Rentomojo IPO: Know price band, lot size, investments, GMP and risk factors here

The ₹1,256 crore Initial Public Offer of Rentomojo Ltd. will open for subscription on Wednesday, September 9, making it one among the six IPOs that will open for subscription simultaneously.

Rentomojo's IPO will remain open for subscription until Friday, September 11.

All About Rentomojo's IPO

Rentomojo's ₹1,256 crore IPO is a combination of a fresh issue of shares worth ₹150 crore and an Offer For Sale for 2.73 crore equity shares worth ₹1,105.57 crore.

The IPO is priced between ₹384 to ₹404 per share. The face value of each share is ₹1 each.

For a retail investor, the size of one lot will be 37 shares, which will entail a minimum investment of ₹14,948 per lot. 35% of the offer is reserved for retail investors.

50% of the issue is reserved for institutional investors (QIB) and the rest for Non-Institutional Bidders (NII).

Eligible Employees will also have a ₹20 per share discount while bidding for the issue. 52,083 shares are reserved for employees.

The company is aiming for a market cap of ₹4,206 crore at the upper end of the price band.

Motilal Oswal Investment Advisor, Axis Capital, ICICI Securities, IIFL Capital and Nuvama Wealth Management are the Book Running Lead Managers of the IPO.

What Does Rentomojo Do?

Rentomojo is a direct-to-consumer online rental and subscription platform for furniture, appliances and consumer durable products. Instead of an outright purchase, customers can either rent, or have a monthly subscription for items such as beds, mattresses, wardrobes, sofas, TVs, Washing Machines, and even refrigerators and water purifiers.

Delivery, installation, maintenance and relocation is also part of the services that the company provides.

As of March 31, 2026, Rentomojo had 2.53 lakh live subscribers across 29 cities, along with 8.51 lakh live items in its portfolio. Its omni-channel model includes an online ordering platform, along with 82 experience stores.

The company also has 20 warehouses with an approximate area of 5.4 lakh square feet.

How Has Rentomojo's Financial Performance Been?

Over financial year 2024 to 2026, Rentomojo's revenue from operations have grown at a Compounded Annual Growth Rate (CAGR) of 41.7% from ₹192.7 crore to ₹387 crore.

The company's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹163.4 crore in financial year 2026 from ₹78.1 crore in financial year 2024.

It must be noted that the financial year 2026 Profit After Tax was boosted by a one-off deferred tax credit of ₹36.64 crore, which led to the ₹104.3 crore figure from ₹43.1 crore in financial year 2025.

The company spent ₹176 crore in Property, Plant & Equipment (PP&E) purchases in financial year 2026, compared to ₹138 crore spent in the previous year. As of date, the combined current and non-current borrowings, along with lease liabilities against its warehouse and store network stood at ₹188 crore.

What Are The Risk Factors Flagged In The Rentomojo IPO?

Among the key risk factors highlighted by Rentomojo in its RHP, include revenue concentration, where 98% of its topline comes from the renting business and any shift / downturn there, could impact its financial performance.

The company's growth is also tied to its ability in adding more subscribers. A slowdown here could hurt revenues and unit economics.

Rentomojo's business model is based on having a high occupancy level across the rental asset base, and a decline here could impact the company's RoCE, and operating cash flow.

Subscriber payment delays, defaults, premature contract cancellations that impact cash flow and increase receivables are also part of the company's risk factors, along with the need for heavy working capital to fund the rental asset base, dependance on third-party vendors, and intensifying competition.

Should You Subscribe Or Avoid The Rentomojo IPO?

According to SBI Securities, the financial performance of Rentomojo reflects a healthy operating leverage and improving profitability. It added that Rentomojo also benefits from rising urban mobility, a large share of unfurnished rental housing and an increasing preference for flexible, asset-light consumption.

"However, the business remains capital intensive and exposed to subscriber defaults, rental demand, geographic concentration and execution risks associated with maintaining asset utilization and service quality," SBI Securities wrote in its note.

Despite that, the brokerage has recommended a SUBSCRIBE to the IPO considering its market leadership, strong growth, improving profitability and favourable industry opportunity.

What Is The Rentomojo GMP Indicating?

On the day of the opening of the IPO, Rentomojo shares in the Grey Market are commanding a premium of ₹125 per share, which implies a premium of 31% compared to its issue price. However, it must be noted that the GMP rates are speculative in nature and the actual listing price can differ from what the GMP is indicating.