Peyush Bansal, CEO of Lenskart, has responded to questions about the eyewear company's valuation as it prepares for its initial public offering (IPO). Bansal's comments provide insight into the company's priorities and market approach.

CEO's Focus: Quality and Affordability

Bansal emphasized that his primary focus is on delivering quality spectacles to customers at the lowest possible price, rather than justifying market multiples. He stated that determining valuation is not an entrepreneur's role, highlighting a clear separation between his responsibilities as a business leader and the financial aspects of the IPO.

Valuation and Market Comparisons

Lenskart is reportedly seeking a valuation that may surpass its global peers, raising questions among market observers. The company is also trading at premium multiples compared to domestic competitor Nykaa. However, Bansal refrained from directly addressing these comparisons, maintaining that valuation is determined by advisers and not the entrepreneur's responsibility.

Investor Perspective

Jayasankar Venkataraman, managing director at Kotak Mahindra Capital, which is advising on the listing, provided insight into how institutional investors are approaching Lenskart's valuation:

• Investors are evaluating the company based on its growth track record in India and internationally.
• Announcements regarding anchor investors are expected, which could provide more clarity on market sentiment.

IPO Details

As Lenskart prepares for its market debut, the company's approach to valuation and its focus on core business principles will be closely watched by investors and industry observers. The IPO's performance could provide insights into the market's appetite for high-growth companies in the consumer sector, particularly those emphasizing quality and affordability.

Lenskart Solutions, the popular eyewear retailer, has announced its much-anticipated Initial Public Offering (IPO) with a price band of Rs 382-402 per share. The company aims to raise Rs 7,278 crore through this public issue, marking a significant milestone in its journey.

IPO Details

Offer Structure

The IPO comprises a fresh issue of shares worth Rs 2,150 crore and an offer for sale (OFS) of Rs 5,128 crore by promoters and investors. Notable participants in the OFS include:

• SoftBank Vision Fund
• Kedaara Capital
• TR Capital
• Chiratae Ventures

Retail Allocation and Pre-IPO Investment

The retail portion of the IPO is capped at 10%, allowing individual investors to participate in this offering. Interestingly, Radhakishan Damani, the founder of DMart, has already invested Rs 90 crore in Lenskart ahead of the IPO opening, signaling confidence in the company's prospects.

Utilization of Funds

Lenskart plans to utilize the fresh issue proceeds for various strategic initiatives:

This allocation demonstrates Lenskart's focus on expanding its physical presence, enhancing brand visibility, and strengthening its technological capabilities.

The Lenskart IPO presents an opportunity for investors to participate in the growth story of one of India's leading eyewear retailers. With its omnichannel approach and focus on technology-driven solutions, Lenskart has positioned itself as a key player in the evolving eyewear market.

As always, potential investors are advised to carefully review the company's prospectus and consider their financial goals before making an investment decision.