Lenskart, an efficient omnichannel eyewear retailer under the management of Peyush Bansal, is reported to have received the green light from the Securities and Exchange Board of India (SEBI) regarding its planned Initial Public Offering (IPO). It is an important regulatory certification that opens the door to one of the biggest public market listings expected this year. The Gurugram-based firm had first submitted its draft red herding prospectus (DRHP) to SEBI way back in July. 

Structure of Lenskart’s IPO

Lenskart is set to have a large size of IPO, which will range between ₹7,500 crore and ₹8,000 crore. This is roughly estimated to be between $850 and $900 million in US dollar values, as reported by The Economic Times. Upon obtaining the SEBI permit obtained the company will submit its new prospectus within the next few weeks. According to sources, Lenskart intends to list its shares on the stock exchanges in mid-November.

The proposed public offering is designed as a fresh issue of shares and Offer for Sale (OFS) by current shareholders. Lenskart is intending to raise ₹2150 crore in fresh capital that will directly inject money into the business to support business growth and strategic initiatives. The IPO will also help to sell 13.23 crore shares under the OFS route in addition to the fresh issue.

The OFS is involved with a long list of existing stakeholders, a group consisting of founders and marquee institutional investors. Leading investment firms that are selling shares are SoftBank, Temasek, Premji Invest, Kedaara Capital, Alpha Wave Global, and Schroders Capital. Some of its founders, such as Peyush Bansal, Neha Bansal, Sumeet Kapahi, and Amit Chaudhary, will sell a part of their stakes as well.

The largest portion of stakes is supposed to be sold by SoftBank, and the CEO, Peyush Bansal, himself will sell around 2.05 crore shares. Some of the investment banks that will handle the entire IPO process include Kotak Mahindra Capital, Morgan Stanley, Citi, Avendus Capital, and Intensive Fiscal Services.

Revenue growth and investor-backed

The fresh issue proceeds obtained as a result of the fresh issue component of the IPO are already allocated towards some major strategic investments to facilitate future growth and build on the existing operational base of Lenskart. The DRHP has speculated that much of the capital will be used in the establishment of new company-owned stores, expanding its retailing operations around the nation.

The budget will be utilized to cover leasing and rental payments related to its growing network. The company has a wide network with more than 2,700 outlets. Approximately ₹272 crore will be used in the growth of new stores, and more substantial ₹591 crore will be utilized in the rental and other related costs of the current retail space. Other applications of the capital as a strategy encompass increasing the technology base and marketing the company brand, as well as financing possible acquisitions that support its growth plan.

The timing of the IPO application is also interesting, considering the financial performance of the company in the recent past. Lenskart registered significant financial turnover in the last financial year, and it was revealed to be profitable in FY25. The firm reported a net profit of ₹297 crore, which was a huge turnaround considering that in the previous fiscal year, FY24, the company was recording a net loss of ₹10 crore.

This profitability was supported by the robust increase in revenue, which increased by 22% annually to ₹6,653 crore. This revenue increase was mainly aided by the ongoing growth of its massive retail business activities, as well as the strong and growing online retail activities by consumers. Lenskart has managed to secure more than $1.8 billion in international capital, including such giants as SoftBank and Abu Dhabi Investment Authority (ADIA), which owns a significant 12.45% stake in the eyewear giant. 

Conclusion

The reported SEBI approval is a critical milestone in the lives of Peyush Bansal-led Lenskart, as it confirms their business approach of making a profitable move by utilizing an omnichannel approach. The IPO will offer liquidity to the early investors, such as SoftBank and Temasek, and add much-needed new capital, with a massive public offering of the company in the range of ₹7,500- ₹8,000 crore. The new capital will drive aggressive retail growth, technology development, and possible acquisition, solidifying Lenskart as the leader in the eyewear industry and preparing the company to enter its next stage of impressive, publicly traded expansion.