Rentomojo IPO opens today; GMP signals 32% potential listing gains. Should you subscribe?

The much-awaited Rentomojo IPO is set to open for subscription on September 9, giving investors a three-day window to place their bids. There's already plenty of buzz around the issue: the stock is commanding a grey market premium (GMP) of around 33% over its issue price, signalling strong expectations for listing gains.

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

The issue is a combination of a fresh issue and an offer for sale (OFS). The fresh issue comprises 37.15 lakh equity shares, aggregating to Rs 150 crore. The much larger OFS component consists of 2.73 crore equity shares worth Rs 1,105.57 crore, meaning a significant portion of the IPO proceeds will go to existing shareholders selling their stakes rather than directly to the company.


Read more: Rentomojo IPO GMP Day 1 Live Updates

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 IPO GMP Today

The Rentomojo IPO GMP (Grey Market Premium) currently stands at 33%, or Rs 134 per share, over the upper end of the IPO price band of Rs 404. Based on the latest GMP, the estimated listing price of Rentomojo shares is around Rs 538, indicating a potential listing gain of approximately 32% over the upper issue price.

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 change before listing depending on demand, broader market conditions and investor sentiment.

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Anchor investors

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.

The anchor book saw participation from several large domestic and global investors, including Goldman Sachs Funds - Goldman Sachs India Equity Portfolio, BlackRock Global Funds - India Fund, ICICI Prudential Quality Fund, HDFC Mutual Fund, Mirae Asset Great Consumer Fund, Motilal Oswal Large Cap Fund and HDFC Standard Life Insurance Company.

Rentomojo IPO GMP Today

The Rentomojo IPO GMP (Grey Market Premium) currently stands at 33%, or Rs 134 per share, over the upper end of the IPO price band of Rs 404. Based on the latest GMP, the estimated listing price of Rentomojo shares is around Rs 538, indicating a potential listing gain of approximately 32% over the upper issue price.

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 change before listing depending on demand, broader market conditions and investor 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)