• Source:JND
Add as a preferred

Lenskart IPO News: Lenskart, India's leading eyewear retailer, is preparing to go public with an ambitious IPO that will see a valuation of $10 billion, almost double the valuation of its last funding round. The company plans to file a draft red-herring prospectus by May and aims to enter the stock market shortly, possibly within the calendar year.

IPO preparations are underway

Lenskart has been in discussions about its IPO for over a year, with Peyush Bansal and key investors currently finalising the details of the offering with bankers. The company hopes to raise around $1 billion through a public listing.

As reported in the Economic Times, the compa is now set to file the DRHP in May, and all stakeholders agree to go ahead with a public listing. But there are doubts whether this will give enough time to secure a pre-IPO funding round before listing.

Its valuation will be between $5 billion and $10 billion in about 12 months

The IPO plans mark an unusual shift from a year ago, when Bansal had not yet acted on these plans. Although the company was able to raise $200 million in a secondary transaction in June 2023 that valued it at $5 billion, the shares in this secondary deal were allotted at their fair value, which caused prices to continue to rise.

Also Read: 'No Consent Needed To Collect Banking Data': RBI Defends Credit Rating Companies In SC

Huge manufacturing footprint and global expansion

Generating revenues of $1 billion or about Rs 8,400 crore, Lenskart is a growth driver in the Indian eyewear sector. It produces 3-4 crore or 30-40 million lenses and 25 million or 25 million frames per annum.

Its strategy is also aggressive. In 2022, Lenskart acquired Japanese eyewear brand Oneday in a $400 million deal. In addition, it has a significant stake in French omnichannel eyewear brand Le Petit Lunetier, which further strengthens its international presence.

Increasing profitability ahead of IPO launch

Lenskart's endeavour is to achieve profitability ahead of the IPO launch. The company's net loss has reduced dramatically, from ₹640 million in FY23 to ₹100 million in FY24. Its operating income increased from ₹542.8 billion in FY23 to ₹542.8 billion in FY24, witnessing a 43 percent year-on-year growth. At the same time, EBITDA doubled from ₹403 million in FY23 to ₹856 million in FY24, reflecting strong financial growth.

Excellent fundamentals, rapidly growing global presence and rising investor confidence make Lenskart IPO one of the most anticipated public listings for Indian startups.

Also Read: Investors Lose Over Rs 27 Lakh Crore In A Week As Share Market Continues To Slump

Also In News