Peyush Bansal purchases a 2.5% share in Lenskart at a 90% discount before the company's initial public offering.
Lenskart, one of India's leading eyewear brands, is gearing up for its highly anticipated initial public offering (IPO) this year. The company, which boasts a growing international presence across Southeast Asia and the Middle East, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI).
In a significant move, Peyush Bansal, co-founder and CEO of Lenskart, has acquired a 2.5% stake in the company for Rs 222 crore. However, despite this buyback, Bansal is also selling 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 these shares could net Bansal between Rs 700 crore and Rs 750 crore.
The purchase of Bansal's shares was executed in a series of cash transactions, with him buying 42.7 million shares at Rs 52 apiece. The funds from this secondary share purchase value Lenskart at Rs 8,700 crore (approximately $1 billion).
The promoter group, which includes Bansal, holds around 20% in Lenskart, with institutional investors owning the remainder. Besides Bansal, institutions such as Falcon Edge Capital and SoftBank have also sold shares in Lenskart. This trend of equity allocation to founders at discounted valuations ahead of IPOs is becoming increasingly common among Indian internet companies.
The public offering of Lenskart includes a fresh issue of Rs 2,150 crore and an offer for sale (OFS) component. The stake purchased by Bansal was 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 strategically. Rs 213.4 crore will fund technology and cloud infrastructure, while Rs 320 crore is earmarked for branding and promotional activities. Additionally, Rs 591.4 crore will go towards lease and rental payments for existing stores, and Rs 272.6 crore from the IPO proceeds will be allocated for establishing 620 new company-owned (CoCo) stores by FY29.
The financial activities leading up to the IPO include a buyback, with fellow co-founders Neha Bansal, Amit Chaudhary, and Sumeet Kapahi offloading a collective 31.8 million shares. This move comes after Lenskart posted a net profit of Rs 297.3 crore in FY25, a significant turnaround from a loss of Rs 10.2 crore in FY24.
The IPO is expected to be among India's largest this year, further cementing Lenskart's position as a key player in the eyewear market. With its strategic investments and robust financial planning, Lenskart is poised for continued growth and success in the coming years.
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