As the eyeglasses retailer, one of the biggest omni-channel brands in India, prepares to go public next week, its goal is to raise Rs 2,150 crore via new stock issue, while investors and promoters want to sell down 13.22 crore shares.
In a pre-IPO (initial public offering) fundraising round, billionaire investor Radhakishan Damani, the creator of Avenue Supermarts (DMart), spent around Rs 90 crore in eyeglasses retailer Lenskart Solutions, according to persons familiar with the matter on Friday.
The investment is made in advance of Lenskart’s IPO, which is anticipated to go live for subscriptions next week.
According to the Draft Red Herring Prospectus (DRHP), the eyeglasses retailer plans to raise Rs 2,150 crore via the new issuing of equity shares. In addition, investors and promoters will sell 13.22 crore equity shares.
IPO earnings are used to finance expansion
Promoters: Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi
Investors: SVF II Lightbulb (Cayman) Ltd, Schroders Capital Private Equity Asia Mauritius Ltd, PI Opportunities Fund – II, Macritchie Investments Pte. Ltd., Kedaara Capital Fund II LLP, and Alpha Wave Ventures LP
For a number of strategic initiatives, Lenskart plans to use the IPO proceeds. These include capital expenditures for the establishment of new Company-operated Company-owned (CoCo) stores in India; payments for leases, rents, and licenses for these CoCo stores; investments in cloud infrastructure and technology; brand marketing and business promotion to increase brand awareness; possible unidentified inorganic acquisitions; and general corporate purposes.
Through its online platform and vast retail network, the company—one of India’s biggest omni-channel eyewear retailers—offers a huge selection of reasonably priced and stylish prescription eyeglasses, sunglasses, and contact lenses.
Lenskart: From an internet start-up to a multichannel powerhouses
Established in 2008, Lenskart began as an online marketplace for eyeglasses in 2010 and built its first physical location in New Delhi in 2013. It has developed over time into one of the most well-known consumer brands in the eyeglasses sector in the nation.
The business operates internationally in Southeast Asia and the Middle East and is present in metro, Tier-1, and Tier-2 locations.