Lenskart IPO Fully Subscribed on Day 1, Drawing Strong Investor Demand

Lenskart Solutions Ltd has successfully seen its Rs 7,278 crore Initial Public Offering (IPO) fully subscribed on the very first day of bidding. Exchange data shows robust demand, with the issue being subscribed 1.06 times by Friday afternoon. The Qualified Institutional Buyers (QIBs) category saw strong interest, subscribing 1.42 times, while Retail Individual Investors (RIIs) subscribed 1.12 times their allocated portion. The IPO comprises a fresh issue of Rs 2,150 crore to fund business expansion and an offer for sale (OFS) of Rs 5,128 crore, where promoters and existing investors will offload their shares. The price band for the shares is set between Rs 382 and Rs 402. Lenskart had previously raised Rs 3,268 crore from anchor investors by allotting shares at Rs 402 each. The company intends to utilize the funds raised for opening new company-owned stores, lease payments, technological upgrades, cloud infrastructure, brand marketing, potential acquisitions, and general corporate needs. Lenskart, established in 2008, has grown from an online platform to a multi-city retailer with international presence.

Impact This strong subscription indicates high investor confidence in Lenskart and the eyewear retail sector in India, which could positively influence the performance of the stock upon listing. It also signals a healthy appetite for IPOs in the Indian market. Rating: 8/10.

Difficult Terms: IPO (Initial Public Offering): A company's first time selling its shares to the public to raise capital. Subscription: The process where investors apply for shares in an IPO; a subscription level indicates how many times the offered shares have been applied for. Qualified Institutional Buyers (QIBs): Large financial institutions such as mutual funds, foreign institutional investors, and pension funds. Retail Individual Investors (RIIs): Individual investors applying for shares worth less than Rs 2 lakh. Offer for Sale (OFS): A mechanism where existing shareholders of a company sell their shares to new investors, allowing them to exit or cash out. Anchor Investors: Large institutional investors who commit to buying a significant portion of shares before the IPO opens to the public, providing stability to the issue.