Lenskart's ₹7,278cr IPO now open: Should you bid?
What's the story
Lenskart, a leading eyewear brand in India, has launched its initial public offering (IPO) today. The company is looking to raise up to ₹7,278 crore through the IPO at a price band of ₹382-₹402 per share. The issue will close on November 4. Investors can apply for the shares in multiples of 37 shares each.
Offer details
IPO includes fresh issue of ₹2,150 crore
The ₹7,278 crore public issue consists of a fresh issue of ₹2,150 crore and an offer-for-sale (OFS) of 12.75 crore equity shares. Promoters Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi will sell their shares under the OFS. Investors SVF II Lightbulb (Cayman) Ltd., Schroders Capital Private Equity Asia Mauritius Ltd., PI Opportunities Fund II, Macritchie Investments Pte. Ltd., Kedaara Capital Fund II LLP and Alpha Wave Ventures LP will also offload their shares through this offer.
Fund allocation
Retail investors can bid for 10% of the offer
The IPO has reserved up to 75% for qualified institutional buyers (QIBs), around 10% for retail investors, and about 15% for non-institutional investors (NIIs). Lenskart plans to use the IPO proceeds for various strategic initiatives such as capital expenditure on new company-operated stores in India, payments related to leases/rents/license agreements of these stores, investments in technology/cloud infrastructure, brand marketing/business promotion activities.
Investor interest
SBI Mutual Fund invests ₹100 crore in Lenskart
Before the IPO, SBI Mutual Fund invested ₹100 crore in Lenskart at an enterprise valuation of around $7.7 billion (around ₹70,000 crore). The transaction was executed through SBI Mutual Fund's Alternative Investment Funds - SBI Optimal Equity Fund and SBI Emergent Fund - at a share transfer price of ₹402 per share. Founded in 2008 as an online eyewear platform, Lenskart has grown into one of India's leading consumer eyewear brands with a presence across the country.
Business expansion
Financial performance and store expansion
Lenskart has witnessed a 30% annual revenue growth and over 90% EBITDA growth in the last three years. For FY25, it reported revenue of ₹6,652 crore and profit of ₹297 crore (including a one-time gain). The company now has roughly 2,700 stores globally - around 2,067 in India and 656 in overseas markets.