Tech entrepreneur Peyush Bansal acquires a 2.5% share in Lenskart at a 90% discount before the initial public offering (IPO)
In a significant move, Indian eyewear brand Lenskart has announced plans for expansion, including the establishment of 620 new company-owned stores by FY29, at an investment of Rs 272.6 crore. This news comes alongside the company's upcoming Initial Public Offering (IPO), which is expected to be among India's largest this year.
Lenskart, one of India's largest eyewear brands with a growing international presence in Southeast Asia and the Middle East, has seen impressive growth. The company's most recent fundraising in June 2024 valued the company at $5 billion, and subsequent markups have increased its valuation to $6.1 billion.
The IPO will consist of a fresh issue of Rs 2,150 crore and an offer for sale (OFS) component. Peyush Bansal, co-founder and CEO of Lenskart, along with Neha Bansal, Amit Chaudhary, and Sumeet Kapahi, will collectively offload 31.8 million shares in the OFS. The promoter group holds approximately 20% of Lenskart, while institutional investors own the remainder. Key investors in Lenskart include Tiger Global, TPG, Kedaara Capital, and Falcon Edge.
In a separate development, Peyush Bansal purchased a 2.5% stake in the company for Rs 222 crore, increasing his ownership in the company. The stake was purchased from a group of institutional investors, including SoftBank, Chiratae Ventures, Kedaara Capital, TR Capital, Temasek, and Premji Invest.
The funds from the IPO will be allocated as follows: Rs 213.4 crore will fund technology and cloud infrastructure, Rs 320 crore is earmarked for branding and promotional activities, and Rs 591.4 crore will be used for lease and rental payments for existing stores. Rs 272.6 crore will be set aside for establishing the new stores.
Lenskart's financial performance has been strong, with a net profit of Rs 297.3 crore in FY25, a significant turnaround from a loss of Rs 10.2 crore in FY24. Operating revenue increased nearly 23% to Rs 6,652.5 crore in the previous fiscal year.
The buyback is part of a growing trend among Indian internet companies that have allocated equity to founders at discounted valuations ahead of initial public offerings. Peyush Bansal, who already held a 10.3% stake in Lenskart before the buyback, sold 20.5 million shares in the upcoming IPO. At a targeted valuation of Rs 70,000-75,000 crore (around $8-9 billion), the sale of 20.5 million shares could net Bansal between Rs 700 crore and Rs 750 crore.
The secondary share purchase values Lenskart at Rs 8,700 crore (approximately $1 billion). The buyback was funded via a structured payment mechanism.
As Lenskart moves forward with its expansion plans and IPO, it continues to solidify its position as a leading player in the Indian eyewear market and beyond.
Read also:
- Trade Disputes Escalate: Trump Imposes Tariffs, India Retaliates; threatened boycott ranges from McDonald's, Coca-Cola to iPhones
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
- Celebrated Title: Cheesemakers Blessed Upon
- Construction and renovation projects in Cham county granted €24.8 million focus on energy efficiency
){kind=link}