IPO-bound Lenskart earmarks Rs 213 crore for brand marketing
Lenskart said the net procceds from the public issue will also be directed towards store expansion, tech infrastructure, and strategic acquisitions.
ADVERTISEMENT
IPO-bound Lenskart Solutions Limited has earmarked Rs over Rs 213 crore from its upcoming IPO proceeds specifically for brand marketing and business promotion expenses aimed at enhancing brand awareness, as per its Draft Red Herring Prospectus (DRHP).
Apart from the marketing, entrepreneur Peyush Bansal-led company plans to deploy the net proceeds towards multiple growth projects. This include: Rs 591 crore for lease and license-related expenditure, and for Company Owned, Company Operated (CoCo) stores in India; Rs 272 crore in capital expenditure for setting up new CoCo stores; Rs 320 crore towards unidentified inorganic acquisitions and general corporate purposes; Rs 213 crore into technology and cloud infrastructure investments.
The DRHP also mentions that the final deployment of funds under general corporate purposes and inorganic acquisitions will not exceed 35% of gross proceeds, subject to Offer pricing.
Lenskart is set to go public through a combination of a fresh issue and an offer for sale (OFS). The eyewear retailer plans to raise up to Rs 21,500 crore through the fresh issue of equity shares with a face value of Rs 2 each.
The offer for sale will include up to 32,288,941 equity shares, with company co-founder and promoter Bansal offering up to 20,488,978 shares.
