Retail investors drive 3.3x rush as Lenskart IPO subscribed 2 times; GMP dips

New Delhi: The initial public offering of Lenskart Solutions Ltd received 2.01 times subscription on the second day of share sale on Monday.

Lenskart IPO Subscription on Day 2

The Rs 7,278-crore IPO received bids for 20,09,53,512 shares, as against 9,97,61,257 shares on offer, as per NSE data.

The Retail Individual Investors (RIIs) part fetched 3.33 times subscription, while the non-institutional investor category got subscribed 1.88 times. The portion for Qualified Institutional Buyers (QIBs) received 1.64 times the subscription.

Lenskart IPO GMP Today

Lenskart IPO GMP today is Rs 62. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the Lenskart share price was indicated at Rs 464 apiece, which is 15.42% higher than the IPO price of Rs 402.

Based on grey market trends from the past six sessions, the current GMP of Rs 62 indicates a dip. The GMP has ranged between a low of Rs 48 and a high of Rs 108, according to experts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Lenskart IPO Structure

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 public offering has 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.

According to the BSE circular, the company finalised the allocation of 8.13 crore equity shares to anchor investors. The shares were allotted at Rs 402 apiece, aggregating Rs 3,268 crore.

Lenskart IPO Objectives

Lenskart proposes to use the proceeds from the IPO for strategic initiatives, including capital expenditure to set up new company-operated, company-owned (CoCo) stores in India, and payments under 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.

Lenskart IPO Key Dates

The company's IPO will conclude on November 4.

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

About Lenskart

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, as well as international operations in Southeast Asia and the Middle East.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Avendus Capital, Citigroup Global Markets India, Axis Capital and Intensive Fiscal Services are the book-running lead managers to the offer. PTI SUM DRR DRR