Eyewear retailer Lenskart Solutions has received a significant boost ahead of its initial public offering (IPO), with Radhakishan Damani, the founder of Avenue Supermarts (DMart), investing approximately ₹90 crore in a pre-IPO funding round.

Lenskart's Upcoming IPO

Lenskart is gearing up for its IPO, which is expected to open for public subscription next week. The company aims to raise ₹2,150 crore through fresh equity shares. Additionally, promoters and existing investors plan to offload 13.22 crore equity shares through an offer for sale.

Key Details of the IPO

Utilization of IPO Proceeds

Lenskart has outlined several key areas for utilizing the funds raised through the IPO:

1. Expanding company-owned stores in India
2. Funding lease and licensing agreements
3. Investing in technology infrastructure
4. Brand marketing initiatives
5. Potential acquisitions
6. General corporate purposes

About Lenskart

Founded in 2008, Lenskart has established itself as one of India's largest omni-channel eyewear retailers. The company has a strong presence across:

• Metro cities
• Tier-1 cities
• Tier-2 cities

In addition to its robust domestic operations, Lenskart has expanded internationally, with a presence in Southeast Asia and the Middle East.

Market Impact

The investment by Radhakishan Damani, a renowned figure in the Indian retail sector, could be seen as a vote of confidence in Lenskart's business model and growth prospects. This pre-IPO funding may potentially generate increased interest among retail and institutional investors for the upcoming public offering.

As Lenskart prepares to enter the public market, investors will likely keep a close watch on its financial performance, growth strategy, and ability to compete in the evolving eyewear retail landscape.

Lenskart Solutions, the popular eyewear company, has received the green light from the Securities and Exchange Board of India (Sebi) for its Initial Public Offering (IPO). The approval, granted on October 3, paves the way for the company's much-anticipated debut on Indian stock exchanges, tentatively scheduled for mid-November.

IPO Structure

The IPO comprises two components:

1. A fresh issue of shares worth Rs 2,150 crore
2. An offer-for-sale (OFS) of 13.23 crore shares by existing shareholders

Key Stakeholders Participating in OFS

Several prominent stakeholders will partially divest their holdings through the OFS, including:

• Founders: Peyush Bansal, Neha Bansal, Sumeet Kapahi, and Amit Chaudhary
• Investors: SoftBank, Premji Invest, Temasek, Kedaara Capital, and Alpha Wave Global

Lenskart's Financial Performance

Lenskart has demonstrated strong financial growth:

The company has shown a remarkable turnaround, moving from a loss of Rs 10.00 crore in FY24 to a net profit of Rs 297.00 crore in FY25. This financial improvement, coupled with a 22% year-on-year revenue growth, positions Lenskart as an attractive prospect for potential investors.

Company Overview

Lenskart has established a strong presence in the eyewear market with over 2,500 stores globally. This extensive network has likely contributed to its robust financial performance and market position.

IPO Management

The book-running lead managers for Lenskart's IPO include:

• Kotak Mahindra Capital
• Morgan Stanley
• Citi
• Avendus Capital
• Intensive Fiscal Services

These reputable financial institutions will play a crucial role in managing the IPO process and ensuring its smooth execution.

As Lenskart prepares for its public debut, investors and market watchers will be keenly observing how this rapidly growing eyewear company performs on the stock market. The successful Sebi approval marks a significant milestone in Lenskart's journey towards becoming a publicly-traded company.