Rentomojo IPO day 2; GMP signals 35% potential listing gains. Should you subscribe?
Rentomojo is currently in the second day of its initial public offering, displaying an impressive grey market premium of thirty-five percent. Retail investors have eagerly subscribed, exceeding their quota by one point fifty-four times. The compan...
By Ritesh Presswala, ETMarkets.com |
ETMarkets.com
Rentomojo IPO has entered Day 2 of bidding, with investors still having time to place their bets before the three-day issue closes. Adding to the buzz, the stock is commanding a grey market premium (GMP) of around 35% over its issue price, signalling strong market expectations for a bumper listing.
The enthusiasm was evident on Day 1, when the IPO was subscribed 1.42 times overall against the 2.17 crore shares on offer. Retail investors were even more aggressive, with the portion reserved for Retail Individual Investors (RIIs) subscribed 1.54 times against 1.08 crore shares.
The Rs 1,255.57 crore IPO comes with a price band of Rs 384–Rs 404 per equity share. The issue opened on September 9, 2026, and will remain open for subscription until September 11, 2026.
The IPO comprises both a fresh issue and an offer for sale (OFS). The fresh issue involves 37.15 lakh equity shares worth Rs 150 crore, while the significantly larger OFS component consists of 2.73 crore equity shares valued at Rs 1,105.57 crore.
The shareholding structure and the relatively small fresh issue component are therefore key factors investors may want to keep in mind.
Following the IPO closure, the share allotment is expected to be finalised on September 15. The shares are proposed to be listed on both the National Stock Exchange (NSE) and BSE, with September 17, 2026 as the tentative listing date.
Retail investors can bid for a minimum of 37 shares, with subsequent bids required to be placed in multiples of 37. At the upper end of the price band, or Rs 404 per share, one lot will cost Rs 14,948.
Based on diluted earnings per share (EPS) for FY2026, Rentomojo is valued at a price-to-earnings (P/E) multiple of 38.02 times at the lower end of the price band and around 40 times at the upper end.
The company is offering a Rs 20-per-share discount to eligible employees bidding in the IPO. This discount will be adjusted against the applicable issue price.
Motilal Oswal Investment Advisors Ltd. is the book-running lead manager for the issue, while Kfin Technologies Ltd. is the registrar.
Rentomojo has raised Rs 376 crore from anchor investors ahead of its initial public offering. The company allotted 93 lakh shares to 41 anchor investors at Rs 404 per share. The anchor allocation price includes a face value of Rs 1 per share and a share premium of Rs 403 per share.
Among investor categories, Non-Institutional Investors (NIIs) led the demand, subscribing 2.46 times to their quota of 46.54 lakh shares.
Retail Individual Investors (RIIs) subscribed 1.54 times against the 1.08 crore shares reserved for them.
Meanwhile, Qualified Institutional Buyers (QIBs) subscribed 41% of their allocated portion of 62.05 lakh shares.
GMP Note: The grey market premium is an unofficial indicator of market sentiment and does not guarantee the actual listing price or returns. GMP can fluctuate before listing based on investor demand, broader market conditions and overall market sentiment.
The company manages the end-to-end asset lifecycle, including procurement, refurbishment, servicing, reverse logistics and redeployment, helping improve asset utilisation and capital efficiency.
Rentomojo has maintained occupancy levels above 80% in recent financial years. As of September 30, 2025, it had 728,773 live products and 227,511 subscribers across 22 cities, with offerings spanning furniture and appliances from brands such as Haier, Wakefit, Livpure and Duroflex, alongside its growing private-label portfolio.
The company follows an omnichannel model with 67 experience stores and 21 warehouses covering 444,486 sq. ft., supporting inventory management, fulfilment and asset lifecycle operations.
According to the brokerage, Rentomojo is India’s largest organised furniture and appliance rental platform, backed by a recurring subscription-based business model and a growing subscriber base. Its integrated operations across procurement, refurbishment, logistics and asset redeployment also help the company maximise the utilisation of its rental assets.
The company has delivered strong financial growth, with Revenue, EBITDA and Adjusted PAT growing at a CAGR of 41.7%, 45.5% and 118.4%, respectively, between FY24 and FY26. The brokerage believes the rising live subscriber base and unrecognised contracted revenue provide healthy revenue visibility, while strong asset occupancy and the ability to refurbish and redeploy products across multiple rental cycles support asset-level returns. Rentomojo is also positioned to benefit from broader structural trends, including increasing urban mobility, a growing share of unfurnished rental housing and rising consumer preference for flexible, asset-light consumption models.
However, SBI Securities has flagged several risks. The business remains capital intensive and is exposed to subscriber defaults, fluctuations in rental demand, geographic concentration and execution challenges related to maintaining asset utilisation and service quality. At the upper price band of Rs 404 per share, Rentomojo is valued at a post-issue P/E of 39.4x based on FY26 earnings.
Despite the relatively high valuation, SBI Securities believes the company’s market leadership, robust growth trajectory, improving profitability and favourable industry opportunity justify the premium. The brokerage has therefore assigned a “SUBSCRIBE” rating to the Rentomojo IPO.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The enthusiasm was evident on Day 1, when the IPO was subscribed 1.42 times overall against the 2.17 crore shares on offer. Retail investors were even more aggressive, with the portion reserved for Retail Individual Investors (RIIs) subscribed 1.54 times against 1.08 crore shares.
The Rs 1,255.57 crore IPO comes with a price band of Rs 384–Rs 404 per equity share. The issue opened on September 9, 2026, and will remain open for subscription until September 11, 2026.
The IPO comprises both a fresh issue and an offer for sale (OFS). The fresh issue involves 37.15 lakh equity shares worth Rs 150 crore, while the significantly larger OFS component consists of 2.73 crore equity shares valued at Rs 1,105.57 crore.
The shareholding structure and the relatively small fresh issue component are therefore key factors investors may want to keep in mind.
Following the IPO closure, the share allotment is expected to be finalised on September 15. The shares are proposed to be listed on both the National Stock Exchange (NSE) and BSE, with September 17, 2026 as the tentative listing date.
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Retail investors can bid for a minimum of 37 shares, with subsequent bids required to be placed in multiples of 37. At the upper end of the price band, or Rs 404 per share, one lot will cost Rs 14,948.
Based on diluted earnings per share (EPS) for FY2026, Rentomojo is valued at a price-to-earnings (P/E) multiple of 38.02 times at the lower end of the price band and around 40 times at the upper end.
The company is offering a Rs 20-per-share discount to eligible employees bidding in the IPO. This discount will be adjusted against the applicable issue price.
Motilal Oswal Investment Advisors Ltd. is the book-running lead manager for the issue, while Kfin Technologies Ltd. is the registrar.
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Rentomojo has raised Rs 376 crore from anchor investors ahead of its initial public offering. The company allotted 93 lakh shares to 41 anchor investors at Rs 404 per share. The anchor allocation price includes a face value of Rs 1 per share and a share premium of Rs 403 per share.
Rentomojo IPO Subscription Status
The Rentomojo IPO saw a strong response on Day 1, with the issue getting 1.42 times subscribed against the 2.17 crore shares on offer.ADVERTISEMENT
Among investor categories, Non-Institutional Investors (NIIs) led the demand, subscribing 2.46 times to their quota of 46.54 lakh shares.
Retail Individual Investors (RIIs) subscribed 1.54 times against the 1.08 crore shares reserved for them.
Meanwhile, Qualified Institutional Buyers (QIBs) subscribed 41% of their allocated portion of 62.05 lakh shares.
Rentomojo IPO GMP Today
The Rentomojo IPO continues to command a strong premium in the grey market. The Grey Market Premium (GMP) currently stands at Rs 143 per share, or around 35%, over the upper end of the IPO price band of Rs 404. At the current GMP, the estimated listing price is around Rs 547 per share.GMP Note: The grey market premium is an unofficial indicator of market sentiment and does not guarantee the actual listing price or returns. GMP can fluctuate before listing based on investor demand, broader market conditions and overall market sentiment.
Rentomojo IPO: Issue Objectives
The proceeds from the Rentomojo IPO will be used for several key corporate purposes. A portion of the funds will go towards the repayment or prepayment, either in full or in part, of certain outstanding borrowings, along with the accrued interest on these loans. The company also plans to use part of the IPO proceeds to pay lease rentals and licence fees for its warehouses and experience stores. The remaining funds will be utilised for general corporate purposes.About Rentomojo
Rentomojo is an India-based D2C rental and subscription platform offering flexible access to furniture and appliances without upfront ownership costs.The company manages the end-to-end asset lifecycle, including procurement, refurbishment, servicing, reverse logistics and redeployment, helping improve asset utilisation and capital efficiency.
Rentomojo has maintained occupancy levels above 80% in recent financial years. As of September 30, 2025, it had 728,773 live products and 227,511 subscribers across 22 cities, with offerings spanning furniture and appliances from brands such as Haier, Wakefit, Livpure and Duroflex, alongside its growing private-label portfolio.
The company follows an omnichannel model with 67 experience stores and 21 warehouses covering 444,486 sq. ft., supporting inventory management, fulfilment and asset lifecycle operations.
Should You Subscribe to the Rentomojo IPO?
SBI Securities has given the Rentomojo IPO a “Subscribe” rating, citing the company’s market leadership, strong growth, improving profitability and favourable long-term industry outlook.According to the brokerage, Rentomojo is India’s largest organised furniture and appliance rental platform, backed by a recurring subscription-based business model and a growing subscriber base. Its integrated operations across procurement, refurbishment, logistics and asset redeployment also help the company maximise the utilisation of its rental assets.
The company has delivered strong financial growth, with Revenue, EBITDA and Adjusted PAT growing at a CAGR of 41.7%, 45.5% and 118.4%, respectively, between FY24 and FY26. The brokerage believes the rising live subscriber base and unrecognised contracted revenue provide healthy revenue visibility, while strong asset occupancy and the ability to refurbish and redeploy products across multiple rental cycles support asset-level returns. Rentomojo is also positioned to benefit from broader structural trends, including increasing urban mobility, a growing share of unfurnished rental housing and rising consumer preference for flexible, asset-light consumption models.
However, SBI Securities has flagged several risks. The business remains capital intensive and is exposed to subscriber defaults, fluctuations in rental demand, geographic concentration and execution challenges related to maintaining asset utilisation and service quality. At the upper price band of Rs 404 per share, Rentomojo is valued at a post-issue P/E of 39.4x based on FY26 earnings.
Despite the relatively high valuation, SBI Securities believes the company’s market leadership, robust growth trajectory, improving profitability and favourable industry opportunity justify the premium. The brokerage has therefore assigned a “SUBSCRIBE” rating to the Rentomojo IPO.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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