Lenskart Solutions, the popular eyewear retailer, is set to launch its Initial Public Offering (IPO) tomorrow, but the grey market is showing signs of cooling enthusiasm. The company's shares, which were earlier commanding a significant premium, have seen a notable decline in the unofficial grey market.

Grey Market Premium Drops

The grey market premium for Lenskart shares has fallen sharply from ₹108 to ₹48, against the upper band of the issue price at ₹402 per share. This represents a current premium of about 12% over the issue price, indicating a tempered but still positive sentiment among informal traders.

IPO Details

Lenskart's public issue comprises a fresh issue of shares worth ₹2,150 crore and an offer for sale of 12.76 crore shares by existing investors, including founder Peyush Bansal, SoftBank, and Kedaara Capital, among others.

Company Performance

Lenskart has shown strong financial performance:

The company has demonstrated impressive growth:

• Revenue growth: Over 30% annually for the past three years
• EBITDA growth: More than 90% annually

Business Overview

Lenskart has established a significant presence in the eyewear market:

• Over 2,100 stores in operation
• Approximately 40% of revenue derived from international markets

The company's robust store network and growing international presence underscore its expansion strategy and market penetration efforts.

As Lenskart prepares to go public, investors will be closely watching how the market responds to this high-growth eyewear retailer. The decline in grey market premium suggests a possible recalibration of expectations, but the true test will come when the IPO opens for public subscription tomorrow.

Lenskart Solutions Ltd., India's largest prescription eyeglasses retailer by volume among organized players, is set to launch its Initial Public Offering (IPO) on Friday. The technology-driven eyewear company aims to raise Rs 7,278 crore through this public issue, marking a significant milestone in its growth journey.

IPO Details

Offer for Sale Participants

The offer for sale component of the IPO includes shares from several existing investors:

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

Financial Performance

Lenskart has demonstrated strong financial growth and profitability:

The company's transition to profitability is noteworthy, especially considering its history of losses in previous years.

Key Highlights

1. Market Position: Lenskart has established itself as the largest prescription eyeglasses seller by volume among organized retailers in India.

2. Technology-Driven: The company leverages technology to enhance its operations and customer experience.

3. Pre-IPO Investment: Radhakishan Damani, known for DMart, invested Rs 90 crore in Lenskart ahead of the IPO, potentially boosting investor confidence.

Risk Factors

Potential investors should consider the following risks:

1. Ongoing legal proceedings against CEO Peyush Bansal and other senior personnel.
2. Data security concerns, given the company's technology-centric approach.
3. Heavy reliance on marketing expenditure for growth and brand building.

The Lenskart IPO presents an opportunity for investors to participate in the growth of India's eyewear market. However, as with any investment, it's crucial to carefully evaluate the company's prospects, financials, and associated risks before making an investment decision.