Lenskart Solutions, a prominent eyewear retailer, has officially opened its Initial Public Offering (IPO) for subscription starting Friday, October 31. This highly anticipated public offering provides an opportunity for investors to participate in the growth story of one of India's largest omni-channel eyewear players, while the subscription window will remain open until November 4, allowing ample time for retail and institutional investors to place their bids. The company aims for a stock exchange debut, with shares expected to be listed on November 10.
Issue Details and Valuation
The Lenskart IPO is structured as a significant offering, comprising a fresh issue of new shares worth ₹2,150 crore. In addition to the fresh issue, the IPO also includes an Offer For Sale (OFS) of 12. 75 crore equity shares by existing promoters and investors. The price band for the IPO has been set between ₹382 and ₹402 per equity share. At the upper end of this price band, Lenskart is targeting a valuation exceeding ₹69,700 crore, reflecting the company's strong market position and growth prospects. The OFS component will see key promoters such as Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi, along with investors like SVF II Lightbulb (Cayman) Limited, Schroder. Capital Private Equity Asia Mauritius Limited, PI Opportunity Fund-II, MacRitchie Investments Pte Ltd, Kedaara Capital Fund II LLP, and Alpha Wave Ventures LP, offloading a portion of their holdings.
Overwhelming Anchor Investor Response
Lenskart received an exceptional response from anchor investors even before the public subscription opened, while on October 30, a day prior to the IPO's official launch, the company garnered bids totaling approximately ₹68,000 crore from anchor investors. This figure is a testament to the strong institutional confidence in Lenskart's business model and future potential, as it's nearly 10 times the total issue size of ₹7,278 crore and more than 20 times the anchor book size, which was around ₹3,200 crore. According to a circular uploaded on the BSE website, approximately 70 prominent investors participated in the anchor book.
Global and Domestic Institutional Participation
The anchor book saw participation from a diverse group of leading global and domestic institutional investors. Among the notable global institutions were the Government of Singapore, the Monetary Authority of Singapore, T Rowe Price, BlackRock, Fidelity, Nomura, and Goldman Sachs. Foreign Institutional Investors (FIIs) collectively accounted for a substantial portion, approximately 52 percent, of the anchor book. Domestically, major mutual funds such as SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Kotak Mutual Fund, and Aditya Birla Sun Life Mutual Fund also showed strong interest and participated in the offering. The company allocated 8, while 13 crore equity shares to these anchor investors at a price of ₹400 per share, successfully raising a total of ₹3,268 crore.
About Lenskart: India's Eyewear Leader
The capital raised through the Lenskart IPO is earmarked for several strategic initiatives aimed at fueling the company's expansion and strengthening its operational capabilities. A significant portion of the funds will be allocated towards. Capital expenditure for establishing new Company-Operated, Company-Owned (CoCo) stores across India. This includes payments related to lease, rent, and license agreements for these new retail outlets. Also, Lenskart plans to invest in enhancing its technology and cloud infrastructure, which is crucial for its online platform and operational efficiency. Funds will also be directed towards brand marketing and business promotion activities to further solidify its market presence. The company has also indicated that a portion of the proceeds may be used for potential unidentified inorganic acquisitions and for general corporate purposes, providing flexibility for future growth opportunities.
Founded in 2008, Lenskart has grown to become one of India's largest omni-channel eyewear retailers. The company initially launched as an online eyewear platform in 2010, revolutionizing how consumers purchased prescription glasses, sunglasses, and contact lenses. Demonstrating its commitment to an integrated retail strategy, Lenskart opened its first physical store in New Delhi in 2013. Today, it boasts an extensive network of stores across metro, tier-1, and tier-2 cities within India, while beyond its domestic stronghold, Lenskart has also expanded its international operations, establishing a presence in Southeast Asia and the Middle East, further solidifying its position as a global eyewear brand.
Grey Market Premium (GMP) Insights
The Grey Market Premium (GMP) for Lenskart's shares is currently trading at a premium of ₹70 on Friday, according to various grey market tracking websites, while this indicates a positive sentiment among investors regarding the company's listing prospects. Based on this GMP, an estimated profit of approximately ₹2,590. Per lot (consisting of 37 shares) is anticipated for investors. The estimated listing price for Lenskart is projected to be around ₹472 per share (₹402, the upper end of the price band, plus the ₹70 GMP). This suggests a potential listing gain of approximately 17. 4 percent over the upper price band, making the IPO an attractive proposition for investors seeking short-term gains.
