Rentomojo IPO: The initial public offering (IPO) of RentoMojo has opened for bidding on Wednesday, September 9. The offer is available till September 11.
Analysts have assigned a bullish rating to the IPO, noting that the company has a market leadership position. Rentomojo is the largest player in India’s organised home furniture and appliance rental market, excluding water purifiers, with a 42 per cent to 47 per cent share of subscription revenue in FY25.
The company’s grey market premium (GMP) is currently signalling a listing pop of 33.17 per cent at ₹538.
SBI Securities
SBI Securities noted that Rentomojo accounted for around 50 per cent to 55 per cent of live subscribers in the market as of March 25. Its scale supports higher customer engagement and organic demand, with organic traffic contributing 61 per cent of website traffic in FY26 and repeat orders accounting for 50 per cent of total orders, up from 47 per cent in FY24.
The brokerage also noted that the company benefits from rising urban mobility, a large share of unfurnished rental housing and increasing preference for flexible, asset-light consumption.
SBI Securities however noted that the business remains capital intensive and exposed to subscriber defaults, rental demand, geographic concentration and execution risks associated with maintaining asset utilisation and service quality.
“At the upper price band of ₹404, Rentomojo is valued at a post-issue P/E of 39.4 times based on FY26 earnings. Considering its market leadership, strong growth, improving profitability and favourable industry opportunity, we assign a SUBSCRIBE rating to the issue,” the brokerage said.
Ventura
Ventura gave a ‘Subscribe’ rating to the IPO, noting that company’s revenue increased from ₹196 crore in FY24 to ₹387 crore in FY26
The brokerage noted that Rentomojo operates in the growing rental economy, driven by urbanisation, changing consumer preferences and demand for flexible lifestyle solutions. Its platform provides subscription-based rentals across furniture, appliances and other lifestyle categories, targeting young professionals, students and corporate customers.
“Rentomojo manages the complete rental lifecycle, including sourcing, refurbishment, delivery and customer servicing. Key strengths include a recognised brand, recurring rental revenue model and technology-led operations. Key risks include asset utilisation, depreciation of rental assets, customer acquisition costs, competition and logistics efficiency,” Ventura said.
Rentomojo IPO details
Rentomojo IPO is a book build issue of ₹1,255.57 crores. The issue is a combination of fresh issue of 37.15 lakh shares aggregating to ₹150 crores and offer for sale of 2.74 crore shares aggregating to ₹1,105.57 crores.
The company has set issue price band at ₹384 to ₹404 per share. The lot size for an application is 37 shares
Motilal Oswal Investment Advisors Ltd. is the book running lead manager and Kfin Technologies Ltd. is the registrar of the issue.
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