Lenskart, the popular eyewear retailer, is gearing up for its Initial Public Offering (IPO) with a promising start in the grey market. The company's shares are set to hit the primary market on October 31, 2023, with investors showing keen interest even before the official launch.

IPO Details

Grey Market Performance

The grey market is showing strong enthusiasm for Lenskart's shares. Currently trading at a premium of ₹108 over the upper price band, the stock suggests a potential listing price of ₹510. This indicates a 27% premium over the IPO price, reflecting positive investor sentiment towards the company.

Financial Highlights

Lenskart has demonstrated impressive financial growth:

The company has shown a remarkable turnaround, moving from a loss in FY24 to a substantial profit in FY25. Revenue growth of 22% year-over-year further underscores the company's strong market position and expansion strategy.

Company Overview

Lenskart has established a significant presence in the eyewear market:

• Over 2,500 stores across India, Middle East, and Southeast Asia
• Plans for further expansion and technological upgrades

IPO Objectives

The funds raised through the IPO will be utilized for:

1. Store expansion
2. Technology upgrades
3. Brand-building initiatives

IPO Structure

The share allocation for the IPO is structured as follows:

Important Dates

• Tentative Share Allotment: November 6, 2023
• Expected Listing Date: November 10, 2023

Investors should note that while the grey market premium indicates positive sentiment, it's not an official measure and can be subject to change. As always, it's advisable to review the company's financials, growth prospects, and risk factors before making an investment decision.

Lenskart, the SoftBank and Temasek-backed eyewear company, is gearing up for its initial public offering (IPO) with a strategic approach to store locations and a significant investment from a retail mogul. The company's CEO, Peyush Bansal, recently disclosed an intriguing business strategy that has caught the attention of investors and market analysts alike.

Strategic Store Placements

Bansal shared what he called the company's 'little secret' - a strategy of opening Lenskart stores near DMart locations. This approach suggests a calculated move to capitalize on the high foot traffic typically associated with DMart's popular retail outlets.

Pre-IPO Investment Boost

Adding to the pre-IPO excitement, retail tycoon Radhakishan Damani has invested Rs 90.00 crore in Lenskart. This investment from the DMart founder comes just ahead of Lenskart's public offering.

IPO Details

Fund Utilization

A significant portion of the fresh issue proceeds, amounting to Rs 591.00 crore, is earmarked for lease and rent payments for company-owned stores in India. This allocation aligns with Lenskart's expansion strategy and its focus on physical retail presence.

Financial Performance

Lenskart reported a profit of Rs 297.00 crore for a recent financial year, demonstrating its financial viability. The company's profitability is a positive signal for potential investors considering the IPO.

Expansion Plans

Lenskart has outlined aggressive expansion plans, both in the domestic market and internationally. As the company scales up its operations, Bansal anticipates improvements in operating leverage, which could potentially lead to better profit margins and operational efficiency.

Market Implications

The unique strategy of positioning stores near DMart locations, coupled with Damani's investment, suggests a potential synergy between the two retail entities. This approach could provide Lenskart with a competitive edge in the rapidly growing eyewear market.

As Lenskart prepares to go public, investors will be closely watching how its strategic decisions and expansion plans translate into market performance. The company's innovative approach to retail locations and its ability to attract significant pre-IPO investments indicate a strong market position as it transitions to becoming a publicly-traded entity.