Lenskart IPO: An Overview
Lenskart Solutions Ltd., one of India’s leading eyewear products makers, has announced the price band for its upcoming initial public offering (IPO) worth Rs 7,278 crore. The IPO will open for subscription on October 31 and close on November 4, with the price band set at Rs 382-402 per share.
Investors can bid for shares in the Lenskart IPO between Rs 382 and Rs 402, with the minimum bid size being 37 shares per lot, requiring an investment of Rs 14,874. The portion for retail investors in the IPO is capped at 10% of the issue.
Valuation and OFS
On the upper price band, the company is valued at nearly Rs 70,000 crore. The Peyush Bansal-led company will raise Rs 2,150 crore via fresh issue of shares, while promoters and investors will be offloading 12.75 crore equity shares via offer-for-sale (OFS). The OFS amounts to Rs 5,128 crore, including from the likes of Softbank Vision Fund, Kedaara Capital, TR Capital, and Chiratae Ventures.
As per the IPO offer documents, 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.
Use of IPO Proceeds
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. Lenskart also aims to utilise Rs 213 crore for investing in technology and cloud infrastructure. Remaining funds will be used for general corporate purposes.
For more information on IPO proceeds and how they are used, check out our detailed guide. Additionally, you can learn more about company valuation and its importance in the stock market.
IPO Allotment and Listing
The IPO allotment will be tentatively finalised on November 6, and shares will be credited into the demat accounts by November 7. Lenskart Solutions will list on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on November 10.
Kotak Mahindra Capital Co., Morgan Stanley India Co., Avendus Capital, Citigroup Global Markets India, Axis Capital Ltd., and Intensive Fiscal Services Ltd. are acting as the book-running lead managers for the Lenskart Solutions IPO.
Investor Interest
The IPO has been in focus for quite some time, with DMart’s Radhakishan Damani having already invested Rs 90 crore ahead of the issue opening. This investment is a testament to the growing interest in the Indian stock market, particularly in the eyewear industry.
Conclusion
In conclusion, the Lenskart IPO is an exciting opportunity for investors to participate in the growth of one of India’s leading eyewear products makers. With a strong management team, a solid business model, and a growing market, Lenskart is well-positioned for long-term success. For more information on IPO investment and how to participate in the Lenskart IPO, check out our detailed guide.