation of barely $1 billion, a tenth of what Lenskart was valued at in its last private round.
Now, as Lenskart
But this wasn’t just about being opportunistic. That extra 3.3 percentage points pushed Bansal over the 10% threshold that mandatorily makes him a “promoter” under India’s public-listing rules. Few founders in India’s unicorn club have been able to claw back meaningful equity from their investors; fewer still at a fraction of fair value.
He’s not alone. In December, Gaurav Kushwaha of Bluestone
Promoter mechanics // Gaurav Kushwaha and another co-founder together made up Bluestone’s promoter group, which Sebi rules require to hold at least 20%. At Lenskart, too, Peyush Bansal was joined by four others
Different costs, different timing, same destination: promoter status.
And that destination is suddenly crowded. In 2025, about a dozen new-age tech companies filed their IPO prospectuses.
Credits
Written by Arundhati Ramanathan
Edited by Sumit Chakraborty
Lede illustration by Sakshi Modi
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