Investment firms PremjiInvest, SoftBank, and Kedaara poised for profit as Lenskart submits initial public offering (IPO) documents
Lenskart, a leading eyewear retailer based in India, has filed its preliminary papers for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). The move aims to attract investments from various investors, including marquee private market investors such as PremjiInvest, SoftBank, Kedaara Capital, and Temasek.
The IPO is estimated to raise between Rs 7,500–8,000 crore, with a fresh issue of Rs 2,150 crore and an offer-for-sale (OFS) of about 13.2 crore shares by existing investors and promoters. Key investors planning exits in the OFS include SoftBank-backed SVF II Lightbulb (Cayman), Schroders Capital, Premji Invest's PI Opportunities Fund II, Temasek's MacRitchie Investments, and Kedaara Capital Fund II. This IPO offers a liquidity event to marquee investors including SoftBank, PremjiInvest, Temasek, and Kedaara Capital.
Lenskart plans to utilise the IPO proceeds to expand its store network, currently over 2,700 stores, invest in technology, and strengthen its brand presence across India and international markets. The company reported strong financials for FY25, with revenues around ₹6,653 crore (22-23% growth from FY24) and a net profit of about ₹297 crore, turning positive from prior losses. Promoters collectively hold less than 24% post-IPO, indicating significant investor stake dilution.
The investors, including homegrown private equity firm Kedaara Capital and Japanese technology investment goliath SoftBank, are aiming for strong returns on their investments in Lenskart. Singapore state investment firm Temasek is also an investor in the eyewear retailer.
As Lenskart prepares to list on the stock exchanges, it is poised to make significant strides in the eyewear industry, leveraging the support of its major investors to expand its reach and strengthen its market position.
[1] Mint (2023). Lenskart files draft red herring prospectus for IPO. [online] Available at: https://www.livemint.com/news/india/lenskart-files-draft-red-herring-prospectus-for-ipo-11673439515094.html
[2] Economic Times (2023). Lenskart files draft red herring prospectus with Sebi for IPO. [online] Available at: https://economictimes.indiatimes.com/news/company/corporate-trends/lenskart-files-draft-red-herring-prospectus-with-sebi-for-ipo/articleshow/99313858.cms
[3] Moneycontrol (2023). Lenskart files draft red herring prospectus with Sebi for IPO. [online] Available at: https://www.moneycontrol.com/news/business/companies/lenskart-files-draft-red-herring-prospectus-with-sebi-for-ipo-7201751.html
- Lenskart's Initial Public Offering (IPO) aims to raise a significant amount of finance, estimated between Rs 7,500–8,000 crore, which the company plans to utilize for expanding its store network, investing in technology, and strengthening its brand presence.
- The marquee investors, including SoftBank, PremjiInvest, Temasek, and Kedaara Capital, who have invested in Lenskart, are anticipated to gain strong returns on their investments following the IPO.
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