RentoMojo’s ₹1,256 crore IPO is open for subscription from September 9 to September 11, 2026, in a price band of ₹384–₹404. While the company shows strong growth in its rental business, investors should carefully weigh the potential listing gains against risks like capital intensity and an ongoing legal dispute.
RentoMojo’s initial public offering (IPO) opened for public subscription on September 9, 2026, and will remain open until September 11, 2026. The company is looking to raise ₹1,255.57 crore through this issue, which consists of a fresh equity sale of ₹150 crore and an offer for sale (OFS) of ₹1,105.57 crore by existing shareholders. The price band for the shares has been set between ₹384 and ₹404. The stock is tentatively scheduled to list on the stock exchanges on September 17, 2026.
Business Model and Financial Performance
RentoMojo operates a subscription-based model for furniture and appliance rentals, targeting urban consumers. The company has demonstrated significant growth, with operating revenue of approximately ₹387 crore in FY26, marking a 45% increase compared to the previous year. Profit after tax (PAT) also saw a sharp rise to around ₹104 crore, up roughly 142%. This growth is supported by a subscriber base of over 253,000 active users as of March 2026.
The business model relies on an "asset-heavy" approach, where the company manages the entire product lifecycle—from procurement and initial rental to refurbishment and re-rental. By controlling the refurbishment process, the company aims to extend the life of its assets. To support its scale, the company has partnered with contract manufacturers like Dixon Technologies for private-label electronics, aiming to improve its procurement margins and quality control.
Market Sentiment and Anchor Participation
Ahead of the public opening, the company raised ₹376 crore from 41 anchor investors, including major institutions like Goldman Sachs and BlackRock, at the upper price band of ₹404 per share. In the unlisted market, the grey market premium (GMP) has been reported at approximately ₹134, which suggests a potential listing gain of around 33% based on current sentiment. However, GMP is a volatile indicator and may not always reflect the long-term price trajectory.
Risks and Monitorables
While the financial growth appears strong, investors should consider several material risks. A significant point of concern is a pending legal matter before the National Company Law Tribunal (NCLT). A co-founder has filed a petition seeking to invalidate a past stake sale and remove the current promoter from the board. The outcome of this legal dispute remains uncertain and could potentially impact management stability or corporate governance perceptions.
Additionally, the business is highly capital-intensive. Because the company must continuously invest in physical assets to maintain its rental inventory, cash flow can remain under pressure even as the company scales. Expansion into Tier-2 markets like Indore and Lucknow presents further operational challenges. Maintaining high occupancy rates and efficient logistics in these newer territories will be critical for sustaining profit margins. Investors should keep a close watch on the final subscription numbers, the resolution of the legal dispute, and the company’s ability to manage its heavy capital spending as it expands its footprint.