Rentomojo IPO Sails Through Day One With 1.5x Oversubscription on Broad Investor Demand

Bengaluru-headquartered furniture and appliance rental startup Rentomojo has witnessed solid market demand as its Rs 1,255.57 crore initial public offering (IPO) sailed past full subscription on the opening day of bidding, reaching approximately 1.5 times its offered book.

According to exchange data, the public issue received bids for over 3.08 crore equity shares against the 2.17 crore shares available for public subscription. The healthy response was driven primarily by non-institutional investors (NIIs), who booked their allocated quota 1.48 times, alongside retail individual investors (RIIs), who subscribed to 1.16 times their reserved portion.

Issue Structure and Key Details

The IPO, which opened on September 9 and closes on September 11, has been priced in a band of Rs 384 to Rs 404 per equity share with a face value of Re 1 each. Bidders can apply in minimum lots of 37 shares, requiring a minimum retail commitment of Rs 14,948 at the upper price boundary.

The issue combines a fresh issue and a significant secondary sale:

• Fresh Issue: Equity shares aggregating to Rs 150 crore.
• Offer for Sale (OFS): 2.74 crore shares valued at Rs 1,105.57 crore offloaded by early investors, including Accel India IV (Mauritius) and Edelweiss Discovery Fund.
• Anchor Allotment: The company raised Rs 376.07 crore from institutional anchor investors ahead of the issue opening.

Motilal Oswal Investment Advisors is acting as the book-running lead manager for the offering, while KFin Technologies serves as the registrar. The basis of allotment is scheduled to be finalized on September 15, with trading on the BSE and NSE tentatively slated to commence on September 17.

Utilization of Proceeds and Business Fundamentals

Founded by Geetansh Bamania, Rentomojo operates a full-stack, direct-to-consumer rental and subscription engine for home essentials. The platform commands an estimated 42% to 47% market share of the organized furniture and appliance rental industry in India, operating across 29 cities with 82 experience stores and over 2.53 lakh active subscribers.

Out of the Rs 150 crore in fresh proceeds, Rentomojo plans to deploy:

• Debt Reduction: Rs 70 crore towards full or partial prepayment/repayment of borrowings.
• Store and Warehouse Leases: Rs 42.50 crore to cover lease and license obligations for warehouses and retail experience stores.
• Corporate Outlays: The residual capital to fund general corporate objectives.

Financially, Rentomojo posted a 45.5% surge in revenue to Rs 387 crore for the financial year ended March 31, accompanied by a net profit of Rs 104.3 crore—up 142% year-on-year, aided in part by a deferred tax credit of Rs 36.6 crore. At the upper end of the price band, the company seeks an equity valuation of roughly Rs 4,200 crore ($444 million), translating to a post-issue price-to-earnings (P/E) multiple of around 39.4x to 40.7x on reported earnings.

Market Significance for the Startup Ecosystem

Rentomojo’s public debut is closely watched on Dalal Street as it marks the first public market listing of an Indian furniture and lifestyle rental enterprise. With no direct listed peers on domestic bourses, the issue sets an important valuation anchor and liquidity test for private competitors such as Furlenco and Cityfurnish, providing retail and institutional participants a blueprint for valuing circular subscription models in India.

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