Lenskart CEO Peyush Bansal Prioritizes Customer Value Over IPO Valuation Concerns

Bansal emphasized his focus remains on customer service rather than market valuation. (File)

New Delhi:

Peyush Bansal, founder and CEO of Lenskart, has dismissed concerns regarding the eyewear brand's high valuation ahead of its forthcoming initial public offering (IPO). The entrepreneur emphasized that his primary responsibility is serving customers, not determining market valuations.

"My role is justifying value for the customer. My job is making the best quality spectacles daily at the lowest possible price," Bansal explained during an interview with NDTV Profit.

When questioned about Lenskart's valuation being considerably higher than global competitors based on metrics like price-to-earnings and price-to-EBITDA, Bansal clarified that setting valuations isn't an entrepreneur's responsibility. He noted that valuation determination primarily falls to financial advisors and investors.

"Determining valuation is not our responsibility," he stated, adding that he understood valuation concepts "less" than others in the financial ecosystem.

"Mereko toh justify karna hi nahi hota hai..." Peyush Bansal responded when questioned about Lenskart's high valuation. @Vishwanath4389 Listen in 🔊 pic.twitter.com/IxPm66KxAc

Lenskart Solutions Ltd will launch its IPO on October 31. The public offering, valued at Rs 7,278 crore, comprises a fresh issue of 53.5 million equity shares worth Rs 2,150 crore and an offer for sale (OFS) of 127.6 million shares amounting to Rs 5,128.02 crore.

The three-day bidding period concludes on November 4. The basis of allotment is anticipated to be finalized on November 6, with the stock expected to list on NSE and BSE on November 10.

The company seeks a higher valuation than other eyewear and retail brands, including Nykaa, based on its strong sales growth and rapid expansion as a consumer technology company.

Jayasankar Venkataraman, managing director at Kotak Mahindra Capital, which is advising on the listing, supported Bansal's perspective and explained how institutional investors are evaluating the company's valuation.

He suggested the market should await the announcement of anchor investors, expected later this week. "You'll find all the marquee DIIs and FIIs really participating in the book," Venkataraman remarked.

He further noted that for consumer technology companies like Lenskart, growth and scalability are the paramount factors. Lenskart has experienced rapid growth in both Indian and international markets while demonstrating strong operational efficiency, he concluded.