Lenskart files papers with SEBI for ₹2,150cr IPO
What's the story
Leading eyewear brand Lenskart has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The firm plans to raise ₹2,150 crore via a fresh issue of equity shares. It also includes an offer-for-sale component of up to 13.22 crore shares by existing shareholders like Peyush Bansal and Neha Bansal.
Shareholders
Multiple investors to offload stakes
The offer-for-sale component of Lenskart's IPO will see several prominent shareholders offloading their stakes. These include Amit Chaudhary, Sumeet Kapahi, Schroders Capital Private Equity Asia (Mauritius), SVF II Lightbulb (Cayman), PI Opportunities Fund - II, MacRitchie Investments, Alpha Wave Ventures LP, and Kedaara Capital Fund II LLP. The firm may also consider a pre-IPO placement aggregating up to ₹430 crore before filing its red herring prospectus (RHP).
Fund allocation
Lenskart to use IPO proceeds for these purposes
Lenskart plans to use the net proceeds from its IPO for a variety of strategic initiatives. These include capital expenditure for opening new company-owned stores in India, lease and rent payments for these stores, investment in technology and cloud infrastructure, brand marketing, and business promotion. The funds may also be used for potential unidentified inorganic acquisitions and general corporate purposes.
Business performance
Biggest organized retailer of prescription eyeglasses
Lenskart is India's largest organized retailer of prescription eyeglasses in terms of business-to-consumer (B2C) sales volumes, according to consultancy firm Redseer's report. The company is reportedly eyeing a valuation of more than $8 billion for its IPO. Unlike many other new-age firms that opted for confidential filings, Lenskart's DRHP is available publicly.