Rentomojo IPO Subscribed 1.97X On Day 1, NII Portion Leads At 3.87X
Rentomojo IPO is closing its bidding window on September 11 with the sort of order book that makes a listing day interesting. The furniture and appliance rental platform’s Rs 1,256 crore public issue was subscribed 1.97 times on the first day itself, according to data from the National Stock Exchange.
Day one: NIIs lead the charge
Non institutional investors drove the demand, with their portion subscribed 3.87 times. The employee portion was subscribed 2.09 times and the retail portion 2.05 times. Qualified institutional buyers stayed cautious, with their slice subscribed only 0.41 times on day one.
The price band is Rs 384 to Rs 404 per share. The issue opened on September 9 and mixes a fresh issue of Rs 150 crore with an offer for sale worth about Rs 1,106 crore by existing shareholders.
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Rent instead of buy
Founded in 2014, Bengaluru-based Rentomojo lets customers rent furniture, appliances and other household products on monthly plans instead of buying them outright. That model suits young professionals who shift cities every couple of years and do not want to spend on a sofa they will have to sell. Rentomojo competes with Furlenco and Cityfurnish in a rental market that stayed niche for years and is now finding paying customers.
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Profitable, and growing fast
The numbers explain why the issue is drawing interest. Rentomojo reported revenue from operations of Rs 387 crore in FY26, up 45.5% from the previous year. Profit rose 142% year on year to Rs 104 crore during the fiscal. Not many consumer startups in India can show a growth rate and a profit line like that together.
At the upper end of the price band, Rentomojo is seeking a valuation of around $444 million. The fresh issue proceeds will go towards debt repayment and general corporate purposes. The issue is managed by Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services.
What lies ahead
The shares are expected to list on the NSE and BSE on September 17. A day one subscription of 1.97 times is a decent but not frenzied book, and the muted QIB interest is worth watching on the final day. For the rental model itself, the bigger question is whether the profit holds as the company scales into new cities, since rental businesses carry the cost of owning and maintaining every product they hand out. Rentomojo has just made the case that the model works.
Sudip Kumar is a Writer at Bharat Fast, contributing to the platform for more than six months. With an interest in startups, entrepreneurship, digital media and graphics designing, he enjoys exploring emerging businesses and sharing informative stories with readers.
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