Rentomojo IPO Expected to Yield High Returns
Rentomojo’s forthcoming IPO is projected to provide remarkable returns for a number of its early backers, with one investor poised to realise a return of 152X on their investment. Meanwhile, existing shareholders are preparing to sell shares worth Rs 1,106 crore through the Offer for Sale (OFS).
Potential Returns for Investors
As per analysis by Startup Superb, at the maximum price band of Rs 404 per share, Accel India is anticipated to generate approximately 8.63X returns on its Rs 317 crore OFS. Madison India is likely to achieve around 7.22X returns on its Rs 96.9 crore share sale. Additionally, ValueQuest and Edelweiss are projected to earn around 5.4X returns on their OFS shares valued at Rs 109.6 crore and Rs 116.5 crore, respectively.
Among the individual shareholders, Nitish Mittersain, the founder of Nazara Technologies, stands to benefit significantly. His investment in Rentomojo marks his initial venture into startup investments. He is planning to sell shares worth about Rs 6 crore through the OFS, potentially yielding a return of around 152X based on the acquisition cost outlined in the company’s offer documents and the upper IPO price band of Rs 404 per share.
Rajeev Chitrabhanu HUF is another noteworthy early investor, with a potential Rs 12.4 crore OFS that could generate around 26.6X returns. The founder of the company, Geetansh Bamania, is looking to offload shares valued at Rs 34.3 crore. Other participants in the OFS include Japan-based Mitsui Sumitomo Insurance Venture Capital (MSIVC), Pratithi Investment Trust, and Renaud Laplanche, among others.
IPO Structure and Valuation
The anticipated returns are calculated based on the weighted average acquisition cost disclosed in Rentomojo’s offer documents and the upper IPO price of Rs 404 per share. The IPO consists of a fresh issue worth Rs 150 crore and an OFS of around Rs 1,105.6 crore, attributing a valuation of approximately Rs 4,200 crore at the upper price band.
Financial Performance
Financial results indicate that Rentomojo has maintained its growth trajectory while achieving profitability. The revenue from operations surged by 45.5% year-on-year, reaching Rs 387 crore in FY26, a rise from Rs 266 crore in FY25. The profit after tax soared by 142%, increasing to Rs 104.2 crore from Rs 43.1 crore in the previous fiscal year.
Rentomojo’s IPO is set to open for subscription on September 9 and will conclude on September 11.