Lenskart Solutions, the leading organized prescription eyeglasses retailer in India, measured in terms of B2C sales volume, has been able to close in on its Initial Public Offering (IPO) by raising a substantial amount of funds. The eyewear giant has collected ₹200 crore in secondary share offers by two high-class investors. The SBI Mutual Fund and Avenue Supermart founder, Radhakishan Damani, equally contributed the investment amount. 

IPO structure and planned usage of capital

The large fundraising follows Lenskart already gaining clearance of its public issue by the Securities and Exchange Board of India (SEBI). This capital injection, generated by the operations in the secondary market, is an indication of the high confidence of the major players in the market in the business concept of Lenskart and its prospects of future expansion. 

The structure of the upcoming Lenskart IPO that has been confirmed is multifaceted and will enable the company to raise a lot of capital on behalf of the early investors. The initial public offering will be divided into two parts. A Fresh Share Issue, under which the firm intends to collect a substantial ₹2,150 crore. This aspect is designed to infuse new capital in the firm to facilitate its short-term growth and expansion strategies.

An Offer-for-Sale (OFS) will form the second part of the IPO structure, where the current shareholders will sell about 13.2 crore shares. The early investors and the promoters can sell their stocks on this OFS and get a payback on their investment when the company becomes publicly listed.

The jointed structure of the IPO will be a major challenge to investor enthusiasm in tech-enabled retail ventures in India, especially those that have a well-established offline presence with a powerful online setup.

The company has specified its intended purpose for the large sum of money expected to be collected in the IPO. These funds will be allocated to various strategic areas that are important to the future growth and development of Lenskart.

The intended uses are: establishing new stores to increase its physical presence in the marketplace; modernizing its technology platform to sustain its competitive advantage; launching major brand promotional campaigns to further its presence in a market; and investing in potential takeovers to extend its business coverage or product line.

IPO data Source: ScanX  

Vision and growth strategy

The Chief Executive Officer of Lenskart, Peyush Bansal, has stated a clear strategic vision of the company as it would appear after the upcoming listing, and the IPO would be considered an important milestone. His focus is on the accomplishment of two major goals.

First, the company intends to tap its talent potential, which includes creating an environment of innovation and professional development among the workforce. Second, it is aimed at operating and ensuring efficiency and profitability through operational excellence in every business aspect.

The growth strategy of the company is to make use of technology, especially artificial intelligence (AI). Lenskart has set the ambitious targets to remain at the top of the eyewear industry with technological innovation. The creation of phone-based eye tests is on the list of these future objectives, and this would make eye care more available to a broader population.

Conclusion

In a critical move, Lenskart Solutions has received important funding of ₹200 crore by the market giants Radhakishan Damani and SBI mutual fund, casting a solid market confidence right before its highly anticipated IPO. The funds will be intelligently deployed in expanding stores, upgrading technology, marketing, and acquisitions since the public offering will raise ₹2,150 crore with an Offer-for-Sale of around 13.2 crore shares.