SBI Mutual Fund invests Rs 100 cr in Lenskart in pre-IPO round

SBI Mutual Fund has invested Rs 100 crore in Lenskart ahead of its Rs 7,278-crore IPO opening October 31. The pre-IPO deal slightly reduces promoter Neha Bansal’s stake, adding to recent investments as the eyewear firm prepares for a November 10 market debut

New Delhi: SBI Mutual Fund has invested Rs 100 crore in eyewear retailer Lenskart Solutions in a pre-IPO (initial public offering) funding round.

As part of the transaction, Neha Bansal, one of the promoters, transferred 24.87 lakh equity shares at Rs 402 apiece to SBI Optimal Equity Fund (AIF) and SBI Emergent Fund AIF, Lenskart said in a public announcement on Wednesday.

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After the transaction, Bansal’s stake in the eyewear firm would come down to 7.46 per cent from 7.61 per cent earlier.

Last week, Radhakishan Damani, founder of Avenue Supermarts (DMart), invested around Rs 90 crore in Lenskart through a pre-IPO transaction. Damani picked up shares from Nehal Bansal, the sister of founder and CEO Peyush Bansal.

The share sale does not form part of the IPO’s Offer-for-Sale.

The latest investment comes ahead of Lenskart’s Rs 7,278 crore initial share-sale, which is scheduled to open for public subscription on October 31.

The company has fixed a price band of Rs 382 to Rs 402 per share for its IPO, giving it 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 utilise the proceeds from the IPO for various strategic initiatives, including capital expenditure for setting up new company-operated, company-owned (CoCo) stores in India; payments related to lease, rent, and license 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.

The company, one of India’s largest omni-channel eyewear retailers, offers a wide range of affordable and fashionable prescription eyeglasses, sunglasses, and contact lenses through its online platform and extensive 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. Over the years, it has evolved into one of the country’s most prominent consumer brands in eyewear.

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