Lenskart IPO to fetch $125 Mn for founders; early investors set to reap up to 17X returns

Omnichannel eyewear retailer Lenskart’s Rs 7,278 crore IPO is set to deliver hefty returns ranging from 4X to nearly 17X, offering a major payday for its promoters and early investors. The issue will open for subscription on October 31.

According to its RHP, the Gurugram-based company aims to raise Rs 2,150 crore through a fresh issue, while existing shareholders will sell up to 12.75 crore shares worth Rs 5,128 crore via an offer for sale (OFS) at the upper price band of Rs 402 per share, valuing the company at around Rs 70,000 crore ($8 billion).

Lenskart’s promoters are set for a major payday, collectively selling shares worth around Rs 1,100 crore (approximately $125 million). Co-founder and CEO Peyush Bansal will offload shares worth Rs 824 crore, while Co-founder, Neha Bansal, will sell shares worth Rs 41 crore. Ahead of the RHP filing, Neha Bansal had sold 22.38 lakh shares to Shrikanta R. Damani, wife of DMart founder Radhakishan Damani, at Rs 402 per share, amounting to Rs 90 crore. 

Another Co-founder Amit Chaudhary and Sumeet Kapahi, an early member of the founding team, will also participate in the offer for sale (OFS), each selling shares worth Rs 115 crore.

Lenskart’s early backer SoftBank is set to cash out the largest amount from the IPO, selling 2.55 crore shares worth Rs 1,026 crore. With an average acquisition cost of Rs 74.26 per share, the fund will make a 5.4X return on its investment. Schroders Capital will offload 1.91 crore shares worth Rs 766 crore, with a cost of acquisition of Rs 40.9 per share, yielding nearly a 10X return.

Premji Invest will offload 87 lakh shares worth Rs 350 crore. With an average cost of acquisition of just Rs 24.14 per share, the venture firm emerges as the biggest winner by multiples, recording a 16.7X return, according to the RHP. Temasek, meanwhile, will sell shares worth Rs 316 crore, reaping a 4.1X return. Kedaara Capital and Alpha Wave, also participating in the OFS, will book hefty returns of 5.4X and 3.8X, respectively, cashing out Rs 296 crore and Rs 268 crore.