Lenskart IPO: Anchor book sees demand with bids of Rs 68,000 cr from global, domestic investors

New Delhi, Oct 30 (PTI) Eyewear retailer Lenskart Solutions on Thursday garnered a blockbuster response from anchor investors ahead of its initial public offering (IPO), receiving bids of around Rs 68,000 crore, sources said.

This is nearly 10 times the issue size of Rs 7,278 crore, and 20 times the anchor book size of more than Rs 3,200 crore.

The anchor book saw participation from around 70 marquee investors, including leading global institutions such as the Government of Singapore, Monetary Authority of Singapore, T Rowe Price, BlackRock, Fidelity, Nomura, and Goldman Sachs, according to a circular uploaded on BSE's website. Foreign institutional investors accounted for about 52 per cent of the anchor book.

On the domestic front, major mutual funds such as SBI Mutual Fund, ICICI Prudential MF, HDFC MF, Kotak MF, and Aditya Birla Sun Life MF participated in the offering.

According to the circular, the company finalised the allocation of 8.13 crore equity shares to anchor investors. The shares were allotted at Rs 400 apiece, aggregating Rs 3,268 crore.

The company's Rs 7,278 crore IPO will be open for public subscription on October 31 and conclude on November 4.

The eyewear firm has fixed a price band of Rs 382 to Rs 402 per share for the IPO, targeting a valuation of over Rs 69,700 crore at the upper end.

Lenskart's maiden public offering comprises a fresh issue of shares worth Rs 2,150 crore and an offer for sale (OFS) of 12.75 crore equity shares by promoters and investors.

As a part of the OFS, promoters -- Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi, and investors -- SVF II Lightbulb (Cayman) Ltd, Schroders Capital Private Equity Asia Mauritius Ltd, PI Opportunities Fund-II, Macritchie Investments Pte Ltd, Kedaara Capital Fund II LLP, and Alpha Wave Ventures LP -- would offload shares.

Lenskart proposes to use the proceeds from the IPO for such strategic initiatives as capital expenditure for setting up new company-operated, company-owned (CoCo) stores in India, and payments related to lease, rent, and licence agreements for these CoCo stores.

Investments in technology and cloud infrastructure, brand marketing and business promotion to enhance brand awareness, potential unidentified inorganic acquisitions, and general corporate purposes were some of the other goals stated by the firm.

In the pre-IPO funding round, SBI Mutual Fund invested Rs 100 crore in Lenskart, while Radhakishan Damani, founder of Avenue Supermarts (DMart), invested around Rs 90 crore.

The company, one of India's largest omni-channel eyewear retailers, offers a wide range of prescription eyeglasses, sunglasses, and contact lenses through its online platform and retail network.

Founded in 2008, Lenskart started as an online eyewear platform in 2010 and opened its first physical store in New Delhi in 2013.

The company has a presence across metro, tier-1, and tier-2 cities, along with international operations in Southeast Asia and the Middle East.

Lenskart will make its debut on the stock exchanges on November 10. PTI SP VN VN