SBI Mutual Fund has invested ₹100 crore in Lenskart Solutions, the eyewear retailer, ahead of its anticipated initial public offering (IPO). This investment comes as Lenskart prepares for its IPO, which is expected to open on October 31, 2025.

Investment Details

SBI Optimal Equity Fund and SBI Emergent Fund, both part of SBI Mutual Fund, have acquired shares in Lenskart at ₹402 per equity share. This price aligns with the upper end of Lenskart's proposed IPO price band of ₹382-402 per share.

Ownership Changes

As part of this transaction, promoter Neha Bansal has sold 2,487,561 equity shares, resulting in a slight reduction of her stake in the company:

Note: Percentages are on a fully diluted basis

Recent Investments

This investment by SBI Mutual Fund follows another recent pre-IPO transaction involving billionaire investor Radhakishan Damani, who invested approximately ₹90 crore in Lenskart.

IPO Timeline

Lenskart's Performance

In the fiscal year 2025, Lenskart reported:

• Sales of 27.2 million eyewear units
• Service to 12.41 million customer accounts globally

IPO Proceeds Utilization

Lenskart plans to use the funds raised from the IPO for various initiatives:

1. Opening new stores
2. Enhancing technology infrastructure
3. Brand marketing
4. Potential acquisitions

The investment by SBI Mutual Fund, along with the recent investment by Radhakishan Damani, suggests institutional interest in Lenskart ahead of its IPO. The company's reported sales figures and plans for utilizing IPO proceeds indicate its growth strategy.

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.