Rentomojo IPO opens with 33% GMP: Apply or avoid?
What's the story
Rentomojo, a leading D2C rental and subscription platform in India, has launched its initial public offering (IPO) today. The company aims to raise over ₹1,200 crore through the public offering. The funds will mainly be used for debt repayment and other corporate purposes. Rentomojo has already secured anchor investors with significant commitments ahead of its market debut.
Offering specifics
Fresh issue, OFS component in Rentomojo's IPO
The Rentomojo IPO is now open for subscription and will close on September 11. The company has set a price band of ₹384-404 per equity share for the issue.
The offering consists of a fresh issue of shares worth ₹150 crore and an offer for sale (OFS) of up to 2.73 crore equity shares worth ₹1,105.57 crore.
Notably, a large part of the IPO proceeds will go to existing shareholders selling their stakes instead of directly benefiting the company itself.
Timeline
Share allotment, listing dates announced
After the IPO closes, the share allotment will be finalized on September 15. The shares are likely to be listed on the National Stock Exchange (NSE) and BSE by September 17.
Retail investors can bid for a minimum of 37 shares, with further bids in multiples of this lot size.
At the upper end of the price band, one lot would cost ₹14,948.
Pricing strategy
Rentomojo offers ₹20 discount for eligible employees bidding in IPO
Rentomojo is valued at a price-to-earnings (P/E) multiple of 38.02 times at the lower end of the price band and around 40 times at the upper end, based on diluted earnings per share (EPS) for FY2026.
The company is also offering a ₹20-per-share discount to eligible employees bidding in this IPO. This discount will be adjusted against the applicable issue price.
Investor interest
Rentomojo IPO attracts strong interest from anchor investors
Ahead of its IPO, Rentomojo has raised ₹376 crore from anchor investors. The company allotted 93 lakh shares to 41 anchor investors at ₹404 per share.
The allocation price includes a face value of ₹1 per share and a share premium of ₹403 per share.
Currently, the Rentomojo IPO GMP (Grey Market Premium) stands at 33%, or ₹134 per share, over the upper end of the IPO price band of ₹404.