LensKart IPO: Lenskart founder and CEO Piyush Bansal is going to earn a profit of about Rs 824 crore through the Initial Public Offering (IPO) of his company. This will be the biggest financial gain for Bansal so far. Actually, Piyush Bansal is selling about 2.05 crore shares of his company through the IPO of his company Lenskart.
The company has fixed the price of its shares between Rs 382 to Rs 402 per share. If this IPO is listed at the upper price band of Rs 402, Bansal will get a return of about 21 times on his investment. He had earlier purchased these shares at an average price of only Rs 18.6 per share. That means they will make a profit of more than 2,000% compared to their initial investment.
Even after the IPO, Bansal will retain his stake in the company. After listing, his stake in Lenskart will be around 8.78%.
Lenskart’s IPO opens for bidding from today, October 31, and will remain open for subscription till November 4. The company is planning to raise a total of Rs 7,278.02 crore through this IPO. Of this, Rs 2,150 crore will be raised by the company by issuing new shares, while 12.76 crore shares will be put up for sale by its existing shareholders.
Among the shareholders who are selling their stake, apart from Piyush Bansal, big investors like SoftBank’s SVF II Lightbulb (Cayman), Kedra Capital, ChrisCapital’s PI Opportunities Fund II, KKR’s MacRitchie Investments and Alpha Wave Ventures will also sell their stake.
In this IPO, 10% share is reserved for retail investors. Investors can buy a minimum lot of 37 shares for which they will have to make a minimum investment of Rs 14,874 at the upper price band. If this IPO is fully subscribed, the post-issue valuation of the company can reach approximately Rs 69,741 crore.
The company will use the money raised from the IPO to expand its business and invest in new technologies, while the OFS will provide a partial exit opportunity to existing investors.
Ahead of the IPO, SBI Mutual Fund had invested Rs 100 crore in Lenskart, taking the company’s valuation to around $7.7 billion. Apart from this, billionaire investor Radhakishan Damani had also bought shares worth Rs 90 crore in a pre-IPO deal. After the IPO, the promoters’ stake in the company will reduce from 19.9% to 17.7%.
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