Lenskart Gets SEBI Nod for Rs 2,150-Crore IPO Launch in India

Lenskart Ltd., has got the green light from SEBI to raise Rs 2,150 crore through an initial public offering (IPO). The move, which is already the first for the Indian eyewear sector, will make the company the first eyewear-only brand to be listed on the Indian stock exchanges.

Lenskart was started in 2010 as an online eyewear retailer and in 2013 the company had its first brick-and-mortar store. The company has had a brilliant run of rapid expansion over the years, to the point that, currently, it has 2,067 stores in India and 656 stores across the border with it, and thus, it is an undisputed leader of the market that is estimated to grow at a double-digit rate for the next five years.

As Jefferies analysts point out, the demand for eyewear will experience an exponential increase; this is due to vision problems that are on the rise, more patients being reached and gaining more health insurance coverage as a result of both employer and government insurance schemes.

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The IPO application was done in July; it is anticipated that new shares worth Rs 2,150 crore will be issued. The revenues will be used to increase the number of company-owned stores, upgrade the technology and cloud infrastructure, and for general corporate purposes.

The valuation of Lenskart was $6.1 billion as of September 10, based on Tracxn data. At the moment when Lenskart is getting ready for its IPO, India’s eyewear sector is benefitting greatly from the swell of organized retail and digital adoption. Such a scenario allows the company to take advantage of its solid infrastructure, well-known brand, and growing consumer base.