Lenskart, the popular eyewear retailer, is gearing up for its initial public offering (IPO), with founder-CEO Peyush Bansal poised to reap significant financial rewards. The upcoming IPO marks a milestone for the company and highlights the potential for wealth creation in India's startup ecosystem.

IPO Details and Valuation

Lenskart's IPO is set to open from October 31 to November 4, with the company aiming to raise ₹7,300 crore. The offer comprises:

• Fresh capital raise: ₹2,150 crore
• Offer for sale: ₹5,128 crore

At the upper price band of ₹402 per share, Lenskart is eyeing a valuation of approximately ₹70,000 crore.

Founder's Stake and Potential Gains

Peyush Bansal, the face behind Lenskart's success, may gain significantly from the IPO:

Neha Bansal, co-founder of Lenskart, will also participate in the offer for sale, divesting 10.1 lakh shares for an estimated ₹40.62 crore.

Financial Performance

Lenskart's financial trajectory shows the following:

The company has moved from a loss-making position to profitability within a year, while also achieving a 22% year-on-year revenue growth.

Market Expectations

The grey market is indicating a positive sentiment towards Lenskart's IPO:

• Expected listing premium: 25-26%
• Anticipated listing date: November 10

Conclusion

Lenskart's IPO represents a significant moment for the company and its founders. The substantial raise and high valuation reflect investor interest in the company's business model and growth prospects. As the IPO unfolds, it will be interesting to see how the market responds.

For potential investors, it's crucial to conduct thorough research and consider personal financial goals before making any investment decisions.

Lenskart, the popular eyewear retailer, is setting its sights on a premium valuation as it gears up for its initial public offering (IPO). The company has announced an IPO price band of Rs 382-402 per share, potentially valuing the firm at Rs 69,900 crore ($7.95 billion) at the upper end of the range.

Valuation Metrics

Lenskart's ambitious pricing strategy places it at premium multiples compared to its global peers:

Growth Trajectory

The company's premium valuation is underpinned by its projected growth trajectory:

• Revenue growth: Over 33% CAGR during FY23-25 (projected)
• Classification: High-growth company

Peer Comparison

In the Indian market, Lenskart's closest peer in terms of market capitalization is Nykaa, valued at Rs 72,582 crore. When compared to five Indian companies with market caps exceeding Rs 90,000 crore and top-line growth rates above 33%:

• Lenskart's P/E multiple is higher than most peers
• Its Price-to-Sales ratio remains comparable or lower than some competitors

Market Position

Lenskart's ambitious valuation reflects its strong position in the Indian eyewear market. The company has leveraged its omnichannel approach, combining online and offline retail strategies to capture a significant market share.

Investor Considerations

While Lenskart's growth projections are compelling, potential investors should carefully consider the following:

1. High valuation multiples compared to global peers
2. Projected financial performance and its sustainability
3. Competitive landscape in the eyewear industry
4. Market conditions and appetite for high-growth stocks

As Lenskart prepares to make its market debut, investors' response to its premium valuation will be closely watched. The outcome of this IPO could influence other high-growth companies in the Indian market considering going public.

Note: Investors are advised to read the offer documents carefully and consult financial advisors before making investment decisions.