💡 Overview & Quick Summary
Rentomojo Limited IPO Summary: Rentomojo Limited is launching an Initial Public Offering (IPO) of ₹1,255.57 Crore (Fresh Issue: ₹150.00 Cr; Offer for Sale: ₹1,105.57 Cr for 3,10,80,978 equity shares of face value ₹1 each) priced in a band of ₹384 to ₹404 per share, open for subscription from September 9 to September 11, 2026. The company operates a technology-driven, full-stack D2C online rental and subscription platform for furniture and appliances with 253,825 live subscribers and 851,184 live items across 29 cities as of March 31, 2026. Proceeds from the fresh issue will primarily fund debt repayment (₹70 Cr) and lease rentals (₹42.50 Cr). Sushil Finance observes that while Rentomojo has demonstrated strong financial growth (FY26 Total Income up 44.9% to ₹3,940.89 Cr, PAT up 142.0% to ₹1,042.99 Cr, RONW of 43.51%), these fundamentals appear substantially priced in at ~40x FY2026 diluted earnings at the upper band. Due to the demanding valuation, large OFS component (₹1,105.57 Cr), and the need to sustain exceptionally high growth, the margin of safety appears limited; hence, Sushil Finance prefers to wait for a more attractive valuation or greater evidence of sustainable earnings growth. Risk oriented investors can apply for listing gains.
1. IPO Overview
Rentomojo Limited has announced its Initial Public Offering details. The issue opens for subscription on Sep 9, 2026, and closes on Sep 11, 2026. The price band has been fixed at ₹384 to 404 Per Share with a face value of ₹1/- per share. The total public offer comprises 3,10,80,978 equity shares aggregating up to ₹1,255.57 crore.
| Issue Parameter |
Details |
| Price Band |
₹384 to 404 Per Share |
| Issue Opens on |
Sep 9, 2026 |
| Issue Closes on |
Sep 11, 2026 |
| Lot Size |
37 Shares & in Multiples thereafter |
| Issue Size |
₹1,255.57 Cr. |
| No of Shares |
3,10,80,978 |
| Face Value |
₹1/- |
| Listing |
BSE & NSE |
| Lead Managers |
Motilal Oswal Investment Advisors Ltd., Axis Capital Ltd., IIFL Capital Services Ltd. |
| Registrar |
Kfin Technologies Ltd |
2. Key IPO Details
The total public issue comprises a fresh issuance of shares and an Offer for Sale (OFS) by existing shareholders. The offer structure and category reservations across Qualified Institutional Buyers (QIB), Non-Institutional Investors / High Net-Worth Individuals (HNI), and Retail Individual Investors are outlined below:
Offer Structure
| Issuance |
in Cr. |
| Fresh Issue |
150.00 |
| Offer for Sale |
1,105.57 |
| Total |
1,255.57 |
Issue Breakup
| Reservation for |
% of Issue |
in Cr. (at upper band) |
| QIB |
50% |
627.79 |
| HNI |
15% |
188.34 |
| RETAIL |
35% |
439.45 |
| TOTAL |
100% |
1,255.57 |
3. Company Overview
Rentomojo operates a technology-driven, full-stack direct-to-consumer online rental and subscription platform for furniture and appliances in India.
The Company provides consumers access to products such as beds, mattresses, sofas, wardrobes, televisions, refrigerators, washing machines and water purifiers through flexible, recurring subscription plans, reducing the need for large upfront purchases and long-term ownership commitments.
Key operational characteristics include:
- Subscribers & Live Assets: As of March 31, 2026, Rentomojo had 253,825 live subscribers across 29 cities, supported by 851,184 live furniture and appliance items.
- Integrated Asset Lifecycle: Its business model extends beyond simply renting products, with an integrated asset lifecycle covering category management, design, procurement, refurbishment, servicing, reverse logistics and multi-cycle redeployment. This enables the Company to reuse assets across multiple subscriber cohorts and improve utilisation over their economic life.
- Omni-channel Presence: Rentomojo operates through an omni-channel model comprising its online platform and 82 experience stores.
- Logistics Infrastructure: Infrastructure includes 20 warehouses covering approximately 538,933 sq. ft. across 29 cities.
4. Objects of the Issue
The Company proposes to utilise the Rs. 150 crore Fresh Issue proceeds primarily towards:
- Repayment / prepayment of borrowings: Repayment/prepayment of certain outstanding borrowings and accrued interest amounting to Rs. 70 crore.
- Lease rentals / licence fees: Payment of lease rentals/licence fees for its warehouses and experience stores amounting to Rs. 42.50 crore.
- General Corporate Purposes: The balance being utilised towards general corporate purposes.
The Company will not receive any proceeds from the Rs. 1,105.57 crore Offer for Sale, which will accrue to the selling shareholders after applicable expenses and taxes.
5. Key Highlights
- Market-leading rental platform: Rentomojo had approximately 42%-47% share of organised home furniture and appliance rental subscription revenue in FY2025 and over 50% of live subscribers in the broader organised market, excluding water purifiers.
- Large and recurring subscriber base: The Company had 253,825 live subscribers across 29 cities as of March 31, 2026, with a repeat rate of 50.41%.
- Strong asset utilisation and lifecycle management: Rentomojo operates a multi-cycle asset model supported by refurbishment, reverse logistics and redeployment, with FY2026 occupancy at 83.34%.
- Technology and operational differentiation: Its proprietary ticketing technology and asset-intelligence systems support subscription management, procurement, refurbishment planning and logistics optimisation, while the business involves 11 consumer touchpoints across the subscription lifecycle.
- Consistent profitability with improving returns: Demonstrated robust top-line and bottom-line growth with expanding returns on net worth.
6. Brief Financial Performance & Metrics
**Not Annualized
| Particulars |
FY2024 |
FY2025 |
FY2026 |
| Total Income |
1,957.97 |
2,719.61 |
3,940.89 |
| Total Expenditure |
1,733.85 |
2,288.55 |
3,238.54 |
| EBITDA |
781.52 |
1,184.39 |
1,634.62 |
| Profit Before Tax |
224.12 |
431.06 |
676.56 |
| Profit After Tax |
224.12 |
431.06 |
1,042.99 |
| E.P.S. (Diluted) (Rs.) |
2.45 |
4.18 |
10.10 |
| P/E (Diluted)* |
164.90x |
96.65x |
40.00x |
| RONW/ROE (%) |
27.70% |
26.67% |
43.51% |
7. IPO Timeline & Payment Charts
Indicative Time Table
| Tentative Events |
Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
15/9/2026 |
| Initiation of refunds/unblocking ASBA Fund |
16/9/2026 |
| Credit of Equity Shares to demat accounts of Allottees |
16/9/2026 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
17/9/2026 |
PRICE CHART (@404) (Retail Category)
| LOT SIZE |
Amount (Rs.) |
| 37 | 14,948 |
| 74 | 29,896 |
| 111 | 44,844 |
| 148 | 59,792 |
| 185 | 74,740 |
| 222 | 89,688 |
| 259 | 1,04,636 |
| 296 | 1,19,584 |
| 333 | 1,34,532 |
| 370 | 1,49,480 |
| 407 | 1,64,428 |
| 444 | 1,79,376 |
| 481 | 1,94,324 |
HNI Payment Chart
| Category |
No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
518 |
2,09,272 |
| Big HNI |
2,479 |
10,01,516 |
8. Our View / Recommendation
Analyst Recommendation & View
Sushil Finance Research Stance
Rentomojo has demonstrated strong financial improvement, with Total Income growing 38.9% in FY2025 and 44.9% in FY2026, while PAT increased 92.3% and 142.0%, respectively, driving diluted EPS from Rs. 4.18 to Rs. 10.10 and improving RONW to 43.51%.
However, these strong fundamentals appear to be substantially reflected in the IPO valuation, with the issue priced at around 40x FY2026 diluted earnings at the upper band.
Further, the issue is predominantly an OFS, with approximately Rs. 1,105.57 crore out of the Rs. 1,255.57 crore issue being offered by existing shareholders, while only Rs. 150 crore will accrue to the company.
Given the demanding valuation, large OFS component and the need to sustain the exceptionally high earnings growth seen in FY2026, the margin of safety appears limited despite the company's strong growth and profitability. Therefore we would prefer to wait for a more attractive valuation or greater evidence of sustainable earnings growth.
Risk oriented investors can apply for listing gains.
9. Frequently Asked Questions (FAQs)
Q1. What is the business model of Rentomojo?
Rentomojo operates a technology-driven, full-stack direct-to-consumer online rental and subscription platform for furniture and appliances in India. It provides consumers access to products like beds, mattresses, sofas, wardrobes, TVs, refrigerators, washing machines, and water purifiers through flexible recurring subscription plans.
Q2. What is the total issue size and fresh issue component of Rentomojo IPO?
The total issue size is ₹1,255.57 crore (3,10,80,978 shares), comprising a Fresh Issue of ₹150.00 crore and an Offer for Sale (OFS) of ₹1,105.57 crore.
Q3. How will Rentomojo utilize the proceeds from the Fresh Issue?
The proceeds will be primarily utilized towards repayment/prepayment of certain outstanding borrowings and accrued interest amounting to ₹70 crore, payment of lease rentals/licence fees for its warehouses and experience stores amounting to ₹42.50 crore, and general corporate purposes.
Q4. What is the price band and minimum investment for retail investors?
The price band is ₹384 to ₹404 per share. The minimum bid lot is 37 shares, requiring a minimum retail investment of ₹14,948 at the upper price band.
Q5. What is Sushil Finance's view and recommendation on Rentomojo IPO?
Sushil Finance notes that Rentomojo has demonstrated strong financial performance with FY26 PAT increasing 142.0% and RONW reaching 43.51%. However, with valuation at around 40x FY2026 diluted earnings at the upper band and a large OFS component of ₹1,105.57 crore, the margin of safety appears limited. Sushil Finance prefers to wait for a more attractive valuation or greater evidence of sustainable earnings growth.
10. Red Herring Prospectus (RHP) Reference
11. Disclaimer
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
