[Update] RentoMojo IPO Subscribed 1.42X On Day 1

Update| September 9, 17:00 IST

Online furniture and appliance rental platform RentoMojo’s ₹1,256 Cr IPO was subscribed 1.42X on the first day of bidding, receiving bids for 3.08 Cr shares against the 2.18 Cr shares on offer.

Non-institutional investors (NIIs) led the demand, bidding for 1.14 Cr shares against the 46.54 Lakh shares reserved for them, translating into a subscription of 2.46X.

Within the NII category, the portion reserved for investors bidding between ₹2 Lakh and ₹10 Lakh was subscribed 3.23X, while the portion for bids exceeding ₹10 Lakh was booked 2.08X.

Retail investors placed bids for 1.67 Cr shares against the 1.09 Cr shares reserved for them, resulting in a subscription of 1.54X. The employee portion was subscribed 1.72X, receiving bids for 89,614 shares against 52,083 shares on offer.

Qualified institutional buyers (QIBs), meanwhile, showed relatively muted interest on the first day. The category received bids for 25.47 Lakh shares against the 62.06 Lakh shares reserved for it, translating into a subscription of 0.41X.

Original| September 9, 13:15 IST

Online furniture and appliance rental platform RentoMojo’s ₹1,256 Cr IPO was subscribed 69% by 12:57 IST on the first day of bidding today. 

The IPO received bids for 1.50 Cr shares against 2.18 Cr shares on offer, according to BSE data. 

The NII portion saw the highest demand, receiving bids for 42.05 Lakh shares against 46.54 Lakh shares on offer, translating into 90% subscription. 

Within the category, the portion reserved for investors placing bids of between ₹2 Lakh and ₹10 Lakh was subscribed 1.26 times. The portion for bids exceeding ₹10 Lakh was subscribed 73%. 

The retail portion received bids for 83 Lakh shares against 1.09 Cr shares on offer, translating into 76% subscription. Meanwhile, the employee portion was subscribed 75%, receiving bids for 38,850 shares against 52,083 shares reserved for the category. 

The QIB portion received bids for 24.96 Lakh shares against 62.06 Lakh shares on offer, translating into 40% subscription. FIIs accounted for 24.8 Lakh of the bids received in the category. 

RentoMojo has fixed the IPO price band at ₹384-₹404 per share. At the upper end of the price band, the IPO values the company at around ₹4,206 Cr (about $445.1 Mn).

The public issue comprises a fresh issue of shares worth ₹150 Cr and an offer for sale (OFS) of up to 2.7 Cr shares worth ₹1,105.6 Cr. 

RentoMojo is offering a discount of ₹20 per share to eligible employees bidding under the employee reservation portion. The IPO will close on Friday (September 11), with the tentative listing scheduled for September 17.

Ahead of the IPO, RentoMojo raised nearly ₹376.1 Cr from anchor investors. The company allotted 93.1 Lakh equity shares to 41 anchor investors at ₹404 apiece. 

Sixteen domestic mutual funds subscribed to 60.4 Lakh shares worth nearly ₹244.1 Cr through 30 schemes, accounting for 32.68% of the total anchor allocation. Five life insurance companies also picked up 12.6 Lakh shares.

Investors including Accel, Chiratae Ventures, Edelweiss Mutual Fund and GMO Venture plan to sell shares through the OFS. Cofounder Geetansh Bamania will also offload up to 8.5 Lakh shares as part of the issue.

Bamania told Inc42 he initially planned to sell nearly 20 Lakh shares through the IPO but later reduced his OFS portion as he remained bullish on the company’s prospects. 

Of the fresh proceeds, around ₹70 Cr will be used to repay or prepay certain borrowings, while ₹42.5 Cr will be deployed towards rental or licence payments for its offline stores and warehouses. The remaining capital will be used for general corporate purposes. 

Founded in 2014 by Bamania and Ajay Nain, RentoMojo operates a subscription-based platform for renting furniture, appliances, and other home essentials. It claims to operate 20 warehouses and 82 offline stores across 29 cities.

RentoMojo’s operating revenue rose 45.5% to ₹387 Cr in FY26 from ₹266 Cr in FY25. Its profit after tax jumped nearly 142% to ₹104.3 Cr from ₹43.1 Cr in the previous fiscal, aided by a tax credit of ₹36.6 Cr.

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