RentoMojo IPO Sees Strong Demand with 72.87 Times Subscription
RentoMojo, the furniture and appliance rental platform, has experienced a robust demand for its IPO, which has been subscribed 72.87 times on the last day of the subscription period. As per exchange data, the qualified institutional buyers (QIBs) significantly drove this demand, with bids reaching an astounding 177.3 times the available shares. The non-institutional investor (NII) portion received a subscription of 67.92 times, while the employee segment was subscribed 21 times and the retail category at 15.58 times.
IPO Details and Subscription Highlights
The IPO was opened for subscription on September 9, featuring a price band of Rs 384-404 per share. This issue includes a fresh capital raise of Rs 150 crore, alongside an offer for sale (OFS) amounting to Rs 1,105.6 crore from existing shareholders.
Anchor Investment Ahead of the IPO
Prior to the opening of the IPO, RentoMojo secured Rs 376.07 crore from anchor investors. This anchor round attracted participation from domestic mutual funds, insurance entities, and pension funds, with notable contributors such as Kotak, ICICI Prudential Quality Fund, Goldman Sachs, BlackRock Global Funds, HDFC Mutual Fund, among others.
Company Overview and Competitive Landscape
Established in 2014, RentoMojo operates out of Bengaluru, focusing on a subscription-based rental model for furniture, appliances, and various household products. The company faces competition from peers such as Furlenco and Cityfurnish. At the upper limit of the price band, RentoMojo is aiming for a valuation close to $444 million. The proceeds from the fresh issue are intended for debt repayment and other corporate initiatives.
Financial Performance
RentoMojo reported a significant increase in revenue from operations, which climbed 45.5% to Rs 387 crore in FY26. Additionally, the company experienced a remarkable profit surge of 142%, reaching Rs 104 crore during the fiscal year.
Management of the IPO
The IPO process is being managed by Motilal Oswal, Axis Capital, and IIFL Capital Services. It is anticipated that RentoMojo shares will be listed on the NSE and BSE on September 17.