Rentomojo's ₹1,255.57 crore IPO is open for subscription until September 11, 2026. Brokerage firm Anand Rathi has recommended a 'Subscribe for Long Term' rating, citing the company's D2C market leadership. Investors should note the high offer-for-sale component and the capital-intensive nature of the rental business.
Rentomojo Limited, a prominent D2C platform providing furniture and appliance rentals, has launched its initial public offering. The issue, which opened for subscription on September 9, 2026, aims to raise ₹1,255.57 crore. Brokerage firm Anand Rathi has assigned a 'Subscribe for Long Term' rating to the IPO, highlighting the company's established leadership in the rental and subscription-based consumption segment. The IPO is priced in the range of ₹384 to ₹404 per share and remains open for subscription until September 11, 2026.
As of March 31, 2026, the company maintained a significant footprint with 253,825 active subscribers across 29 cities. Its business model relies on an integrated asset-lifecycle approach, managing the end-to-end process from procurement and design to refurbishment and reverse logistics. This strategy aims to support efficient asset redeployment, which is crucial for maintaining margins in a sector that requires constant inventory upkeep.
The company reported financial growth in recent years. Revenue from operations rose to ₹394.09 crore in FY26, up from ₹271.96 crore in FY25. During the same period, the company's Profit After Tax (PAT) increased to ₹104.30 crore from ₹43.11 crore. These figures suggest an expanding scale of operations as the company deepens its presence in urban markets.
Despite the growth, potential investors should review several operational risks. A significant portion of the IPO proceeds, approximately ₹1,105.57 crore, is an Offer for Sale (OFS), meaning nearly 88% of the funds raised will go to selling shareholders rather than into the company’s own coffers. The business is also capital-intensive, requiring consistent spending to procure and maintain rental inventory. Furthermore, while the company has grown its profits, its EBITDA margins experienced a slight contraction, moving from 43.55% in FY25 to 41.48% in FY26. This trend in margins, alongside risks related to asset obsolescence and potential subscriber defaults, is a factor for investors to monitor.
At the upper end of the price band, the post-issue P/E ratio stands at approximately 40.73x. Investors weighing this opportunity may want to consider the company's ability to navigate these operational challenges as it scales further. The IPO is tentatively scheduled to list on the stock exchanges on September 17, 2026.