Rentomojo shares close at ₹532.95, up 31.91% on day 2
Rentomojo, known for its asset-heavy rental business model, made a splash on the stock market in the first and second trading sessions around the publication date.
Its shares closed at ₹532.95 on day two, up 31.91% from the IPO price of ₹404.
Despite a tiny dip during trading, investor excitement stayed strong.
Rentomojo IPO raised ₹1,256 cr
The Rentomojo IPO was a hot ticket, oversubscribed by nearly 73 times and raising ₹1,256 crore.
Proceeds from the fresh issue will be used primarily toward debt repayment, lease rentals, or license fees for the company's warehouses and experience stores, along with general corporate purposes.
Dr. Ravi Singh, Chief Research Officer at Master Capital Services Ltd. said investors should monitor Rentomojo's ability to sustain rental revenue, deliver earnings growth and maintain profitability in the near term, and the company may be relevant for investors comfortable with its asset-heavy rental business model.
The stock's opening days saw big trading volumes and a strong debut above issue price, definitely one to watch for anyone interested in new-age businesses!