Rentomojo's Rs 1,256-crore IPO has reached a 1.83x subscription rate by the end of day two. While grey market activity suggests a 35% listing premium, investors are also weighing the company's high reliance on the Offer for Sale and reported legal challenges.
The initial public offering (IPO) of Rentomojo continued to attract interest on its second day, with total subscription reaching 1.83 times the shares on offer as of September 10, 2026. The issue, which opened for public bidding on September 9 and will close on September 11, has seen notable participation from non-institutional and retail investors.
The company is looking to raise Rs 1,255.57 crore through this public issue, which is priced in a range of Rs 384 to Rs 404 per equity share. A significant portion of this total, Rs 1,105.57 crore, comes from an Offer for Sale (OFS), where existing shareholders sell their stakes. Only Rs 150 crore is a fresh issue of shares, meaning the company will receive a relatively small portion of the total money raised to fund its actual operations.
Rentomojo has outlined plans to use the Rs 150 crore fresh proceeds primarily to reduce debt, with Rs 70 crore earmarked for loan repayment, and Rs 42.50 crore allocated for lease rental payments. The remaining funds are intended for general corporate purposes. For investors, the reliance on the OFS structure is a point to consider, as it means less capital is going directly into expanding the company's core infrastructure compared to a purely fresh issue.
Financial performance highlights for the fiscal year ending March 2026 show strong growth, with annual profits rising by 142% to Rs 104.2 crore and revenue increasing by 45.5% to Rs 387 crore. The anchor book, which preceded the public offering, saw participation from global investors including BlackRock and Goldman Sachs, reflecting institutional confidence in the company's business model. Current grey market trends indicate an unofficial premium of approximately 35%, with shares trading at roughly Rs 135 to Rs 143 above the upper price band. It is important to remember that grey market premiums are speculative and do not guarantee listing day performance.
Beyond the financials, investors are monitoring certain risks that could affect the company’s future. These include reported legal challenges, such as a petition from a co-founder questioning the validity of certain stake sales, and management disputes. Additionally, Rentomojo operates in a capital-intensive sector that requires constant investment in rental inventory and logistics. Operational success depends heavily on the company's ability to manage asset refurbishment, logistics, and potential customer churn efficiently.
The final day of bidding will be crucial for determining the total subscription level and the strength of investor demand before the stock lists on the NSE and BSE, which is expected to occur on September 17, 2026.