Rentomojo IPO debuts at 19% premium

BENGALURU: Furniture and appliance rental platform Rentomojo ended its first trading day 32% above its IPO price on Thursday, after listing at a premium of nearly 19%.The stock closed at Rs 534.2 on the NSE, up 32.3% from its issue price of Rs 404. On the BSE, it ended at Rs 532.9, a 31.9% gain.Shares opened at Rs 482.4 on the NSE and Rs 480 on the BSE, representing listing gains of 19.42% and 18.81%, respectively. They touched intraday highs of Rs 546.80 on the NSE and Rs 547 on the BSE.The debut followed strong demand for Rentomojo’s Rs 1,255.6-crore IPO, which was subscribed 72.88 times. The qualified institutional buyer portion was subscribed 177.2 times, while the non-institutional and retail portions were subscribed 67.93 times and 15.5 times, respectively.The IPO comprised a fresh issue of about Rs 150 crore and an offer for sale (OFS) of Rs 1,105.6 crore by existing shareholders. The OFS accounted for nearly 88% of the issue.The IPO also enabled substantial cash-outs by early investors. Accel sold 78.4 lakh shares at the issue price for about Rs 317 crore, generating a gross return of around 8.6 times on the shares sold, based on their weighted average acquisition cost.IDG Ventures India Fund III, managed by Chiratae Ventures, sold its entire holding of 28.03 lakh shares for about Rs 113.3 crore. Madison India received around Rs 96.9 crore from the sale of 23.9 lakh shares.Cofounder and CEO Geetansh Bamania sold nearly 8.49 lakh shares for about Rs 34.3 crore, while retaining a 13.3% stake in the company.After the listing, Bamania said building awareness of furniture and appliance rentals would be a key focus. Among consumers searching for rental homes, only a small proportion currently consider renting furniture and appliances, he said.Rentomojo reported total income of Rs 394 crore in FY26 and a profit after tax of Rs 104.2 crore. The profit included a one-time tax credit of Rs 36.6 crore.The company’s model also requires continued investment in rental inventory. Incremental capital expenditure stood at about Rs 175 crore in FY26, compared with operating cash flow of around Rs 170 crore.Get the latest Business News and Live updates. Download the TOI app.