Lenskart IPO: A New Opportunity for Indian Investors
Lenskart Solutions, the leading eyewear products maker, is all set to open its maiden public issue on October 31. The Softbank-backed company aims to raise Rs 2,150 crore via fresh shares, while promoters and investors will be offloading 12.75 crore equity shares via offer-for-sale. In this article, we will delve into the details of the Lenskart IPO and explore what it means for Indian investors.
IPO Structure: A Closer Look
The Lenskart IPO comprises a fresh issue of equity shares aggregating up to Rs 2,150 crore and an offer-for-sale of up to 12.75 crore shares by existing shareholders, including Softbank Vision Fund, Kedaara Capital, TR Capital, and Chiratae Ventures. This IPO investment is expected to generate significant interest among Indian investors.
Use of Proceeds: Expanding Operations and Enhancing Infrastructure
According to the Red Herring Prospectus (RHP), Lenskart will deploy the fresh issue proceeds mainly for lease and rent payments for company-owned, company-operated (CoCo) stores in India. The company has allocated as much as Rs 591 crore for the management and sustenance of these CoCo stores. Additionally, around Rs 320 crore will be used for marketing and business promotion, while Rs 276 crore will be used as capital expenditure to set up new CoCo stores in India.
Financial Snapshot: A Turnaround Story
Lenskart reported a significant turnaround, posting a restated profit for the year of Rs 297 crore for the financial year ended March 31, 2025. This compares to a restated loss of Rs 10.1 crore in fiscal year 2024 and a loss of Rs 6.3 crore in fiscal year 2023. Revenue from operations grew to Rs 6,652 crore in fiscal 2025, up from Rs 5,428 crore in the previous year. This financial performance is expected to boost investor confidence in the Lenskart IPO.
Promoter and Investor Shareholding: A Look at the Stakeholders
Among the selling shareholders, co-founder Peyush Bansal will sell over 2 crore shares, while other co-founders Amit Chaudhary and Sumeet Kapahi will sell 28.7 lakh shares each. SoftBank affiliate SVF II Lightbulb (Cayman) Ltd. will sell 2.6 crore shares, while Kedaara Capital and Alpha Wave Ventures will also offload part of their stakes. This shareholding pattern is expected to have a significant impact on the Lenskart IPO.
Lead Managers: Guiding the IPO Process
Kotak Mahindra Capital Company, Morgan Stanley India Company, Avendus Capital, Citigroup Global Markets India, Axis Capital, and Intensive Fiscal Services are acting as the book-running lead managers for the Lenskart Solutions IPO. These lead managers will play a crucial role in guiding the IPO process and ensuring a smooth transition for investors.
Conclusion: Should You Invest in the Lenskart IPO?
The Lenskart IPO is a highly anticipated issue, and investors are eagerly waiting to participate. With a strong financial performance track record and a solid business model, Lenskart is well-positioned for growth. However, investors must carefully evaluate the risk and reward before making an investment decision.
