Rentomojo IPO Day 3: GMP at 33%, subscription reaches 4.71 times. Should you subscribe?

The Rentomojo IPO has entered its third day of bidding, drawing strong interest from investors. In the grey market, the issue is commanding a grey market premium (GMP) of around 33% over its issue price, signalling positive market expectations ahead of its listing.

Investor interest strengthened on Day 2, with the IPO receiving an overall subscription of 4.71 times against the 2.17 crore shares on offer. The retail category was subscribed 4.19 times, with retail individual investors (RIIs) bidding for shares against the 1.08 crore shares reserved for them.

The Rs 1,255.57 crore Rentomojo IPO has a price band of Rs 384 to Rs 404 per equity share. The issue opened for subscription on September 9, 2026, and will close on September 11, 2026.


The public issue comprises a fresh issue of shares as well as an offer for sale (OFS). The fresh issue includes 37.15 lakh equity shares worth Rs 150 crore, while the much larger OFS component comprises 2.73 crore equity shares valued at Rs 1,105.57 crore.

The company’s shareholding structure and the relatively limited size of the fresh issue are important factors that investors should consider before subscribing to the IPO.

The share allotment is expected to be finalised on September 15, following the close of the issue. Rentomojo shares are proposed to be listed on both the National Stock Exchange (NSE) and BSE, with September 17, 2026, set as the tentative listing date.

Retail investors can place bids for a minimum of 37 shares, with subsequent bids required to be made in multiples of 37. At the upper end of the price band, Rs 404 per share, a single lot would cost Rs 14,948.

Based on diluted earnings per share (EPS) for FY2026, the IPO values Rentomojo at a price-to-earnings (P/E) multiple of 38.02 times at the lower end of the price band and approximately 40 times at the upper end.

Eligible employees participating in the IPO will receive a discount of Rs 20 per share, which will be adjusted against the applicable issue price.

Motilal Oswal Investment Advisors Ltd. is serving as the book-running lead manager for the issue, while Kfin Technologies Ltd. has been appointed as 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.

Rentomojo IPO Subscription Status

The Rentomojo IPO received a strong response from investors, with the issue subscribed 4.71 times against the 2.17 crore shares on offer.

The retail category saw the issue subscribed 4.19 times, with Retail Individual Investors (RIIs) bidding for shares against the 1.08 crore shares reserved for them.

The Non-Institutional Investors (NIIs) category recorded the strongest demand, with subscriptions reaching 11.60 times the 46.54 lakh shares allocated to the segment.

Meanwhile, Qualified Institutional Buyers (QIBs) subscribed to 45% of their allotted quota of 62.05 lakh shares.

Rentomojo IPO GMP Today

The Rentomojo IPO continues to command a healthy premium in the grey market. The Grey Market Premium (GMP) currently stands at Rs 135 per share, or around 33%, above the upper end of the IPO price band of Rs 404.

At the current GMP, the estimated listing price stands at around Rs 539 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 ahead of listing depending 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)