RentoMojo Facing Legal Challenge Ahead of IPO
Rental startup RentoMojo is currently dealing with a legal predicament as former director and co-founder Ajay Nain has approached the National Company Law Tribunal with an intention to obstruct the impending Initial Public Offering (IPO). According to the company’s Draft Red Herring Prospectus (DRHP), Nain lodged a petition on March 25, 2026, at the Bengaluru bench naming the company, its promoters, directors, chief financial officer, RM Employee Benefit Trust, and its trustee, Beacon Trusteeship Limited, among other parties.
Nain departed from the company in August 2023, having sold 2,223 equity shares, which accounted for a 9.41% stake at that time, to the employee benefit trust. In his petition, he claims that he was provided with incomplete or inaccurate information during the transaction.
The former director is requesting several forms of relief, including a declaration that the share sale is invalid, reinstating his shareholding, and the removal of the promoter from the board and management. Furthermore, he has sought a waiver to maintain the petition under applicable sections of the Companies Act.
Significantly, Nain has requested immediate relief to prevent RentoMojo from proceeding with its IPO, which covers a directive to refrain from filing the DRHP or undertaking any actions related to the public issue. He has also requested restrictions on share transfers by the trust and other shareholders.
As of now, the case has not been scheduled for a hearing. In anticipation, the company has taken a proactive measure by filing caveats on March 26 and 27 to ensure that no orders are enacted without hearing their perspective.
In addition, RentoMojo has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) with the aim of raising Rs 150 crore through a fresh issue in its initial public offering (IPO). As stated in the DRHP, the planned IPO will feature a fresh issue of equity shares valued at Rs 150 crore, in conjunction with an offer for sale (OFS) of up to 2.84 crore equity shares by current shareholders.