Lenskart to file DRHP publicly in July, eyes $1B IPO
What's the story
Lenskart, the leading omnichannel eyewear maker in India, is likely to skip the confidential filing route for its initial public offering (IPO). The company plans to file its draft red herring prospectus (DRHP) publicly by mid-July. This move is different from other new-age companies like Swiggy and Groww that have opted for the confidential filing route.
Filing strategy
What's the confidential filing route?
The confidential route, as offered by the Securities and Exchange Board of India (SEBI), keeps company details under wraps until the last minute. However, Lenskart has decided to go for the normal route where all information in the draft IPO document is made public once filed with SEBI. Lenskart's decision to file its draft IPO papers publicly is backed by its confidence in its market position and operating metrics.
IPO details
Lenskart aims to raise $1 billion from IPO
Lenskart is preparing for a mega $1 billion IPO at a valuation of $10 billion. The company has appointed Kotak, Axis Capital, Citi, Morgan Stanley, and Avendus as bankers to help raise over $1 billion. Earlier, the company was eyeing a valuation of $7-8 billion but now feels confident to go public at a valuation of $10 billion, driven by its market position and growth prospects.
Financial outlook
Losses in recent years
Despite being profitable in the past, Lenskart has been operating at a loss in recent years due to expansion efforts. In FY24, the company posted a loss of ₹10 crore on revenues of ₹5,427 crore. The firm is yet to file its FY25 results but remains optimistic about its future growth trajectory and market position.