IPO a pit stop in a longer journey, have to create value for stakeholders: Lenskart CEO Peyush Bansal
Peyush Bansal, cofounder and chief executive of omnichannel eyewear retailer Lenskart, said listing the company is ticking one of the boxes in a long to-do list.
In a fireside chat with ET’s Samidha Sharma, Bansal thanked the investors as the initial public offering of Lenskart was fully subscribed on the very first day.
The Lenskart IPO was subscribed 1.12 times by the close of bidding on Friday, with bids for 11.2 crore shares against the almost 9.98 crore on offer. Institutional buyers, who usually apply on the last day of the IPO, led the demand, with their basket of shares subscribed 1.42 times. The retail portion was subscribed 1.3 times, while employees bids stood at 1.08 times their basket. High net-worth investors subscribed to only 41% of the shares reserved for them.
“I am really grateful and humbled by the faith Indian investors, mutual funds, FIIs, retail investors, and our own employees have shown in the company,” Bansal said. “As a consumer brand, we’re still very early in the journey of what we want to do. We truly care about every investor that comes in. IPO’s an important milestone, but it is a pitstop in a longer journey,” he said.
Valuation concerns
Investor enthusiasm for the Lenskart IPO comes in the backdrop of concern over the Rs 70,000 crore valuation the company is targeting with the issue. This is equal to the company asking for Rs 235–238 for every Re 1 it earns, which has led to a backlash on multiple forums.
Bansal said he is taking the criticism on Lenskart’s prospective valuation in a positive way. “Backlash means people care. It is a learning journey for us. This, coming right at the beginning of it (listing), is a blessing in disguise. The public cares about Lenskart, they care about the value we’ll create for them. As entrepreneurs, we need to make sure we work hard every day and create value for our stakeholders,” he added.
Also Read | ETtech Explainer: Inside Lenskart’s upcoming Rs 7,300-crore IPO
In a fireside chat with ET’s Samidha Sharma, Bansal thanked the investors as the initial public offering of Lenskart was fully subscribed on the very first day.
The Lenskart IPO was subscribed 1.12 times by the close of bidding on Friday, with bids for 11.2 crore shares against the almost 9.98 crore on offer. Institutional buyers, who usually apply on the last day of the IPO, led the demand, with their basket of shares subscribed 1.42 times. The retail portion was subscribed 1.3 times, while employees bids stood at 1.08 times their basket. High net-worth investors subscribed to only 41% of the shares reserved for them.
“I am really grateful and humbled by the faith Indian investors, mutual funds, FIIs, retail investors, and our own employees have shown in the company,” Bansal said. “As a consumer brand, we’re still very early in the journey of what we want to do. We truly care about every investor that comes in. IPO’s an important milestone, but it is a pitstop in a longer journey,” he said.
Valuation concerns
Investor enthusiasm for the Lenskart IPO comes in the backdrop of concern over the Rs 70,000 crore valuation the company is targeting with the issue. This is equal to the company asking for Rs 235–238 for every Re 1 it earns, which has led to a backlash on multiple forums.
Bansal said he is taking the criticism on Lenskart’s prospective valuation in a positive way. “Backlash means people care. It is a learning journey for us. This, coming right at the beginning of it (listing), is a blessing in disguise. The public cares about Lenskart, they care about the value we’ll create for them. As entrepreneurs, we need to make sure we work hard every day and create value for our stakeholders,” he added.
Also Read | ETtech Explainer: Inside Lenskart’s upcoming Rs 7,300-crore IPO
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