Rentomojo IPO Review: Price Band, Dates, Lot Size, Financials and RisksRentomojo IPO Review: Price Band, Dates, Lot Size, Financials and Risks

The Rentomojo IPO opens on September 9 and closes on September 11, 2026. Rentomojo is a Bangalore-based technology-driven D2C furniture and appliance rental and subscription platform raising ₹1,255.57 crore through a fresh issue of ₹150 crore and an offer for sale of ₹1,105.57 crore by the promoter and multiple institutional investors. This Rentomojo IPO review covers the price band, lot size, financials, business model, IPO objectives, strengths, risks, and how to apply.

IPO Snapshot

Event	Date
IPO Opens	September 9, 2026
IPO Closes	September 11, 2026
Allotment Date	September 15, 2026
Refund	September 16, 2026
Shares Credited to Demat	September 16, 2026
Listing Date (BSE, NSE)	September 17, 2026

Price Band and Lot Size

Detail	Value
Price Band	₹384 to ₹404 per share
Face Value	₹1 per share
Lot Size	37 shares
Minimum Investment	₹14,948 at upper price band
Retail Maximum	13 lots, or 481 shares (₹1,94,324)
Employee Discount	₹20 per share
Fresh Issue	₹150 crore
Offer for Sale	₹1,105.57 crore
Total Issue Size	₹1,255.57 crore
Listing	BSE and NSE

Pre-issue shareholding stood at 10,13,91,096 shares, rising to 10,51,06,545 shares post-issue. The fresh issue will bring new capital into Rentomojo, while the offer for sale of ₹1,105.57 crore will go to a large group of selling shareholders, including promoter Geetansh Bamania and institutional investors such as Accel India IV (Mauritius) Ltd., Edelweiss Discovery Fund, IDG Ventures India Fund III, ValueQuest S.C.A.L.E. Fund, and Madison India Opportunities, among others. Rentomojo will not receive any proceeds from the offer-for-sale portion.

What Does Rentomojo Actually Do

Rentomojo, incorporated in April 2012, operates a technology-driven, full-stack D2C online rental and subscription platform for home furniture and appliances in India. Rather than requiring large upfront purchases, the company lets consumers rent, return, upgrade, and relocate products like beds, mattresses, washing machines, refrigerators, wardrobes, sofas, televisions, and water purifiers under flexible subscription plans. As of March 31, 2026, its product portfolio comprised 851,184 live items.

The company runs an integrated asset-lifecycle model covering category management, product design, procurement, refurbishment, servicing, reverse logistics, and multi-cycle redeployment. This full-stack approach lets Rentomojo reuse assets across multiple rental cycles, improving capital efficiency and occupancy rather than requiring fresh capex for every new subscriber.

Rentomojo operates an omni-channel model combining its online ordering platform with 82 experience stores across India as of March 31, 2026. As of the same date, it had 253,825 live subscribers across 29 cities, supported by 20 warehouses totaling 538,933 sq. ft. of warehousing space. The company recorded an average delivery turnaround time of 2.35 days in FY26 and maintained an occupancy rate of 83.34% during the year.

The company has expanded into private-label manufacturing, producing refrigerators and washing machines in partnership with Dixon Technologies (India) Limited, as well as its own-branded water purifiers. As of March 31, 2026, Rentomojo had 835 permanent employees and 1,772 contractual workforce personnel across its 29-city network.

The Money Numbers

Metric	FY24	FY25	FY26
Total Income (₹ Crore)	195.80	271.96	394.09
Profit After Tax (₹ Crore)	22.41	43.11	104.30
Net Worth (₹ Crore)	139.61	183.61	295.81

Revenue grew from ₹195.80 crore in FY24 to ₹394.09 crore in FY26, a rise of 45% between FY25 and FY26 alone. Profit after tax grew even faster, from ₹22.41 crore in FY24 to ₹104.30 crore in FY26, up 142% year-on-year in FY26. Net worth more than doubled over the same window, from ₹139.61 crore to ₹295.81 crore.

EBITDA rose from ₹78.15 crore in FY24 to ₹118.44 crore in FY25 and ₹163.46 crore in FY26, while total borrowings stood at ₹187.59 crore in FY26 against ₹154.58 crore in FY25 and ₹147.22 crore in FY24. EBITDA margin was 41.48% in FY26, slightly down from 43.55% in FY25, while PAT margin expanded sharply from 16.21% to 26.95% over the same period.

Return ratios strengthened materially: ROE rose from 26.67% in FY25 to 43.51% in FY26, RoNW matched at 43.51%, and ROCE improved from 25.14% to 25.34%. Debt-to-equity improved from 0.84 to 0.63 over the year. Rentomojo has been consistently profitable since FY23, according to the company’s disclosed competitive strengths.

At the upper price band of ₹404, pre-issue EPS of ₹10.29 implies a P/E of 39.26 times, while post-issue EPS of ₹9.92 implies a P/E of 40.73 times. NAV stood at ₹28.65 per share, giving a price-to-book value of 14.10 times at the offer price, down from an implied 22.68 times a year earlier as book value grew. Post-issue market capitalisation at the upper price band works out to approximately ₹4,246.30 crore.

Objects of the Issue

Purpose	Amount (₹ Crore)
Repayment or prepayment of certain outstanding borrowings and accrued interest	70.00
Payment of lease rental/license fee for warehouses and experience stores	42.50
General corporate purposes	Balance amount
Total identified objects	112.50

This structure indicates Rentomojo intends to strengthen its balance sheet and secure its physical infrastructure footprint, rather than funding pure expansion capex from the fresh issue.

Strengths

• Consistently profitable D2C rental platform since FY23, in a sector where many similar businesses have historically struggled to reach profitability.
• Strong subscriber base of 253,825 live subscribers across 29 cities, backed by an extensive catalogue of 851,184 live items as of March 31, 2026.
• Marquee institutional investor base, including Accel, IDG Ventures, Edelweiss and ValueQuest, lending credibility and governance depth.
• Predictable, recurring subscription revenue combined with a high and improving return on capital employed of 25.34% in FY26.
• Omni-channel presence blending an online platform with 82 physical experience stores, supporting both digital-first and offline customer acquisition.
• Full-stack asset-lifecycle management, including refurbishment and multi-cycle redeployment, which improves capital efficiency versus a pure buy-and-hold rental model.
• Integrated model spanning e-commerce, subscription and re-commerce, plus private-label manufacturing partnerships with Dixon Technologies, supporting margin control on hardware costs.
• Sharp margin and profitability improvement, with PAT rising 142% year-on-year in FY26 and PAT margin expanding from 16.21% to 26.95%.

Risks

• The IPO is valued at a pre-issue P/E of 39.26 times and post-issue P/E of 40.73 times, alongside a price-to-book of 14.10 times, a demanding valuation for a still-scaling consumer rental business.
• The offer is heavily weighted toward an offer for sale, with ₹1,105.57 crore of the ₹1,255.57 crore issue (about 88%) going to existing shareholders rather than the company, making this predominantly an exit event for early investors and the promoter.
• The rental and subscription model is asset-heavy in inventory terms; asset refurbishment, depreciation, warehousing costs and reverse logistics can pressure margins if occupancy rates decline.
• The company depends on lease arrangements for its warehouses and experience stores; part of the fresh-issue proceeds (₹42.50 crore) is earmarked to pay lease rentals and license fees, reflecting an ongoing recurring cost burden.
• Total borrowings increased from ₹147.22 crore in FY24 to ₹187.59 crore in FY26, even as the company plans to use ₹70 crore of fresh-issue proceeds to reduce this debt.
• EBITDA margin declined slightly from 43.55% in FY25 to 41.48% in FY26, suggesting some cost pressure even as revenue and PAT grew rapidly.
• The company operates in a competitive consumer rental and D2C space, where recently listed e-commerce peers such as Meesho and Urban Company have shown volatile post-listing performance, from Meesho’s negative pre-listing P/E to Urban Company’s strong listing gains, indicating investor sentiment in this space can swing sharply.
• A large, dispersed group of institutional selling shareholders participating in the OFS could create overhang concerns if lock-in restrictions ease post-listing.
• Promoter shareholding will decline from 21.49% pre-issue to 19.94% post-issue, reflecting the partial exit built into the offer structure.

How to Apply

You can apply for the Rentomojo IPO through Alice Blue by selecting your investor category, choosing the number of lots, and submitting your bid between September 9 and September 11, using either UPI or ASBA as your payment method.

Frequently Asked Questions