Summary of this article
Rentomojo IPO opens September 9, with a Rs 384-404 price band
The company aims to raise Rs 1,255.57 crore through the IPO
Most of the issue is an offer for sale by existing shareholders
Rentomojo Limited, a furniture and appliance rental platform, will open its initial public offering (IPO) for subscription on September 9 and close it on September 11. The book-built issue aims to raise Rs 1,255.57 crore, consisting of a fresh issue worth Rs 150 crore and an offer for sale worth Rs 1,105.57 crore from existing shareholders.
Rentomojo IPO's price band has been fixed at Rs 384 to Rs 404 per share. Retail investors need to bid for a minimum lot of 37 shares, which comes to Rs 14,948 at the upper end of the band. The shares are expected to list on the BSE and NSE on September 17, with allotment scheduled for September 15.
The fresh issue consists of 3.72 million shares, while the offer for sale accounts for 27.37 million shares, taking the total issue size to 31.08 million shares. Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services are managing the offer, and Kfin Technologies is the registrar. Up to half the net offer has been set aside for qualified institutional buyers, while retail investors and non-institutional investors are guaranteed at least 35 per cent and 15 per cent, respectively.
Out of the fresh issue proceeds, Rs 70 crore is meant for repaying or prepaying borrowings and Rs 42.50 crore for lease rental and licence fee payments on warehouses and experience stores. What remains has been kept for general corporate purposes.
Rentomojo’s Business
Rentomojo, incorporated in 2012, runs a subscription model that lets customers rent furniture, mattresses, refrigerators, washing machines, televisions and water purifiers rather than buy them outright. As of March 31, 2026, the company had about 851,184 live items deployed and 253,825 live subscribers across 29 cities. It runs 82 experience stores in addition to its online platform, and operates 20 warehouses covering close to 538,933 square feet.
The company has developed a private label range in partnership with Dixon Technologies for refrigerators and washing machines, and has its own branded water purifiers. It reported an average delivery turnaround time of 2.35 days in FY26, with an asset occupancy rate of 83.34 per cent. The workforce as of March 2026 stood at 835 permanent employees and 1,772 contractual staff.
Rentomojo’s Financial Performance
Rentomojo's revenue has grown quickly over the past three years. Total income stood at Rs 394.09 crore in FY26, up from Rs 271.96 crore in FY25 and Rs 195.80 crore in FY24. Profit after tax (PAT) came in at Rs 104.30 crore in FY26, against Rs 43.11 crore in FY25 and Rs 22.41 crore in FY24.
The furniture and appliance rental platform’s debt rose from Rs 147.22 crore in FY24 to Rs 187.59 crore in FY26. However, its debt-to-equity ratio improved to 0.63 in FY26 from 0.84 in FY25, as net worth grew faster than debt.
The company’s total assets increased to Rs 641.12 crore in FY26 from Rs 366.20 crore in FY24, while net worth more than doubled to Rs 295.81 crore from Rs 139.61 crore over the same period. Reserves and surplus also rose to Rs 291.71 crore.
Earnings before interest, tax, depreciation and amortisation (Ebitda) margin stood at 41.48 per cent in FY26, easing slightly from 43.55 per cent in FY25. PAT margin improved to 26.95 per cent in FY26 from 16.21 per cent in FY25. Return on equity climbed to 43.51 per cent in FY26 from 26.67 per cent in FY25, and the debt to equity ratio fell to 0.63 in FY26 from 0.84 in FY25, suggesting the company is converting growth into profit while leaning less on borrowed capital.
Rentomojo’s Valuation
At the top of the price band, Rentomojo is valued at a price-to-earnings (P-E) multiple of about 40.73 times its post-issue earnings per share of Rs 9.92. Its post-issue market capitalisation is Rs 4,246 crore. The price to book value (P-B) stands at 14.10 times, sharply down from 22.68 times a year earlier, a change driven largely by the rise in net worth following recent profit growth. There is no closely comparable listed company running a similar furniture and appliance rental business in India, so investors have little by way of a direct peer set to benchmark these numbers against.
Rentomojo IPO GMP Today
Rentomojo shares are commanding a grey market premium (GMP) of around Rs 142, according to unofficial market trackers, as of September 7. At this premium, the shares could list at around Rs 546, translating into a gain of nearly 35 per cent over the issue price.
However, investors should not take the GMP as a guarantee of listing gains. Grey market trades are unofficial and unregulated, and the premium can change significantly before the shares make their debut. It is best viewed as an indicator of investor sentiment rather than a reliable estimate of the listing price.
Should Investors Apply
Rentomojo enters the market with three consecutive years of profit growth, improving margins and a declining debt burden. However, the offer-for-sale component is more than seven times the size of the fresh issue. This means a large part of the IPO proceeds will go to existing shareholders rather than the company, making the issue more of a partial exit for early investors than a fundraising exercise for growth.
The valuation is another concern. At more than 40 times its post-issue earnings, the company is not coming cheap, especially for a business that requires significant spending on warehousing and refurbishment of assets. The key question for investors will be whether Rentomojo can continue adding subscribers and improve asset utilisation without putting pressure on margins.
Investors considering the IPO should therefore look beyond the grey market premium and assess the company’s growth prospects against the valuation. The risk factors outlined in the prospectus also warrant a close look before making an investment decision.
