Summary of this article
Lenskart shares listed on the exchanges on November 10
Lenskart shares made a weak debut on the NSE and BSE
Lenskart shares listed with a discount on the exchanges
Lenskart Solutions IPO Listing Price: Lenskart Solutions Ltd shares made their D-street debut on the NSE and BSE on November 10. The eyewear retailer’s shares made a weak debut on the NSE and the BSE.
Lenskart Solutions shares listed on the NSE at Rs 395 per share with a discount of 1.74 per cent against the issue price of Rs 402 per share. On the other hand, the eyewear retailer’s shares listed at Rs 390 apiece with a discount of 2.98 per cent on the BSE.
Lenskart IPO Listing Price
Following the D-street debut of Lenskart’s shares, retail investors would have made a loss of Rs 259. Soon after the eyewear retailer’s shares listed on the exchange 5.16 lakh shares of Lenskart Solutions Ltd changed hands on the BSE and the total market capitalisation of the company stood at Rs 67,659.94 crore.
Lenskart Solutions IPO: Details
Lenskart Solutions Ltd raised Rs 7,278.76 crore through its public issue. The eyewear retailer’s public issue consisted of a combination of a fresh issue of 53.5 million shares aggregating to Rs 2,150.74 crore and an offer for sale of 127.6 million shares aggregating to Rs 5,128.02 crores.
The minimum lot size to apply for the issue was fixed at 1 lot or 37 shares for the retail category. Retail investors who bid at the cut-off price would have made a minimum investment of Rs 14,874.
Following the successful listing of the company's shares, the promoters and co-founders of the company Peyush Bansal, Neha Bansal, Amit Chaudhary and Sumeet Kapahi reduced their shareholding in the company from 19.85 per cent prior to the issue to 17.52 per cent.
Lenskart IPO: Subscription
Lenskart Solutions IPO saw robust demand in its three-day subscription window. Lenskart Solutions IPO was booked 28.26 times across investor categories. Over 2818.8 million shares of Lenskart Solutions were bid for against the 99.76 million shares offered for subscription.
In the three-day bidding window, qualified institutional bidders drove the demand for the public issue. QIBs booked their quota 40.35 times. On the other hand, non-institutional investors and retail individual investors booked their quota 18.23 times and 7.54 times respectively. Employees of Lenskart Solutions Ltd subscribed their quota 4.96 times in the three-day bidding window.
Lenskart Solutions IPO: Objective
Lenskart Solutions Ltd plans to use the proceeds of the public issue for funding the capital expenditure requirements of the company such as the setting up of co-owned and co-operated stores in India and for making payments for lease or license agreements for the same. A portion of the proceeds will also be invested in technology and cloud infrastructure.
The company also seeks to utilise the funds for brand marketing and business promotion expenses for enhancing brand awareness and funding inorganic acquisitions and general corporate purposes.
Lenskart Solutions: Business Model
Lenskart Solutions Ltd deploys a vertically integrated, omnichannel business model which combines a strong online presence with a network of physical stores to offer eyewear directly to the consumer. The company generates revenue via sale of eyewear products such as prescription glasses, sunglasses, and contact lenses. The company also generates revenue from subscription fees, franchise fees and via its revenue sharing.
Lenskart Solutions: Peers
Lenskart Solutions Ltd competes with online and omnichannel eyewear retailers, both domestic and international. The company also competes with traditional brick-and-mortar opticians and large fashion and accessory brands that have their own eyewear collections. Some of the key competitors of the company include Titan Eye+, GKB Opticals, Coolwinks, EyeMyEye and ClearDekho.
