SBI Mutual Fund has made a significant pre-IPO investment in Lenskart, the popular eyewear retailer, as the company prepares for its initial public offering (IPO). This move highlights the growing interest in Lenskart's business model and its potential in the Indian market.

Investment Details

SBI Mutual Fund has invested ₹100 crore in Lenskart through two of its alternate investment funds:

1. SBI Optimal Equity Fund
2. SBI Emergent Fund

The investment was made at ₹402 per equity share, aligning with the upper end of Lenskart's proposed IPO price band.

Share Transfer and Ownership Changes

As part of this investment:

• Neha Bansal, a promoter of Lenskart, transferred 2,487,561 equity shares.
• This transfer resulted in a slight reduction of Neha Bansal's stake in the company from 7.61% to 7.46%.

Lenskart IPO Details

Previous Share Sale

Neha Bansal had previously sold shares worth ₹90 crore to Shrikanta R Damani. The current valuation suggests a potential 52x return on her holdings, indicating significant value appreciation for early investors in Lenskart.

Investor Implications

1. Pre-IPO Interest: SBI Mutual Fund's investment demonstrates strong institutional interest in Lenskart before its public debut.
2. Valuation Indicator: The investment at ₹402 per share, matching the upper end of the IPO price band, suggests confidence in Lenskart's valuation.
3. Market Sentiment: This pre-IPO round may positively influence retail investor sentiment towards the upcoming public offering.

As Lenskart prepares to go public, investors will be closely watching how this eyewear retailer performs in the stock market, especially given the strong pre-IPO interest from institutional investors like SBI Mutual Fund.

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.